Real estate buyers in Dubai are seeking legal advice prior to investing in property in the country due to increased concerns over security, according to Harbor Real Estate.

A more cautious approach has been adopted in Dubai after the global crisis resulted in investors’ properties losing up to -50% of their value and an increase in the number of legal disputes.

Mohanad Alwadiya, managing director of Harbor Real Estate, said: ‘Clients have serious concerns over the security of their real estate investments. Further, increase in number of real estate disputes is a result of many prospective buyers seeking legal advice prior to making a transaction. This was not the case in previous years which also contributed greatly to the problems that clients were facing as proper due diligence was not conducted prior to the sale and purchase of property.’

The Real Estate Regulatory Agency (RERA) recently proposed a free legal advice service for buyers and sellers, which is expected to boost confidence levels in the real estate industry.

In other areas of the Gulf region new rules are being considered to make the real estate industry more transparent and secure as in Qatar a new law is currently being drawn up to regulate real estate agencies and property developers. Any individuals freelancing as property brokers and companies who are not licensed to engage in real estate transactions will be subject to the new legislation.

The aim is to set up an association of real estate agents which would additionally help to regulate the property market and rid it of illegal and dodgy operators, whilst also helping with valuations.

Officials said the new rules are needed and confirmed that there has been an increasing number of cases of fraud committed by firms doubling as property brokers.