Real estate investment in Dubai: what is an "escrow account"?
Investor safety is the priority of the Dubai Land Department. The Dubai Land Department, also known as DLD, is thegovernment agency responsible for all real estate matters in Dubai. Dubai Immo explains in this article how theescrow account protects your investment.
Escrow Account Dubai
When you hear about an "escrow account" for a real estate investment in Dubai, it will be the bank details on which you will have to make your payment. This account is a blocked account controlled by the Dubai Land Department. The property developer cannot freely draw on this account, or use the money as he sees fit. Thus, the money paid by the buyers of the different units of a program is protected, until the delivery of the property.
Provision of funds by the promoter in the escrow account
To launch a real estate program in Dubai in 2022, developers have to show their credentials. More importantly, they must prove that they have the financial capacity to complete the project. Thus, the Dubai Land Department requires developers to pay an amount corresponding to almost all the funding needed to complete the project. This money can either come from the developer's own funds or from bank financing. As the work progresses and under the control of the Dubai Land Department, the developer can recover part of its funds.
All risk insurance for your real estate investment in Dubai
The escrow account system ensures the protection of your funds until the property is delivered by the developer. This handing over of the keys can only take place after a very strict control by the Dubai authorities. The developer does not wait until after your payments to finance the construction, as he has advanced almost all the funds needed to complete the project before the start of the marketing. Payments for your Dubai real estate purchase must be made to the escrow account in the name of the project.
Guillaume Giroux, Dubai Immo founder and real estate expert, Dubai, UAE
As founder of the Dubai Immo Group and a real estate investor, I bring you daily updates on the Dubai market. My aim is to provide you with all the keys you need to invest wisely and securely, by sharing my in-depth analysis and strategic advice.
