Question: I’ve saved for years and finally bought my first off-plan apartment in Jumeirah Village Circle (JVC) in Dubai. The project is still two years from handover, but with stories about delays and defaults, I’m feeling anxious. How can I protect my investment and know my money is safe? SG, Sharjah
Answer: First of all, congratulations on reaching this milestone. Buying your first property, especially off-plan, is a big step and one that offers great potential but understandably comes with some concerns.
Your protection starts with the escrow law. Under Law No. 8 of 2007, every off-plan project in Dubai must have a Real Estate Regulatory Authority-approved escrow account. Your payments should go into this account, not directly to the developer.
This ensures that your money is only used for that specific project’s construction. If the project fails, the Rera can step in to refund buyers from the escrow.
Before buying any off-plan unit, you should always carry out due diligence. You can check the developer’s reputation on the Dubai Rest app or the Dubai Land Department’s website. Look for their completion history, past delays or disputes and quality of delivered projects, among other things.
All developers with strong track records tend to stick to delivery timelines and quality. In fact, some even deliver early, so you shouldn’t worry about things that (hopefully) won’t happen.
Monitor the project’s progress and stay in regular contact with the developer. Request construction updates, site visit opportunities, and DLD status reports. Many projects are now linked to the Mollak system, which tracks service charge transparency and building progress. These are found on the DLD’s website.
Other things to consider are post-handover costs. Service charges in areas like JVC can range between Dh12 to Dh16 per square foot, so factor these into your long-term affordability. Also, confirm if your developer offers a post-handover payment plan and what interest (if any) applies.
If at any point you are not satisfied or if something feels off, especially if the construction halts or communication drops, file this concern with the Rera. They have taken action in the past, even freezing or cancelling projects that fail to meet standards.
Your anxiety is normal but Dubai’s off-plan market today is far more regulated than in the past. You’ve done your part by buying smart, just remain engaged and informed.
Q: I’m a European expat, recently retired, and want to buy an apartment in Dubai Marina to live in part-time and rent out when I’m back home.
Can I own freehold property and how will this affect my visa and estate planning? BR, Dubai
A: I think this is a situation that an increasing number of retirees and semi-residents are exploring. Dubai’s property market is maturing and now offers clear ownership structures and residency pathways for expat investors.
As a European, you can buy freehold property in Dubai’s designated zones like Dubai Marina, Palm Jumeirah, Downtown and JVC, among many other areas.
Ownership is 100 per cent yours, and you can live in, rent out, or sell the property at will.
Owning property gives you certain visa options. There are two main options available:
The two-year property visa requires a property valued at Dh750,000 ($204,220) and the 10-year golden visa is for investments above Dh2 million, even across several properties. These visas are renewable and allow several entries, which suits part-time residents well.
There are a few things to consider for estate planning and inheritance.
By default, the UAE follows Sharia inheritance law, which may not align with your wishes. To protect your property and ensure it goes to your intended heirs, register a non-Muslim will through the DIFC Wills Centre or Dubai Courts. You can specify executors, beneficiaries and asset distribution clearly.
Dubai Marina apartments can fetch annual gross rental yields of 6 per cent to 8 per cent, depending on size and views. For short-term rental, you will attract even higher returns, but need to apply for a holiday home license from the Dubai Department of Economy and Tourism.
Watch: Here's what Dh1 million gets you in Dubai's property market today
Remember to also budget for service charges (Dh16 to Dh20 per sq ft), DLD transfer fees (4 per cent), property management fees if you won’t be residing full time and any unexpected maintenance issues.
Owning property in Dubai today is more transparent and advantageous than ever. With the right legal planning, it can support your retirement goals while giving you a second home.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
