Short answer: the main risks are delivery delays, a fall in prices before handover, oversupply when many projects complete together, and running short of money for the final payment. Dubai’s escrow law protects off-plan payments from misuse, but not from these. Most risks can be reduced by choosing the developer and payment plan carefully and paying only into escrow.
Updated 18 Oct 2026. Reviewed by the Vidabricks advisory team. Not financial or legal advice.
Risks and how to reduce them
| Risk | What can happen | How to reduce it |
|---|---|---|
| Delivery delay | Completion slips months or years | Check the developer’s past delivery dates; read the SPA delay clause; prefer projects already under construction |
| Price correction | Value at handover below the purchase price | Buy below the area median; avoid stretching to the top of your budget; hold for 4–6 years |
| Oversupply at handover | Many units compete for tenants at once | Check how many projects complete in the same area and year; prefer smaller buildings or established areas |
| Paying outside escrow | Money is not protected by Law No. 8 of 2007 | Pay only into the project’s escrow account named in the SPA |
| Default on instalments | The developer can cancel and keep part of the payments | Match the plan to your cash flow; keep a buffer for the handover payment |
| Financing at handover | The bank lends less than expected or rates rise | Get a mortgage pre-approval before committing to a 70–80% handover payment |
| Specification changes | The finished unit differs from the brochure | Rely on the SPA’s specifications, not marketing images; inspect at handover |
| Service charges | Annual costs reduce your net yield | Ask for the expected service charge per sq ft before buying |
| Currency | Your home currency moves against the dirham | The AED is pegged to the US dollar; buyers in other currencies carry exchange-rate risk |
Where the risk is highest now
- 2027–2028 completions: 434 of the 618 off-plan projects in our catalogue are due in those two years.
- Market timing: in May 2025 Fitch Ratings said a price correction of up to 15% was possible as handovers peak (Khaleej Times).
- Upfront-heavy plans: projects completing in 2030 ask on average 67% before handover (payment plans index), so more money is exposed for longer.
For the case in favour, see is Dubai real estate a good investment?
Frequently asked questions
What is the biggest risk of buying off-plan in Dubai?
Delay and market risk: the project may complete later than promised, and the value at handover may be lower than you paid. Escrow protects your payments from misuse but not from delays or price changes.
How can I reduce the risk of a Dubai property purchase?
Check the developer's track record and the project's DLD registration and escrow account, pay only into escrow, prefer handover-weighted plans in high-supply areas, and plan to hold for several years.
Can I lose my deposit on an off-plan purchase?
If you stop paying instalments, the developer can cancel the contract and keep part of what you paid under Dubai's rules for defaulting buyers. Read the SPA's default clauses before you sign.
