5 Dubai Real Estate Scams You Didn’t Know About

Are you thinking about investing in Dubai’s real estate? With its stunning skyscrapers and beautiful properties, it’s no surprise that people from around the world want to invest here. You could even enjoy tax-free gains. But before you jump in, there are some important things to know.

In this blog, you will explore the 5 biggest scams that could trick you in Dubai’s real estate market. These scams can catch even the most experienced investors off guard. By reading this, you will learn how to spot these tricks and protect your money. Don’t let your dream investment turn into a costly mistake. And if you're unsure where to invest, check out our Buying Property in Dubai: The 2025 Guide for Investors.

Scam # 1: Fake Listings & Phantom Properties

If you’re thinking about renting a place in Dubai, be careful of fake listings. This scam is becoming more common these days. You might find a stunning apartment in Dubai Creek Harbour for an unbelievably low price. You call the agent, and they seem friendly and professional. But then, they ask you to pay a deposit before you even get to see the place. That’s a big red flag.

In June 2024, Dubai Police caught a guy running an online rental scam. He posted fake listings on social media, pretending to be a real estate agent. When people showed interest, he asked them for deposits as a sort of security. Once he had their money, he disappeared! Many ended up losing a lot before they realized they had been scammed.

And it gets worse. Some scammers use real photos from actual listings to trick renters. They take these images, change the contact details, and post them using fake names. Often, they offer really low rent to grab people’s attention quickly. One shocking case involved someone who paid AED 14,000 upfront, only to find out that the property was already taken, and the agent was nowhere to be found.

The Dubai Land Department (DLD) is trying to tackle these scams. They’re bringing in new rules starting in 2025. Any agency that posts misleading ads could face fines up to AED 50,000. But many scammers pretend to be freelancers or "consultants," making it tricky to catch them. Learn more about avoiding misrepresented listings in our Ultimate Guide to Investing in Rental Properties in Dubai.

Scam # 2: Fake Rental Contracts & Upfront Fee Traps

Finding a nice rental that fits your budget is exciting, right? But if someone claiming to be an “agent” tells you to quickly pay a fee to secure the place, you need to be careful. They’ll pressure you, saying there’s a lot of interest in the property. But this is often a red flag!

According to a recent report from Property Shop Investment (PSI), this type of scam is very common in Dubai. Many renters fall into the trap and end up paying anywhere from AED 5,000 to AED 20,000 without getting a proper rental agreement. Instead, they just hand over money with nothing in return.

These scammers might say the fee covers things like paperwork or a registration fee. They might even send you forms that look real, but they’re actually fake. The signatures and license numbers can be forged, making them look official when they aren’t.

Sometimes, scammers pretend to be property managers and create fake rental contracts. These documents can look very convincing, complete with phony stamps and IDs. Many people realize something is wrong only when they try to register their contract and get turned away by the Ejari system.

And it gets worse! Some fraudsters also rent out shared spaces. For instance, they might take a room and collect deposits from different people all at once, making everyone think they’re the only one who secured it. There was a recent case in Al Nahda where three tenants thought they had the same room, but none of them did.

You can also compare what you’re told against tips from our blog post, Best Property to Buy in Dubai: Top 5 Investment Areas in 2025.

Scam # 3: Title Forgery & Double Sales

Title Forgery & Double Sales is a dangerous scheme where criminals sell properties they don’t own using fake documents. They deceive multiple buyers into believing they are the rightful owners.

In 2019, a major scam in Dubai involved two luxury plots on Palm Jumeirah. Nine people forged signatures and even used a decoy dressed in a niqab to impersonate the real owner. They sold the properties for Dh27 million to an unsuspecting investor, who only discovered the fraud when the Dubai Land Department stepped in. Another businessman lost Dh 938,000, thinking he was buying a legitimate property. He learned the hard way that the seller had no actual ownership.

Dubai Land Department is working smartly to combat this fraudulent activity. They even won an award for their anti-fraud efforts in May 2025. Falling for these scams can be costly, risking your money and peace of mind. If a deal seems too good to be true or if someone pressures you, it’s best to walk away.

Scam # 4: Off-Plan Investment & Refund Scams - The Samana Case

Off-plan property investments in Dubai have become very popular. They offer lower prices and flexible payment plans that attract many buyers. However, these opportunities can sometimes lead to trouble.

In 2024, many investors faced issues with Samana Developers. They paid Expression of Interest (EOI) fees, which ranged from AED 10,000 to AED 50,000. When they wanted refunds after withdrawing from projects, they found it hard to get their money back. Even though an EOI isn’t a legally binding contract, buyers suffered long delays and no refunds.

While Dubai's real estate market is thriving, it’s crucial to be careful. Always read the details and ask questions to protect your hard-earned money.

Scam # 5: Money Laundering via Dubai Real Estate

Dubai's real estate market is attractive to money launderers. Ownership records are often hidden behind complex structures, making it hard to identify true owners. Some agents even accept cash or cryptocurrency without much scrutiny. Many criminals use Dubai’s upscale real estate as a safe place to launder their illegal funds. This is a concerning trend that affects honest buyers.

In 2024, Le Monde reported that a drug gang from Marseille bought apartments in the Act One and Act Two towers for over €15 million. They used fake companies to cover their tracks.

British criminals have also been caught purchasing luxury homes in Dubai while they were in prison. One managed to build a property empire worth over £200 million this way.

Additionally, in December 2024, Dubai Police arrested a known drug trafficker, Othman El Ballouti, in his Downtown Dubai apartment. He was part of a cocaine smuggling network.

When criminals invest in real estate, it can inflate property values and destroy market integrity. This creates a challenging environment for honest buyers who may not realize they are competing with illegal money.

If you invest in a property that’s tied to criminal activities, you could face legal issues or find your investment seized. It's crucial to do thorough research and be cautious in Dubai’s high-end real estate market.

Tips to Protect Yourself from Real Estate Scams in Dubai

Whether you're buying your first home or investing for the future, it’s essential to stay safe. Here are some easy-to-follow tips to save you from real estate scams.

1. Verify Your Agent's License

Always check if your real estate agent is registered with RERA (Real Estate Regulatory Agency). Unlicensed agents can lead to big trouble. Use the “Trakheesi System” or the Dubai REST App. Also, look for a valid BRN (Broker Registration Number) and agency’s ORN (Office Registration Number).

2. Use the Dubai REST App

Before you hand over any money, download the Dubai REST app. It provides reliable property information. This way, you can:

• - Confirm if the title deed exists.
• - Check the owner’s name.
• - Ensure no mortgages or legal disputes are on the property.
• - See the completion status for off-plan properties.

3. Avoid Personal Account Transfers

Be cautious if an agent asks you to pay directly to their personal account or use cryptocurrency. Only make payments to escrow accounts approved by RERA or the developer's official business account.

4. Stick to Trusted Platforms

Scammers often use fake listings on random websites. Stick to reputable sites endorsed by the government. These platforms work directly with the Dubai Land Department and can show only verified listings.

5. Double Check NAP Details

NAP stands for Name, Address, and Phone Number. Scammers may mix up these details. Always check:

• - The agent’s company name on the DED or RERA website.
• - Their office location is shown using Google Street View.
• - Their contact information should match across different sources.

6. Be Cautious of Unrealistic Offers

If you see offers that seem too good to be true, they probably are. Deals promising high returns in a short time or luxury properties at huge discounts should raise red flags.

7. Get Legal Advice

Before signing any contracts, it’s wise to consult a licensed real estate lawyer. They can help review important documents like:

• - Sale agreements
• - Escrow details
• - Off-plan contracts
• - Payment schedules

Conclusion: Stay Smart, Stay Safe from Real Estate Scams in Dubai

In short, investing in real estate in Dubai can be a smart move, but it’s essential to stay cautious. Always do your homework and ask questions if something doesn’t feel right. Verify information through official channels and only engage with registered agents.

If you’re ever in doubt, contact us. We can guide you through the process and help you make informed decisions.

Remember, the property market can seem overwhelming, but with the right support, you can navigate it confidently. Don’t rush into any deals - take your time to ensure you’re making the right choice for your future.