The Informed Investor · Chapter Ten
Understanding where your money goes before the property is built.
For off-plan real estate in Dubai.
You make an off-plan payment. Where does it go?
In Dubai, payments for off-plan units are deposited into a project-specific escrow account.
The account belongs to the project
- Project-specific — Each development has its own escrow account.
- Dedicated — The account is used for the development of that project.
- Separate from developer creditors — Amounts in the account cannot simply be withheld for the developer’s creditors.
Not simply because a payment was made
The escrow agreement sets out major construction stages. When a milestone is completed, the developer requests payment. The escrow trustee’s engineer checks the site, and only after verification can payments be released to relevant service providers.
Money releases in step with verified construction progress.
The system doesn’t stop at the account
DLD provides a project-status tracking service through which you can access information including the project’s status and reported completion percentage.
Before making the next payment, know where the project stands.
If a project cannot be completed
Law No. 8 provides mechanisms for an emergency situation in which a project cannot be completed. The escrow agent, after consultation with DLD, must take measures aimed at protecting depositors’ rights — ensuring completion of the project, or refunding payments.
That is protection within the escrow framework — not a guarantee that every problem disappears. It does not remove investment risk, eliminate delays, settle quality disputes, or determine whether the property itself is a good investment.
Escrow can structure the risk around your money. It cannot decide whether the property is worth buying.
Understanding where your money goes is part of understanding the investment.
Next chapter: RERA — the framework around the market.
If this question applies to your own situation, we are happy to talk it through. Start a conversation
The chapter as published
