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Industry-Specialized Auditors

Real Estate & Property Audit Services in Dubai

RERA Compliance | Escrow Account Audits | Developer Certifications

Navigate Dubai's complex real estate regulations with confidence. Our specialized auditors understand RERA requirements, DLD compliance, and the unique challenges of property development, management, and investment in the UAE.

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Ministry Approved
Industry Specialists
Fast Turnaround

The Real Estate Landscape in Dubai

Dubai's real estate sector is one of the most dynamic and regulated in the world, with strict compliance requirements enforced by the Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD). Whether you're a property developer, real estate investment trust (REIT), property management company, or real estate broker, annual audits are mandatory and must address industry-specific regulations.

The UAE real estate industry faces unique audit challenges including escrow account compliance, service charge audits, off-plan sales verification, rental income recognition, and fair value assessments for investment properties under IFRS. Our auditors specialize in these complexities, having audited over 200 real estate entities across Dubai, Abu Dhabi, and Northern Emirates. As one of the [top real estate audit firms in Dubai](/en/top-10-audit-firms-dubai), we bring unmatched expertise to property sector audits.

With recent updates to RERA regulations in 2024 and new requirements for beneficial ownership disclosure, real estate companies need auditors who stay current with regulatory changes. Our team includes former RERA consultants and property valuation specialists who understand both the accounting standards and the operational realities of Dubai's property market.

Unique Challenges in Real Estate Audits

Industry-specific audit complexities that require specialized expertise and proven methodologies

Escrow Account Compliance
RERA mandates strict escrow account requirements for developers. Auditors must verify that all customer payments for off-plan properties are deposited correctly, released only per approved construction milestones, and reconciled with project completion percentages.
Revenue Recognition Complexity
Under IFRS 15, revenue recognition for real estate sales depends on transfer of control. Off-plan sales, rental income, service charges, and facility management fees all have different recognition criteria that require specialized audit procedures.
Investment Property Valuation
IAS 40 requires investment properties to be measured at fair value or cost. Most UAE entities choose fair value, requiring annual independent valuations. Auditors must assess valuation methodologies, comparable transactions, and cap rate assumptions.
Service Charge Fund Audits
Owners associations and property managers must maintain separate service charge accounts with annual audits. These audits verify that funds collected from unit owners are used appropriately for common area maintenance and disclosed transparently.
Related Party Transactions
Real estate groups often have complex related party structures involving master developers, subsidiary project companies, facility management arms, and family ownership. Auditors must identify and disclose all related party transactions at arm's length terms.
Contract Asset and Liability Management
Developers must correctly classify contract assets (unbilled revenue for work completed) and contract liabilities (advance payments before performance obligations are met). Misclassification can materially misstate financial position.

Real Estate Regulatory Compliance

Comprehensive compliance coverage across all applicable regulations and standards

RERA (Real Estate Regulatory Agency)
Primary regulator for Dubai real estate market under Law No. 16 of 2007
  • Annual audited financial statements submission for all registered developers
  • Escrow account compliance certification
  • Project completion status verification
  • Service charge fund audit for community management
  • Broker financial compliance (for real estate agencies)
  • Off-plan sales disclosure and tracking
DLD (Dubai Land Department)
Oversees property registration, transfer, and title management
  • Transaction documentation for audit trail
  • Transfer fee calculation verification
  • Ownership structure disclosure
  • Beneficial ownership transparency (2024 requirement)
  • Foreign ownership compliance in designated areas
IFRS for Real Estate
International accounting standards specific to property sector
  • IFRS 15: Revenue from Contracts with Customers (off-plan sales)
  • IAS 40: Investment Property (fair value measurement)
  • IAS 16: Property, Plant & Equipment (owner-occupied property)
  • IFRS 3: Business Combinations (property acquisitions)
  • IAS 2: Inventories (property held for sale)
UAE Commercial Companies Law
Federal Law No. 32 of 2021 governing corporate entities
  • Annual statutory audit requirement
  • Financial statement preparation in Arabic and English
  • Ministry-approved auditor appointment
  • Corporate governance compliance
  • Related party disclosure requirements

Our Real Estate Audit Methodology

We have developed a specialized audit approach for real estate companies that addresses the unique complexities of property development, investment, and management in Dubai.

1

Planning & Risk Assessment

We conduct in-depth analysis of your real estate portfolio, development pipeline, and regulatory obligations to design a risk-based audit approach.

Key Deliverables:

  • Complete project portfolio review
  • Escrow account risk assessment
  • Revenue recognition policy evaluation
  • Valuation methodology analysis
  • Internal control assessment
  • Regulatory compliance checklist
2

Fieldwork & Testing

Our team performs detailed substantive procedures tailored to real estate transactions, including site visits, escrow verification, and contract testing.

Key Deliverables:

  • Escrow account reconciliation and compliance testing
  • Construction progress site verification
  • Revenue recognition testing per IFRS 15
  • Investment property valuation review
  • Related party transaction analysis
  • Service charge fund audit procedures
3

Reporting & Recommendations

We provide comprehensive audit reports that satisfy RERA, DLD, and statutory requirements, plus actionable recommendations for improvement.

Key Deliverables:

  • Audited financial statements (Arabic & English)
  • RERA compliance certification
  • Escrow account audit report
  • Management letter with recommendations
  • Internal control improvement suggestions
  • Regulatory filing support

Why Choose Our Real Estate Audit Services

RERA Expertise

Our team includes former RERA consultants who understand the regulatory requirements from the inside, ensuring your submissions are complete and compliant the first time.

Escrow Specialists

We have audited over 150 escrow accounts for Dubai developers. Our specialized procedures ensure full compliance with RERA's strict escrow requirements and proper milestone-based release verification.

Valuation Review Capability

Our auditors include RICS-qualified valuation specialists who can critically assess independent valuations, ensuring your investment property fair values are supportable and compliant with IAS 40.

Fast Turnaround

We understand RERA deadlines. Our dedicated real estate audit team can complete most audits within 3-4 weeks, giving you time to file before regulatory deadlines.

Industry Relationships

Our strong relationships with RERA, DLD, and land departments across UAE emirates can help resolve compliance questions quickly and facilitate smooth regulatory submissions.

Technology-Enabled

We use specialized real estate audit software that can analyze large transaction volumes, verify escrow compliance, and track project milestones efficiently.

Common Audit Findings in Real Estate

Learn from common issues we identify and how to resolve them proactively

Issue

Premature Revenue Recognition

Impact

Off-plan sales revenue recognized before transfer of control to buyer, overstating revenue and profits

Solution

Implement IFRS 15 5-step model, recognize revenue only when buyer obtains control (typically at handover)

Issue

Escrow Account Discrepancies

Impact

Customer payments not deposited to escrow, or improper releases without RERA approval

Solution

Establish robust escrow monitoring, reconcile monthly, obtain RERA approval before each release

Issue

Unsupported Property Valuations

Impact

Investment property fair values not supported by independent valuations or comparable transactions

Solution

Engage RICS-qualified valuers annually, document valuation methodology and comparable analysis

Issue

Service Charge Fund Commingling

Impact

Service charge funds mixed with developer funds, violating RERA requirements for separate accounts

Solution

Maintain separate bank accounts for each community, prepare standalone service charge accounts

Issue

Related Party Transactions Not Disclosed

Impact

Facility management contracts, land sales, or financing from related parties not properly disclosed

Solution

Implement related party identification process, disclose all transactions per IAS 24 requirements

Issue

Construction Costs Capitalization Errors

Impact

Indirect costs inappropriately capitalized or borrowing costs not calculated correctly per IAS 23

Solution

Establish clear capitalization policy, calculate qualifying borrowing costs based on weighted average

Success Story

Case Study: Master Developer Escrow Compliance

The Challenge

A major Dubai developer with 12 active off-plan projects faced RERA warnings for escrow account inconsistencies. Previous audits had qualified opinions due to insufficient escrow documentation and improper fund releases.

Our Solution

We conducted a comprehensive escrow account reconstruction, reconciling 3 years of transactions across all projects. We implemented a monthly escrow monitoring system, trained the finance team on RERA requirements, and established pre-release checklists requiring RERA approval documentation.

Measurable Results

Achieved clean audit opinion for first time in 3 years
Resolved all RERA compliance warnings
Recovered AED 2.3M in escrow funds that were improperly released
Implemented automated escrow monitoring reducing compliance time by 60%
Developer able to launch 5 new projects with RERA confidence

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