How to choose a Dubai developer and check it with the DLD

How to choose a Dubai developer and check it with the DLD

Andy Mederos · Broker and investor in Dubai · Updated: · 11 min read

Quick answer

Dubai has no official ranking of developers, but it does have a public register. To sell off-plan, a developer must be on the DLD register of developers, hold a valid licence and open an escrow account for each project. The DLD’s open data shows its licence and all its projects, with their status, completion percentage and dates, so you can see how many it has finished, how late they were and whether any have stalled. Then look at the specific project and read the contract. It is all done online, from any country. When you choose a project with us, we resolve your questions with the developer’s team and go through the contract with you.

In this guide11 sections
  1. Are Dubai developers reliable? What the law requires of all of them
  2. Master developer and building developer
  3. How to check a developer with the DLD, step by step
  4. Its track record: finished, late or stalled projects
  5. Established or newer developer: what changes
  6. What differs from one developer to another: the contract
  7. After handover: guarantees and building management
  8. Warning signs before booking
  9. Choosing a Dubai developer from the UK or the US
  10. Things to keep in mind
  11. Frequently asked questions
What to look at in a developer before booking.
What to checkWhereWhat it tells you
Registration and licenceDLD register of developers and open dataThat it can sell off-plan and until when its licence runs
Past projectsDLD open data, projects tabHow many it has finished and when, against plan
Stalled projectsEach project’s status at the DLDWhether it has frozen or cancelled projects
The project on offerDLD project status and Dubai RESTRegistration, escrow account and progress
The termsThe SPA contractHandover, delays, size, payments and resale

Are Dubai developers reliable? What the law requires of all of them

The usual question is which are the best developers in Dubai. Before getting to names, it helps to know what every one of them has to meet, because that already filters a lot.

  • Registration. The DLD keeps a register of real estate developers. None may carry on development in Dubai unless it is on that register and licensed by the relevant authorities.
  • An escrow account per project. To sell off-plan, the developer asks the DLD to open an escrow account in the project’s name, with the land title, approved plans and a cost study signed by an auditor. Each project has its own account, and the developer’s creditors cannot seize that money.
  • Permission to advertise. It cannot advertise an off-plan project or take it to exhibitions without written DLD authorisation. That is why ads carry a permit and a QR code.
  • Every sale registered. Each off-plan purchase is entered in Oqood, and the law bans selling without land or approvals.
  • Registered agents. The developer may only work with agents on the DLD brokers register.

What does not exist is an official tiered classification of developers. The “top-tier developer” lists that circulate are industry opinion. The official part is the register: a developer is on it or not, and beyond that what counts is its track record, which is also public.

Master developer and building developer

Many Dubai communities have two levels. The master developer owns the large plot and builds the community: roads, green areas, amenities and the shared rules. It then sells plots to other developers, who build each building.

This matters to you for two reasons. First, your contract is with the developer building your block, and that is the one to check, even if the community’s name is well known. Second, the master developer also approves the building’s plans and its off-plan sale, so both need to be in order.

So a well-known community guarantees nothing about the building. Look at who is building it.

How to check a developer with the DLD, step by step

All of this is free on the DLD website and the Dubai REST app. It takes a few minutes:

  1. Find the developer on the register. The DLD publishes its list of licensed developers, and Dubai REST shows certified developers.
  2. Look at its details. In the DLD open data, the developers tab gives its registration number, the date it registered, its licence type, legal form, licence number with issue and expiry dates, and its Dubai Chamber of Commerce number.
  3. Check the licence is valid and that the name matches the one in the ad and the contract. If the ad uses a brand name, find out which company is behind it.
  4. Review its project history, covered in the next section.
  5. Review the project on offer: registered, with its escrow account and construction progress. We explain it in the guide to checking an off-plan project.
The five steps to check a Dubai developer1RegisterIt is on the DLD register of developers2LicenceIts licence is valid3Track recordProjects finished, under way or stalled4The projectRegistered, with escrow and progress5The contractHandover, delays, size and resaleIt can all be checked online, from any country,before you pay anything
How to check a developer, from the quickest step to the one that takes longest.

Its track record: finished, late or stalled projects

This says more about a developer than anything else, and hardly anyone looks. In the DLD open data, the projects tab lets you search by developer and download the list. For each project you see the start date, the planned end date, the actual completion date, the completion percentage, the last inspection date, the escrow account number and its status.

The statuses the DLD shows for each project, in general terms.
DLD statusWhat it meansWhat you look at
ActiveUnder construction and selling normallyThe completion percentage and whether it moves between inspections
FinishedConstruction completeWhether it finished close to the planned date or much later
FrozenStopped, not moving forwardHow many the developer has and since when
Under cancellation or cancelledThe project is not going aheadWhether it is a one-off or a pattern
Conditional activationStill pending requirements to go activeWhat is missing before you buy

With that list you can answer three questions:

  • How many projects has it finished? A developer that has already handed over several buildings has a record you can check.
  • How late were they? Compare the planned date with the actual completion date. A few months are common in construction. Delays of years across several projects are another matter.
  • Does it have stalled projects? A frozen or cancelled project is not always the developer’s fault, but several are a reason to ask.

The law also strikes off a developer that, without an acceptable reason, has not started construction six months after being allowed to sell off-plan. If a project has been on sale for a long time with construction at 0%, ask why. See how handover works in the guide to off-plan handover.

Established or newer developer: what changes

A newer developer is not worse for being new, and a well-known one is not everything. The law protects buyers from both equally: both must sell through escrow, register your purchase in Oqood and answer for defects. What changes is how much you can check and the terms you buy on.

General tendencies. Each project is looked at on its own.
Developer with years of handoversNewer developer
Track record you can checkMany finished projects on the DLDFew or none yet
PriceOften a little higher for the nameOften competes on price
Payment planShorter or with a bigger deposit, depending on the projectOften longer or with post-handover payments
Resale demandMore predictableDepends more on the area and the project
Legal protectionEscrow, Oqood and the legal guaranteesThe same: the law makes no distinction
What to check mostThat the price is worth it for the areaThe licence, construction progress and the contract

A developer with years of handovers lets you see how it has delivered, and that is usually reflected in the price. A newer developer may offer a better price or an easier plan, and then it pays to look more carefully at its licence, construction progress and contract. Compare plans in the guide to payment plans and try your own figures in the off-plan calculator, which already has an example of AED 1,000,000 on a 60/40 plan.

What differs from one developer to another: the contract

The law is the same, but each developer has its own sale and purchase agreement, the SPA, and that is where the differences that really affect you are. Before booking, look at:

  • The handover date and the margin the developer keeps to be late without penalty.
  • What happens if it is later still: whether there is compensation and how much, or whether you can terminate.
  • The size: how much the flat can differ from the plan and how the price is adjusted.
  • The payment plan: whether it is tied to construction progress or to fixed dates.
  • Costs: who pays the DLD fee and whether there is an admin fee or other charges.
  • Resale before handover: from what percentage paid you get the NOC and what it costs.
  • When you start paying the service charge.

All of this depends on each developer and project. We go through it clause by clause in the guide to the SPA contract, and resale in the guide to selling before handover. When you choose a project with us, we go through these terms with you before you book.

After handover: guarantees and building management

Choosing a developer is also choosing who you will deal with afterwards. Dubai’s jointly owned property law makes the developer liable for 10 years for structural defects, from the completion certificate, and for 1 year for installations, from handover.

In addition, when construction finishes, the bank retains 5% of the escrow account and only releases it one year after the units are registered in the buyers’ names. It gives the developer a reason to fix whatever is outstanding.

Each project’s DLD record also shows the building’s management company, which collects the service charge and maintains the common areas. See what it costs in your area in the guide to service charges by area.

Warning signs before booking

  • You are asked to pay into an account that is not the project’s escrow, or one in another company’s name.
  • The ad has no permit or QR code, or the QR code does not lead to the project you are shown.
  • The developer is not on the DLD register or the name in the contract does not match.
  • The project does not appear in the DLD project status.
  • The person selling it has no broker number, the BRN, or their agency has no ORN. Both can be checked in Dubai REST.
  • You are promised a guaranteed return or certain capital growth.
  • You are pressed to pay today without being given the contract to read.

None of these checks requires travelling. If something does not add up, ask before paying anything.

Choosing a Dubai developer from the UK or the US

Checking a developer is the same wherever you live: the register, the DLD data and Dubai REST are all online. What changes is how you send the first payment, how you sign if you do not travel and what time you speak to the developer. If you need a power of attorney for a step, as the UAE is not part of the Apostille Convention, it is legalised in a chain: notary, your foreign ministry, the UAE embassy and the UAE Ministry of Foreign Affairs. Dubai is on UTC+4 all year. How to pay is in the payment methods guide.

Choosing a Dubai developer from the UK

Payment is usually by bank transfer in pounds or dirhams to the project’s escrow account. Before the first one, check the number matches the DLD record. Dubai is 4 hours ahead of the UK in winter and 3 in summer, so calls with the developer fit well in your morning.

Choosing a Dubai developer from the US

Paying in dollars carries no currency risk, as the dirham is pegged to the dollar. An international transfer from your bank is the usual route, and it is worth confirming the escrow account details first through an official developer channel. New York and Miami are 9 hours behind Dubai in winter and 8 in summer.

From anywhere else

The checks are the same. For what you declare at home, ask a tax adviser in your country.

Things to keep in mind

  • Find the developer on the DLD register and check its licence is valid.
  • Look at the developer building your block, not just the community’s.
  • Download its projects from the DLD and compare planned and actual dates.
  • Check whether it has frozen or cancelled projects.
  • Check the specific project: registration, escrow account and progress.
  • Read the handover, delay, size, payment and resale terms in the SPA.
  • Pay only into the project’s escrow account.

Depending on your budget, we present projects that suit you, resolve your questions with the developer’s team and go through the contract with you before you book. With this guide you can check each point yourself in a few minutes too.

Frequently asked questions

Which are the best developers in Dubai?

There is no official ranking. What you can check is that the developer is on the DLD register, that its licence is valid and how its past projects went, with their dates and status.

How do I know if a Dubai developer is reliable?

Find it on the DLD register of developers, check its licence and download its project history from the DLD open data. Then check the specific project and read the contract.

How do I choose a developer in Dubai?

Check it is on the DLD register of developers with a valid licence, look at its finished or stalled projects in the DLD’s open data and confirm each project has its own escrow account.

Is a big developer safer?

It has more of a record you can check, but the law protects every buyer equally: escrow account, Oqood registration and guarantees against defects.

What if the developer does not start construction?

The law provides for striking it off the register if it has not started six months after being allowed to sell off-plan, without an acceptable reason. The DLD also has a refund procedure if a project is cancelled.

What guarantee does the developer give after handover?

It is liable for 10 years for structural defects and 1 year for installations. In addition, 5% of the escrow account is retained until one year after the units are registered in the buyers’ names.

Can I buy from a Dubai developer from the UK?

Yes. You check it online, pay by transfer into the escrow account and sign remotely.

Can I buy from a Dubai developer from the US?

Yes. Paying in dollars carries no currency risk, and the developer and project can be checked online.