Dubai Real Estate Developers offering Ultimate Guarantee

Few of the developers of Dubai are giving 100% guarantee for the construction. According to regulatory authority of real estate agency, it is the ultimate guarantee any developer can provide.

The CEO of the respective real estate agency revealed that DH 29 billion are being held as a security for the accounts which depicts the confidence of investors and developers in the market.


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It is mandatory for each developer to open a security account according to the law no.8 of 2007 which is concerned with insured accounts for real estate developments in which all the payments received from the investors are deposited. After having met the required percentage of a projects construction, money is released by RERA (Real Estate Regulatory Agency) after assessing it. RERA chief said that they are not afraid of their projects being stalled as developers are launching projects to build them instead of having the idea only to sell them.

As soon as the project gets near completion, the developers starts looking for selling them in order to complete it. It shows the maturity of the developers over the time.


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100% of the land cost is to be paid by the developers amongst the guarantees sought; a minimum of 20% of the construction cost is to be deposited with RERA with the contractors having to pay another 10% of the construction cost.

In initial quarter of 2016, 38 new projects were launched in Dubai and during 2015, 46 projects were completed. Dubai land department has reported property transactions worth Dh 55 billion over all the categories in the initial quarter of 2016.


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Investors have now become smart and are eager to know about the materials that are used, and also regarding finishes and service charges that were not used earlier. The RERA chief previously wanted developers to slash the service charges down by way of allocating a part of built-up area in their projects in order to generate revenue.

Developers can allocate some of the built up area for generating revenue, beginning with 50% of service charge going up to 70% to be covered form this asset and not from the investor. Thus, the investor will be paying 30%.

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