How to check a Dubai off-plan project is safe

How to check a Dubai off-plan project is safe

Andy Mederos · Broker and investor in Dubai · Updated: · 3 min read

Quick answer

Before paying, check in the Dubai REST app or on the DLD website that the project is registered, how far construction has progressed and which is its escrow account, and pay only into that account. Verify the ad with its QR code, from the DLD’s Madmoun service, and make sure the developer registers your contract in Oqood within 90 days. It is all done online, without travelling to Dubai.

In this guide8 sections
  1. What is the escrow account and how does it protect you?
  2. How do I see construction progress?
  3. How do I verify an ad?
  4. What protection do you have if the project is cancelled?
  5. How do I know my purchase is registered?
  6. Checking a project from the UK or the US
  7. Things to keep in mind
  8. Frequently asked questions
What to checkWhere
That the project exists and its progressDubai REST and DLD project status
The project escrow account numberDubai REST and your contract
That the ad is authorisedThe ad’s QR code, DLD Madmoun service
That your purchase is registeredProvisional Oqood registration certificate, sent to you by email
Timings, payments and handoverThe SPA contract clauses

What is the escrow account and how does it protect you?

It is a project bank account where off-plan buyers’ payments are deposited. Law No. 8 of 2007 requires every Dubai developer selling off-plan to have one, and the bank releases money as construction progresses. In addition, 5% is retained for one year after completion as a guarantee against defects.

How do I see construction progress?

In the Dubai REST app or the DLD project status section. It shows the completion percentage, real photos, the escrow account number and payments due from owners.

How do I verify an ad?

Property ads in Dubai carry a QR code from the DLD’s Madmoun service. Scan it to see whether the ad has a DLD permit.

What protection do you have if the project is cancelled?

The DLD has a procedure for this. The account passes to its project liquidation department, which asks the developer to refund buyers within 60 days of the cancellation decision. If it does not, the matter goes to court.

What happens in each case, from delays to cancellation, is in the guide to off-plan delays and cancelled projects.

How do I know my purchase is registered?

When the developer registers the sale in Oqood, you receive a provisional registration certificate by email. The contract must be registered within 90 days of signing. The full process is in the Oqood registration guide.

Checking a project from the UK or the US

None of this requires being in Dubai. The DLD website, the Dubai REST app and the ad’s QR code all work online, and the Oqood certificate arrives by email.

Before sending the first transfer from your bank, check that the escrow account number in your payment letter matches the one in Dubai REST. How to pay from abroad is covered in the payment methods guide.

If you want to speak to the developer, mind the time difference. Dubai is on UTC+4 all year: 4 hours ahead of the UK in winter and 3 in summer, and 9 hours ahead of New York and Miami in winter and 8 in summer.

Things to keep in mind

  • Look the project up in Dubai REST or on the DLD website.
  • Check the completion percentage and photos.
  • Note the escrow account number and pay only into it.
  • Scan the ad’s QR code.
  • Read the timings and handover date in the SPA.
  • Keep the Oqood certificate when it arrives.

Depending on your budget, we present the project that fits you and resolve your questions with the developer’s team. With this guide you can check each point yourself in a few minutes too.

Frequently asked questions

Can I pay the developer outside the escrow account?

Plan instalments go into the project escrow account. If you are asked to pay into another account, check with the developer and in Dubai REST first.

How do I know if a Dubai off-plan project is safe?

Check on the DLD website or in Dubai REST that the project is registered, with its escrow account and construction progress. Verify the ad with its QR code and, after signing, that your purchase is registered in Oqood within 90 days.

What protection is there against defects?

The law retains 5% of the amounts paid into the escrow account for one year after the project is completed.

What about the projects Lurelis suggests?

Depending on your budget, we present the project that fits you and resolve your questions with the developer’s team. You can check each point in this guide yourself in a few minutes.

Can I check a Dubai project from abroad?

Yes. The DLD website, the Dubai REST app and the ad’s QR code work online, and the Oqood certificate arrives by email.