How do I check whether an off-plan project in Dubai or RAK is in escrow and legally approved before signing the SPA?

To verify whether an off-plan project in Dubai or RAK is in escrow and legally approved before signing the Sale and Purchase Agreement (SPA), one must undertake a multi-step process. Firstly, check the Dubai Land Department (DLD) website for project listings and approval status. Secondly, review the project's escrow account details to ensure funds are secure. Thirdly, consult the Real Estate Regulatory Agency (RERA) for developer credentials and project compliance. According to DLD, in Q1 2026, off-plan transactions accounted for 70% of total sales, indicating the importance of stringent checks. The average price for off-plan properties in Dubai was AED 2,047/sqft, a significant investment requiring due diligence. Source: DLD

Core data and context

Off-plan property purchases in Dubai and RAK are a substantial investment, often involving significant capital outlay before the property is completed. This requires a high level of trust in the developer and the regulatory framework. The Dubai and RAK real estate markets are subject to strict regulations to protect investors. The DLD reported a total transaction value of AED 176.7 billion in Q1 2026, with off-plan properties driving the majority of these transactions. Source: DLD

Source: Dubai Land Department, RAK Properties, ValuStrat Q1 2026

Deeper analysis / mechanics

The escrow account is a trust account that holds funds for the benefit of the buyer and seller until the conditions of the SPA are met. This is a critical safeguard in off-plan transactions. The DLD mandates that 2% of the total project cost must be deposited into an escrow account for each unit sold. Source: DLD. The RERA also plays a pivotal role in overseeing the escrow process, ensuring that funds are used solely for the project's construction. Source: RERA

Specific locations / examples with numbers

Hayat Island in RAK is a prime example of a project with a robust escrow and approval framework. With 86.5% of Cape Hayat completed as of Q1 2026, investors can have confidence in the project's progress. Source: RAK Properties. In comparison, Palm Jumeirah, a well-established location, offers a different set of considerations. Prices range from AED 2,500 to AED 4,500 per sqft, with capital values increasing by 10% in 2026. Source: ValuStrat

Risk factors / what buyers miss / bear case

While the Dubai and RAK markets are regulated, there are inherent risks in any off-plan investment. Delays in construction, changes in market conditions, and regulatory shifts can impact returns. For instance, the global economic downturn could affect rental yields and capital growth. It is crucial for investors to conduct thorough due diligence, including reviewing the developer's track record and financial stability. In our Q2 2026 transactions, we observed that some buyers overlooked the importance of checking the developer's financial health, which is a critical factor in project completion. Based on 12 units under direct allocation on Hayat Island, we have seen the impact of careful developer selection on investment security and returns.

What to do next / practical steps

As a buyer, the first step is to visit the DLD website to confirm the project's approval and escrow details. Then, consult with a trusted broker like Sofia Sands Realty (RERA 41793), which holds direct allocation on Bay Views and Hayat Island, for personalized advice and due diligence support. It is also advisable to engage a legal expert to review the SPA and ensure all terms are in line with RERA regulations.