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BETTESWORTHConstruction
buyer due diligence

Deyaar calls for full disclosure of property ownership costs

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Egyptian developer Deyaar Construction and Development is calling for buyers to receive a complete picture of property ownership costs before they sign. Chairperson Hany Farag wants every unit accompanied by a financial and technical summary covering the purchase price, instalment timing, handover specifications, finishing, maintenance and service charges, with fixed costs separated from estimates and variable fees. The proposal addresses a common weakness in headline-price marketing: the advertised figure may not show what a family or investor will actually pay to receive, occupy and maintain a home.

The report concerns the Egyptian company. It should not be confused with Deyaar Development PJSC, the separate Dubai company that operates deyaar.ae.

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What did Deyaar ask developers to disclose?

Farag’s proposal is a standardised pre-contract summary for each unit. It would let a buyer see both the technical specification and the complete financial path from reservation to occupation.

  • Total payments and instalment schedules: every due date, amount and condition attached to a payment.
  • Handover specifications: what the developer promises to deliver, including the stated unit area and included fixtures or finishes.
  • Finishing costs: amounts required to make the unit ready for the buyer’s intended use, rather than leaving those costs implicit.
  • Maintenance fees and service charges: recurring charges after handover and the services they fund.
  • Fixed, estimated and variable items: a clear label for costs that cannot change, costs based on an estimate and charges calculated later.
  • Calculation method for variable charges: the assumptions, measurement basis and formula used to set an amount that is not known at signing.

As Farag put it, “A life-changing decision deserves a complete cost breakdown.” He also said, “Transparency is part of a property’s value,” and “Trust begins before the contract is signed.”

Why is the advertised price not the full ownership cost?

A unit’s headline price answers only one part of the affordability question. The timing of instalments affects borrowing and cash-flow needs; handover and finishing determine how much money is needed before occupation; and service or maintenance charges continue after the purchase has completed.

For an investor, those items change the net return and the period before a property produces income. For a household, they can determine whether a payment plan remains manageable after moving in. Publishing the complete schedule early would allow buyers to budget on realistic figures, compare projects on value rather than marketing price and reduce later disputes over specifications or additional expenses.

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How should buyers compare payment plans and service charges?

Put competing offers into one written comparison and keep one-time and recurring costs separate. A useful minimum framework is:

Comparison area Questions to answer before signing
Total cash outlay and timing What is due at reservation, during construction, at handover and afterward? Are late-payment conditions or other triggers stated?
Handover and finishing What area, specification, fixtures and finishes are contractually included, and what work remains for the buyer?
Recurring charges What maintenance or service fees begin at handover, what do they cover and how often can they be revised?
Variable charges Which amounts are estimates, who sets them, what assumptions are used and how can the buyer verify the calculation?

Ask the developer to mark every line as fixed, estimated or variable. Do not treat an estimate as a cap unless the contract expressly makes it one. Keep the summary, specifications and payment schedule with the draft contract so differences can be identified before signing.

What independent checks should be completed?

Disclosure from a developer is useful, but it does not replace independent verification. Before committing, buyers should arrange checks appropriate to the property and jurisdiction.

Title, mortgage and encumbrance checks

Confirm who owns the property and whether a mortgage, seizure, suspension or other restriction affects it. In Dubai, the Land Department’s detailed property statement for one property covers owner, property, mortgage, seizure, suspension and project details. The published online charge is AED 50 per letter, plus AED 10 knowledge and AED 10 innovation fees, with a stated service time of 10 minutes.

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Physical condition and valuation

Use an independent inspection or site investigation to test the promised condition, area and unfinished work. A professional valuation can then assess whether the price and expected income are supported by the property itself rather than by the brochure.

Contract and disclosure review

A qualified property lawyer can compare the disclosure summary with the sale contract, identify missing obligations and explain cancellation or remedy provisions. Due-diligence practice described in DLA Piper’s Dubai guide can include site inspections, a lawyer’s report and a professional valuation survey, alongside pre-contract good-faith and disclosure duties.

What legal disclosure protection exists in Abu Dhabi?

Abu Dhabi’s published registration law requires a disclosure statement before a completed-project or off-plan purchase contract is signed. If the required information is not provided, the buyer may have grounds to request termination. The rule is jurisdiction-specific, so it should not be assumed to create the same remedy in Egypt, Dubai or another market; obtain local legal advice on the applicable contract and procedure.

What should a buyer request in writing?

  1. Request the unit’s area, technical specification and handover standard in a dated document.
  2. Request a complete payment calendar, including every instalment and handover amount.
  3. Request a line-by-line list of finishing, connection, registration and other occupation costs that apply to the transaction.
  4. Request current maintenance and service-charge figures, the services covered and the revision mechanism.
  5. Request the formula and assumptions for every estimated or variable charge.
  6. Compare the written material with title records, inspection findings and an independent valuation before signing.
  7. Keep evidence of unanswered questions and obtain professional legal review where the disclosure or contract is incomplete.

What does this mean for Egypt’s property market?

Farag’s call is a transparency proposal, not a reported market statistic or a new nationwide cost schedule. Its practical significance is that developers would compete on the total cost and quality of ownership rather than on a low entry price. Buyers can apply the same discipline now by demanding a complete written breakdown and testing it with independent checks.

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Frequently Asked Questions

What are the hidden costs of buying a property?

They can include finishing and handover work, recurring maintenance or service charges, and amounts that are estimated or calculated later. The exact categories depend on the project, so request a line-item schedule rather than relying on a generic percentage.

Can I get a property report before buying in Dubai?

Yes. Dubai Land Department’s detailed property statement for one property can show owner, property, mortgage, seizure, suspension and project details. The published online fees are AED 50 per letter plus AED 10 knowledge and AED 10 innovation fees.

What should a developer disclose before I sign an off-plan contract?

Ask for the unit’s area and specifications, payment and handover schedules, included finishes, ownership and usage expenses, and the method used to calculate variable charges. In Abu Dhabi, a disclosure statement is required before completed-project or off-plan contracts are signed.

How can an investor test a property’s expected return?

Build the calculation from the full cash schedule, finishing and handover spending, recurring charges and an independent valuation. Treat any charge described as estimated or variable as an assumption to test, not as a guaranteed figure.

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