Truth about Dubai property: As Iran war grows in the region.

‘For ready-to-move-in properties, once a Sale and Purchase Agreement is signed and a deposit paid (typically five to 10 per cent), withdrawing usually results in forfeiture of the deposit,‘ says Elias Hannoush, managing director of Morgan‘s International Realty.

‘If transfer has been registered with the Dubai Land Department, backing out becomes legally complex and may involve penalties.

‘For off-plan properties, buyers are typically bound by the developer‘s Sale and Purchase Agreement.

‘If construction has commenced and payments are underway, cancellation is usually subject to penalties and may result in partial loss of funds.

‘UAE real estate law does provide structured mechanisms for cancellation if a developer fails to meet contractual obligations, but voluntary withdrawal by the buyer generally comes at a financial cost.‘

As of 2025, the Real Estate Regulatory Agency (RERA) Refund Rules for Off-Plan Property Cancellation indicate that if a project is less than 60 per cent complete, the developer may retain up to 40 per cent of the total contract value.

If the project is 60 per cent or more complete, the buyer can claim the remaining 40 per cent refund.

Should the project be 80 per cent complete or more, the developer is entitled to ask the buyer to follow the terms of the sale contract, and seize the paid amount.

For those wishing to withdraw from off-plan property investments, Go Dubai Real Estate advises reviewing the Sales and Purchase Agreement (SPA) carefully, looking especially at clauses related to cancellation, penalties and force majeure.

The Oqood registration acts as the official record of your transaction with the Dubai Land Department (DLD). If your property isn‘t registered in the Oqood system, your rights as a buyer are significantly weaker.

A formal written notice (such as an email or registered letter) should then be drawn, stating the intended reason for cancellation.

‘For buyers who want to exit a purchase now, the most practical option is usually to approach the developer or broker early and explore whether the contract can be reassigned or the unit resold to another buyer,’ says Riccardo Zappia at Tyron Ash International Real Estate.

‘In some cases developers will allow a transfer of the unit once a certain percentage of the price has been paid, although administrative fees normally apply.

‘My general advice to buyers is not to panic. The Dubai property market has historically proven to be resilient during periods of regional uncertainty, and many investors who hold their positions ultimately benefit from the long-term growth and rental yields the market offers.

‘Buyers concerned about their position should review their SPA carefully and seek professional advice before making any decision to exit.’

That said, it‘s difficult to believe that the recent shocks won’t have a significant effect on buyers wishing to invest and settle down in the emirate.

However, few people in Dubai feel they can talk openly, as the UAE authorities have warned that posting negative stories could lead to prosecution.

‘If uncertainty persists, we may see longer negotiation periods, more selective buying, and a slight moderation in price growth rather than outright declines,‘ says Mr Hannoush.

‘Dubai‘s property market today is more regulated and transparent than in previous cycles, and escrow laws for off-plan projects provide buyer protection.‘

Nine tenths of the 3.4million population are foreign nationals – many being internationally mobile expats – and therefore do not have deep, emotional bonds to keep them in the country should tensions escalate or persist.

This will inevitably impact the property market, perhaps rather more significantly than Elias Hannoush predicts – particularly as ratings agency Fitch Ratings predicted last May, long before the current troubles, that prices could fall by as much as 15 per cent due to an oversupply of properties.