New Dubai rental scam: Expats frustrated after 'agents' collect deposits, then vanish

Khaleej Times

6 hours ago

For many expats moving to Dubai, finding affordable housing is one of the top priorities as they try to balance city life with tight budgets. But in the rush to lock in a budget-friendly room or flat, some are paying a steep price — losing their hard-earned money to rental scams that seem to be on the rise.
In the UAE's fast-paced real estate market, where listings come and go in a flash, the high demand for affordable housing have created opportunities for fraudsters to exploit unsuspecting tenants.
One such victim is V.S., a dental assistant from India who recently moved to Dubai. Eager to find a room that wouldn't drain her limited savings, she came across an attractive offer on Facebook marketplace. The room, which was in the vicinity of BurJuman Mall, was within her budget and close to her workplace. It seemed perfect.
Afraid she might lose the deal to someone else, V.S. quickly transferred Dh500 as a 'booking fee' to the supposed agent. "It all felt very urgent. I didn't want to miss out,' the 23-year-old said, explaining that these listings are usually first-come, first-serve. However, after sending the money, the agent disappeared.
V.S. isn't alone. Noura, a 28-year-old Tunisian expat, shared a similar experience — except she got scammed twice. Drawn in by a listing on a Facebook group for an apartment in Barsha, she was first told that she needed to pay Dh500 to book the place. Negotiating the amount to Dh300, she sent the money — only to discover that the agent had blocked her immediately after. She had no way to to contact him or get her money back — let alone a house.
The second time, she responded to another listing for a conveniently located apartment in Dubai Marina with easy access to the tram and metro. This time, she wired Dh1,000 to reserve the room. "It seemed like a great deal," she explained. "The photos and the videos I received seemed genuine, but the real estate agent stopped replying altogether."
Filipino expat Liz Ramos (name changed on request) told Khaleej Times how she backed out of a conversation, when she sensed a trap. Back in April, while hunting for a place, she inquired about a listing that looked promising. The landlord noted that she was based in the UK, but looking to rent out one of the two bedrooms in her apartment.
When the Dubai resident asked to view the place in person, however, the landlord tried to offer video tours instead. "She kept saying she was overseas and had the keys, but could send me videos instead. She also kept trying to redirect me to Booking.com to complete the transaction there. If I could not view the apartment because the keys were with her in the UK, how would I have moved in at all?" Liz asked.
The whole thing seemed shady and raised red flags for the expat, who said she's had one too many unpleasant experiences with unscrupulous real estate agents to engage further.
Bait-and-switch tactics
Some scams go even further, with tenants being deceived into moving into shared apartments under the illusion of legitimacy, only to discover they're living in an illegal or unsustainable setup.
That's exactly what happened to Karthika, a 26-year-old digital marketing professional from India who moved to Dubai in July 2024. She came across a listing on Dubizzle for a two-bedroom sharing apartment near her office on Sheikh Zayed Road. After viewing the flat in what seemed like a secure, gated building, she felt reassured.
'It was a nice building,' she recalled. 'You needed an access card to enter the building, which the agent said would be given once I moved in.'
Karthika says she expected she would rent out one room, while a roommate took the other. Instead, she discovered the apartment already had six women living there; two in each bedroom and three in a partitioned hall. 'The women in the bedrooms were paying Dh2,200 each. Two other women and myself were offered the partitioned hall for Dh1,800 each. We all had to pay Dh1,000 as deposit as well. However, problems started almost as soon as I moved in," she shared.
"We had to sneak into our own apartment sometimes as guests of other houses," she added, noting: "At other times, we spent up to two hours in the lobby, waiting for someone to go into the building so we could slip in through the access gates along with them."
Soon, the situation became even more troubling. Karthika learned from the other women that they had been dealing with the same issues "the entire time they were staying there". The agent discouraged them from going out unnecessarily, suggesting they order food and groceries in, likely to keep building security from noticing the over-occupancy.
"I moved out immediately and tried to recover the Dh2,800 that I had paid him upfront. However, he stopped picking up my calls. A month later, I was told by the other tenants that they were asked to vacate the flat in the middle of the night," she said, noting that the other women had lost all their money as well, since the agent blocked them all on his phone.
"I am sure he is repeating the scheme with other people. Along with the deposits, he had made a total of Dh21,200 in just the first month. Once people move out, he can earn the same with another group of unsuspecting people," she added.
Hotbed for rental scams
Social media platforms like Facebook and listing websites such as Dubizzle have become hotspots for such scams, offering fraudsters easy access to a steady stream of house-hunting expats.
Recently, Dubai Police arrested a fake agent who was posting fraudulent rental ads on social media and websites, targeting residents looking for budget-friendly housing. The authorities have urged the public to stay vigilant and report suspicious activity.
Due to the rise in such scams, licensed real estate agents like Joshua Barnes say the market is becoming more difficult to navigate. 'People are now overly cautious — understandably so — which, in turn, unfortunately means they lose out on renting a home for themselves due to time constraints and multiple other prospective tenants vying for the same properties,' he explained.
'Some even request to view ownership documents or Emirates IDs of landlords before any deal is signed, which complicates legitimate transactions and slows down the process," added the 28-year-old specialist property consultant at Nomad Homes.
While caution is warranted, Barnes said it's also adding friction to legitimate transactions.
How to protect yourself from such scams
The DLD and industry experts offer the following recommendations to avoid falling victim to rental fraud:
Work with Rera-certified agents and legal professionals: Certified advisors help ensure compliance with regulations and safeguard your investment.
Conduct detailed due diligence: Always verify the credentials of developers and confirm the project's approval status.
Stay informed about ownership zones: Recent reforms allow for broader foreign ownership. Know which areas are eligible and what conditions apply.
Use official digital tools: The upgraded Dubai REST platform and DLD apps allow users to check property titles, track transactions, and access market data in real time.