Offplan Real Estate in Dubai | What a Developer is Required to do

All the requirements for a developer to start a project and sell properties within it in the Dubai real estate market.

A developer looking to sell off-plan properties must obtain a permit from DLD to authorize marketing related to it. This is to reduce unqualified developers and fraudulent projects.

A Trust Account (Escrow account) must be opened into which must be deposited all money received from buyers or financiers and any money advanced by a bank or financial institution as finance for the developer.

A Trust Account opened with an approved provider (known as the Account Trustee) is necessary before a developer can launch a project and sell off-plan.

Law No. 8 of 2007 introduced the system of Trust Accounts (and the need for RERA to administer the system as a formal regulatory body).

The Trust Account must be opened in the name of the project (can contain one or more buildings) and can be used only for the purposes of the registered project. A developer with multiple projects must therefore open a separate independent account for each one. Amounts deposited in the Trust Account can’t be used as security for the creditor of the developer.

Release of funds is only permitted according to the certified progress of the project through RERA and other limits in place for releasing funds.

After obtaining permission from RERA, a developer can advertise in local or foreign media or at exhibitions.

A special register (The Developers Register) is kept by RERA with names and details of all developers licensed to conduct these activities in Dubai.

A similar register (Trust Account Trustee Register) is also kept for names of financial institutions who are allowed to act as trustees. They must meet certain criteria to be maintained on this register.

Interim Real Estate Register – Every sale of an off plan property must be registered here under an ‘oqood’. This is to prove ownership.

A Developer must (under Law 8 of 2007):
o Obtain approval of Development Plans (through Dubai Municipality or other competent authority)
o Obtain approval from DLD of details CAD drawings (used later for registering SPAs)
o Submit a copy of the RERA developer registration certificate
o Project name
o Open the trust account, and produce a copy of the Escrow Agreement
o Submit a copy of the proposed SPA
o Submit a copy of proposed marketing material
o Register any agency/broker agreement
o Evidence of owning the site and obtaining all necessary approvals (Law 13 of 2008)
o Have a title deed and completion of 20% construction before selling, or payment of bank guarantee for 20% of the construction value to RERA

A Developer can have their license cancelled:
o If they go bankrupt
o Construction isn’t started within 6 months of being granted approval to sell off-plan (unless with an acceptable reason for RERA to determine)
o If the licensing authorities cancel it
o If they violate law or bylaws as part of regulation


Information is accurate as per the date of upload.

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