To protect investors from the risks associated with construction in progress, the Dubai government has taken a number of effective and very efficient measures.
How Dubai Protects Off-Plan Property Buyers From Unfinished Construction
There have been cases of unfinished construction in Dubai in the past, but today there are strict rules in place to help prevent such problems.
Actions taken
The first measure taken by the government is the requirement from the developer to provide a bank guarantee for the start of construction of the facility. This confirms the availability of sufficient funds for the implementation of the project and provides protection for investors in case of problems.
The second measure that helps to avoid unfinished business is to conduct transactions through escrow accounts.
This is a special account into which the investor deposits money, and the money is released to the developer only after the completion of a certain stage of construction and obtaining permission from the Dubai Land Department (DLD).
The third measure taken by the government is the scrutiny of developers by the Dubai Land Department or DLD. In the event of any funding issues or construction delays, the Department may revoke a developer's license. Even if the developer loses the license at the time of construction, DLD will transfer the object to another developer for completion.
Advantages
These measures ensure that investors in Dubai receive their investment even if the project is not completed on time. Thanks to this regulation, Dubai continues to be one of the most attractive areas for real estate investment in the world.
Are you considering Dubai as a permanent residence or a profitable investment? Contact us and we will promptly select investment-attractive apartments in Dubai for your budget: both for personal residence and for rent, and show specific profitability calculations for them!
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