Why Dubai Needs Rules for Developers and Agents

Dubai's freehold market has grown remarkably quickly since foreigners were allowed to own property in designated areas. New developers are launching projects, agencies are opening by the dozen and buyers are arriving from around the world. Regulation, however, has not kept pace. There is no comprehensive licensing system for developers, no formal requirement to protect buyers' payments and limited oversight of estate agents. As the market grows, these gaps become more important.

What good regulation would provide

• Developer licensing: minimum standards of capital, experience and approvals before a developer can sell.
• Escrow accounts: buyers' payments held for the specific project and released as construction progresses.
• Agent registration: licensed brokers with professional standards and accountability.
• Standard contracts: clear terms on delays, specifications and cancellation.
• A dispute process: a quick, accessible way to resolve disagreements.

Why it matters now

When markets grow quickly, weaker players are attracted by easy sales. Some may lack the experience or finance to deliver. Buyers who pay instalments to such developers are exposed if projects stall. Good regulation protects both buyers and the market's reputation.

Signs of progress

The authorities are aware of these issues, and the leading developers have an interest in a well-regulated market that protects confidence. We expect rules on developers, escrow and agents to be introduced over the next few years, as has happened in other markets that opened to foreign buyers.

What buyers should do until then

Until regulation is in place, buyers must rely on their own due diligence. That means choosing developers with strong backing and completed projects, verifying land ownership and approvals, preferring payment plans tied to construction progress and using independent lawyers. Buyers should be cautious about agents who push for quick decisions or who cannot explain the details of a project clearly.

The role of agents

A good agent can be invaluable to an international buyer, providing local knowledge and helping with practicalities. But in an unregulated market, standards vary widely. Ask for references, check the agent's experience and make sure you understand how they are paid.

Our view

Regulation will make Dubai's property market stronger, more transparent and more attractive to cautious international investors. We welcome every step in that direction and encourage clients to apply rigorous standards of their own in the meantime.