In Dubai, there are certain measures and regulations in place to provide some level of assurance that off-plan properties will be completed. These measures aim to protect investors and ensure the timely completion of projects. Here are a few factors to consider:
RERA Approval: The Real Estate Regulatory Authority (RERA) in Dubai regulates and oversees the real estate sector. Developers must obtain approval from RERA for their projects, which includes verifying the financial capability and track record of the developer. RERA aims to ensure that developers have the necessary resources and expertise to complete their projects.
Escrow Accounts: The Dubai Escrow Law requires developers to deposit the funds received from buyers into an escrow account specifically designated for that project. This mechanism ensures that developers cannot use the funds for purposes other than the construction of the project. The funds are released to the developer in installments based on the project’s completion percentage, which is verified by the government authorities.
Performance Bonds: Some developers may be required to provide performance bonds or guarantees to protect buyers in case of project delays or non-completion. These bonds serve as financial security and can be used to compensate buyers or complete the project in the event of default by the developer.
Transparency and Reporting: Developers are required to provide regular updates on the progress of their projects to buyers and RERA. This transparency allows buyers to track the project’s development and ensures that any issues or delays are addressed promptly.