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November 6, 2025

Buying Property in Dubai: Key Risks You Need to Know

The Dream of Luxury — and the Bitter Reality

Imagine holding an exclusive brochure showcasing an off-plan property in Dubai — with a spectacular view of the majestic Burj Khalifa. The images convey not just luxury, but also the promise of a bright future where your investment grows steadily and generates attractive returns.

With great anticipation and confidence in a promising future, you proceed with the purchase. But as completion approaches, an unpleasant surprise awaits: a massive new building blocks your once breathtaking view, and the value of your property drops rapidly. Your dream of a lucrative investment is literally built over.

This scenario is not unique and highlights why buying property in Dubai, particularly off-plan, carries significant risks. It’s not enough to be dazzled by stunning visuals or promised appreciation — every detail must be carefully reviewed before committing your capital.

Protection Against Unpleasant Surprises

These surprises can be avoided. One way to protect yourself is to investigate the surrounding area for potential construction projects. An experienced real estate agent can help determine if a “no build zone” exists on nearby land that could block your view. These legal designations prevent further construction in designated areas and safeguard your outlook in the long term.

Check Zoning Plans and Building Regulations

By reviewing zoning plans and building regulations, you can ensure that future construction won’t impact your property’s value or your view. Taking this step reduces potential risks and provides security before investing in an off-plan property.

Key Questions Before You Buy

  • What guarantees exist regarding construction quality and completion?
  • What is the location and surrounding infrastructure like?
  • Who is the developer and what is their reputation?
  • Are there any hidden costs?
  • What do the contractual agreements entail?

Major Risks When Buying Property in Dubai

False Promises and Unrealistic Return Expectations

The Dubai real estate market attracts buyers with the promise of high returns and quick profits. However, not every developer delivers on their promises. Exaggerated return projections are a clear warning sign. Understanding market mechanisms, property laws, and the specific rules for foreign buyers is essential to avoid poor investments.

Example: A developer promises an 8% annual return, while similar properties on the market yield only 4–5%. It is critical to investigate what lies behind such claims and whether the promise is realistic.

Excessive Discounts and Misleading “Best Price” Offers

Discounts of up to 40% may sound tempting but can hide price manipulation or inaccurate calculations. Rather than being blinded by apparent bargains, always conduct an objective price comparison. Authentic real estate offers can only be identified through thorough research and transparent providers.

Quality Issues and Construction Deviations

When buying off-plan properties in Dubai, there is a risk that actual construction quality differs from the promises and contractual standards. Low-quality materials may be used, and building or safety regulations may not be fully adhered to. Such deficiencies can affect both aesthetics and functionality, significantly impacting long-term value and usability.

Planned communal facilities, green areas, or parking may be reduced or eliminated, and delays due to construction defects are not uncommon. Thoroughly researching the developer’s previous projects, construction quality, and reliability is essential. Testimonials and reputation provide valuable guidance for trusting a developer and mitigating risk.

Overpriced Properties and Lack of Market Transparency

Property prices in Dubai do not always reflect actual market value. Prices are often inflated to create an impression of exclusivity or to entice investors with perceived bargains. Overvaluation can lead to overpayment. Off-plan projects often lack transparency, as final market prices are only clear after completion.

Independent expert evaluations are essential to determine realistic property value and prevent overpayment. Comparing with similar properties in the same area with comparable features is highly recommended.

Limited market transparency may also mean that future development or infrastructure projects are not disclosed. Understanding market conditions and development prospects is therefore critical before investing.

How to Protect Yourself — Proven Strategies

Comprehensive Research and Due Diligence

Before investing, verify building permits, analyze the surroundings, and assess the developer’s credibility to avoid hidden risks.

Work with Experienced Real Estate Professionals

Rely on experienced agents and developers who know the market and work transparently. The right partners help you avoid unforeseen risks and make well-informed decisions.

Contractual Protection via the Dubai Land Department

Ensure all important points — guarantees, payment terms, property rights — are formalized in contracts. Legal advice may be useful to secure your rights. The Dubai Land Department oversees property registration and provides security for your acquisition.

Market Monitoring and Identifying Growth Areas

Keep track of the Dubai property market and infrastructure development. Recognize growth areas like Downtown Dubai or Dubai Marina to make targeted investments and benefit from future developments.

Other Key Aspects of Buying Property in Dubai

The Importance of Location for Real Estate Investments

The location of your property is decisive for its long-term value. Excellent public transport, high-quality shopping, and reputable schools all contribute to sustaining your investment.

Tax Benefits and Legal Framework for Foreigners

Dubai offers tax advantages, including exemption from property and rental income taxes. Nevertheless, check your obligations in your home country and ensure all legal requirements are met.

Off-Plan Properties — Opportunities and Challenges

Off-plan properties offer attractive entry prices but involve risks such as delays or project changes. Carefully reviewing payment terms and contracts is essential.

Rental Income from Real Estate in Dubai

Renting out your property can generate attractive income. Understand legal requirements and tax implications, particularly in your home country, if you reside outside Dubai.

Conclusion:

Overcome risks and seize opportunities with vision and expertise

Buying real estate in Dubai offers tremendous opportunities — if you understand the risks and actively manage them. Rely on transparency, deep market knowledge, and the support of experienced partners to make your investment both secure and profitable.

The Real Estate Blondies provide expert guidance and exclusive services, so you can confidently enter Dubai’s real estate market. Let’s work together to ensure your investment thrives safely in the long term. Contact us today to explore your options!

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