More Developers, More Choice: Dubai in Late 2001

A year ago, a buyer interested in Dubai's new communities had very few options. Today the picture is changing. Emaar's villa communities are attracting strong interest, and other government-linked and private developers are preparing their own projects, from waterfront schemes to land reclamation. Competition is good for buyers, but it also makes it more important to judge developers carefully.

What competition brings

• More choice of locations, home types and price levels.
• Better design and amenities as developers try to stand out.
• Attractive payment terms to win buyers early.

The risks of a crowded market

When many developers launch projects at once, not all of them will have the financial strength and experience to deliver. Construction costs can rise as contractors become stretched, and timelines can slip. Buyers who pay instalments for homes that are not yet built are exposed to these risks, particularly in the absence of strong legal protections.

How to compare developers

• Track record: have they completed projects before, on time and to standard?
• Financial backing: are they linked to the government or to established groups?
• Land and approvals: do they own the land and have the necessary permits?
• Payment structure: are payments linked to construction progress?
• After-sales: who will manage the community once it is complete?

A market still finding its rules

Dubai does not yet have a comprehensive regulatory framework for developers selling homes off-plan. That makes buyer due diligence essential. We expect the authorities to introduce rules on developer licensing and the handling of buyers' funds as the market grows, but until then, buyers must protect themselves.

Reading a sales brochure critically

As competition increases, marketing materials become more elaborate, with artists' impressions, lifestyle photography and ambitious promises. Buyers should read them carefully. Images often show the finished community years ahead, with mature landscaping and completed facilities. Distances may be measured in driving time under ideal conditions. Amenities may be planned but not yet funded. The most useful questions are practical: When will my building be completed? What will be finished around it at that time? What exactly is included in the specification? A good developer will answer these questions clearly and put the answers in writing.

Our view

We welcome the growth in choice and believe it will help Dubai's market mature. Our advice is to favour established developers with strong backing, to choose projects where land and approvals are secure and to insist on independent legal review of every contract.