The UAE real estate sector is built on strict regulatory compliance, designed to protect buyers, investors, and the overall market. For Indian developers, understanding these regulations is not optional it is foundational to operating in the UAE.
Table of Contents
Role of Real Estate Regulators
In Dubai, the market is regulated by the Real Estate Regulatory Agency (RERA) under the Dubai Land Department. These authorities oversee:
- Developer licensing
- Project registration
- Sales and marketing approvals
- Escrow account compliance
Abu Dhabi follows a similar regulatory approach through its municipal authorities.
This Article is a Part of Our Why Indian Real Estate Developers Are Expanding into the UAE Blogpost.
Escrow Accounts and Off-Plan Sales
One of the most critical regulatory requirements is the mandatory escrow account for off-plan projects. Buyer funds must be deposited into a regulated escrow account and can only be withdrawn in line with construction progress.
This mechanism:
- Protects buyers
- Prevents fund diversion
- Enforces construction discipline
Failure to comply can result in penalties, suspension, or project cancellation.
Buyer Protection and Compliance Obligations
UAE regulations also govern:
- Advertising and marketing disclosures
- Sale and purchase agreement (SPA) terms
- Project delays and cancellation procedures
- Developer obligations post-handover
Compared to many other markets, enforcement in the UAE is active and institutionalised, making compliance a commercial necessity.
