The Exact Underwriting Checklist We Use Before Approving Any Project in Dubai

Dubai’s real estate market is often described as a gold rush. The skyline changes monthly, off-plan projects sell out in hours, and the potential for high returns attracts investors from every corner of the globe. But where there is high reward, there is risk.

For every headline-grabbing success story, there are quiet failures—projects that stalled, yields that never materialised, or partnerships that soured because the groundwork wasn’t laid correctly. The difference between a landmark investment and a cautionary tale almost always comes down to one thing: rigorous underwriting.

At Mafhh, we do not rely on glossy brochures or sales pitches. Before we even consider a joint venture or an off-plan opportunity, we subject the project to a forensic level of scrutiny. We believe that protecting capital is just as important as growing it. This philosophy is the backbone of our operations, ensuring that when we present an opportunity to a landowner or investor, the heavy lifting has already been done.

Here is the exact underwriting checklist we use to separate high-potential reality from hype.

Step 1: Legal and Regulatory Due Diligence

In Dubai, the regulatory framework is robust, but it requires precise navigation. We never assume compliance; we verify it. A project might look viable on paper, but if the legal foundation is shaky, the entire structure is at risk.

Our first step is a deep dive into the legal standing of the plot and the partners involved. We examine the title deeds to ensure there are no encumbrances or disputes. We verify strict compliance with the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA).

Key checks include:

• Title Verification: Confirming ownership clarity and ensuring the land is free from liens.
• Escrow Account Validation: Ensuring the project has a RERA-approved escrow account, which protects investor funds by ensuring they are used solely for construction.
• Permitting Status: Checking that the initial approvals for land usage and zoning align with the proposed development.

If a project cannot pass this initial legal stress test, we walk away immediately. Trust is our currency, and we cannot build trust on a shaky legal foundation.

Step 2: Financial Feasibility

Once the legalities are cleared, we turn to the numbers. A beautiful architectural concept means nothing if the mathematics behind it don’t add up. We strip away the marketing optimism and look at the raw data to determine the project’s true financial health.

This stage involves complex financial modelling. We are looking for a realistic Internal Rate of Return (IRR) and a healthy cash flow projection that accounts for market fluctuations. We don’t just look at the best-case scenario; we look at the ‘likely’ and ‘worst-case’ scenarios too.

Our financial scrutiny covers:

• Construction Cost Analysis: Are the estimated costs aligned with current market rates for materials and labour? Underestimating these is the most common cause of project stalls.
• Exit Strategy Valuations: We assess the projected sales prices against current market comparables, not speculative future bubbles.
• Profit-Sharing Structures: For our joint venture projects, we analyse the equity split. Does the deal offer a fair balance of risk and reward for the landowner, the developer, and the investor?

We aim to structure deals where profitability is not just a possibility, but a calculated probability.

Step 3: Market Analysis

Dubai is not a monolith; it is a collection of distinct micro-markets. What works in Downtown Dubai might fail in JVC, and vice versa. Our underwriting process involves a granular analysis of the specific location and product type.

We evaluate the supply and demand dynamics of the specific district. Is there an oversupply of luxury one-bedroom apartments in the area? Is there a shortage of family-centric townhouses? We look for gaps in the market where high-yield opportunities exist.

We analyse:

• Demographic Trends: Who is moving to this area? Young professionals, families, or short-term tourists? The product must match the resident.
• Infrastructure Development: Are there upcoming metro stations, schools, or malls planned nearby? These capital drivers significantly impact long-term appreciation.
• Rental Yields: For investors seeking passive income, we analyse current rental performance in the area to project realistic ROI.

By understanding the micro-economics of the neighbourhood, we ensure that the project will have a ready market upon completion, whether for resale or rental.

Step 4: Partner Vetting

Real estate is ultimately a people business. A project is only as good as the team executing it. This is perhaps the most subjective yet critical part of our checklist. We need to know exactly who we are getting into business with.

At Mafhh, we pride ourselves on facilitating joint ventures that work. This requires vetting the developer’s track record, the contractor’s reliability, and the consultant’s expertise. We look for partners who have delivered before—on time and to the promised quality.

Our vetting process asks:

• Track Record: Has this developer completed projects successfully in the past? What is their reputation in the market?
• Financial Stability: Does the partner have the liquidity to navigate cash flow tight spots during construction?
• Operational Capacity: Do they have the resources on the ground to manage a project of this scale?

We are not just looking for funders or builders; we are looking for partners who share our values of transparency and long-term value creation.

Step 5: Risk Management

The final step is asking: “What if?”

The global economy is volatile, and interest rates fluctuate. A robust underwriting process must account for the unknown. We perform stress testing against various economic headwinds to ensure the project remains viable even if market conditions tighten.

We test against:

• Construction Delays: If the project is delayed by six months, does the cash flow model still hold up?
• Cost Overruns: If material costs spike by 10%, is there enough buffer in the budget?
• Market Softening: If sales prices drop by 5% or 10%, is the project still profitable?

This risk management layer is what allows our investors to sleep at night. It transforms a gamble into a calculated investment.

The Mafhh Standard

Underwriting is not the glamourous side of real estate. It involves spreadsheets, legal documents, and difficult questions. However, it is the most important service we offer.

By adhering to this strict five-step checklist, Mafhh ensures that every project we approve—whether it is a joint venture like Zenith One or an off-plan opportunity—is built on a foundation of reality, not just hope. We bridge the gap between landowners and developers, using data and due diligence to create partnerships that generate lasting impact.

For those looking to navigate the Dubai real estate market with confidence, this level of scrutiny isn’t optional—it is essential.