Do Not Buy From This Developer
- Brainz Magazine
- 2 days ago
- 3 min read
Al Fouad Group is a leading real estate consultancy specializing in valuation, development advisory, and investment strategies, alongside City Creek Contracting. The Group provides expert guidance to investors and developers across luxury and high-growth real estate markets.
In real estate, most buyers focus on price, location, and projected returns. What many overlook, often at great cost, is that the most critical decision is not the unit itself, but the developer behind it.
The market is full of projects that launched with confidence and strong marketing, only to end in delays, poor delivery, or unresolved disputes. In most cases, the problem was never the market. It was the developer.
Before committing your money, take a moment to recognize these warning signs.
1. A history of delayed projects
If a developer has delayed delivery before, this is not a coincidence or a one-time issue. Delays usually reflect weak planning, cash flow pressure, or poor project management.
A disciplined developer treats timelines as commitments. A troubled one treats them as estimates.
2. Complete dependence on buyer payments
When construction relies entirely on buyers’ installments, with no clear financing or financial backing, the project becomes vulnerable.
Any slowdown in sales can lead to:
Construction delays
Compromised quality
Extended handover timelines
In such cases, the buyer carries most of the risk.
3. Marketing promises that sound too good
Be cautious of developers who:
Promise unusually high returns
Focus on slogans rather than numbers
Sell concepts before proving execution capability
In real estate, consistency and clarity signal strength. Excessive hype often signals pressure.
4. Frequent changes of contractors or consultants
Repeatedly changing contractors or consultants is rarely a positive sign. It often shows:
Financial disputes
Contractual breakdowns
Weak project control
These issues always affect both delivery timelines and build quality.
5. Outstanding debts to contractors, consultants, or brokers
One of the most serious red flags is a developer who:
Owes money to contractors
Has disputes with consultants
Has unpaid broker commissions
This usually means the project is under financial strain. Under such pressure, quality is often sacrificed, and new buyer funds may be used to cover old liabilities.
6. One-sided or vague contracts
Review the contract carefully. If you find:
Strict obligations on the buyer
Weak or unclear obligations on the developer
Little or no penalty for late delivery
This suggests the developer is protecting itself, not planning to be accountable.
7. Poor reputation within the market
Ask professionals, not advertisements. Brokers, consultants, and contractors often know which developers to avoid.
A poor reputation rarely appears in brochures, but it travels fast within the industry.
8. Low-quality previous deliveries
Visit completed projects. Look closely at:
Finishing quality
Maintenance issues
Owner complaints
Poor delivery today becomes high maintenance costs and value erosion tomorrow.
9. No track record of completed projects
A developer who has never completed and handed over a project is untested.
They may succeed, or they may fail. The real question is, are you willing to be the experiment? In investment, experience matters.
Conclusion
Not every new project is an opportunity. Not every developer deserves your trust. If several of these warning signs appear, pause and reconsider.
Real estate is a long-term commitment. Mistakes are expensive and rarely reversible. Opportunities are many. Capital is not.
Read more from Mohamed Ahmed Fouad Amin
Mohamed Ahmed Fouad Amin, Owner of Alfouad Group
Mohamed Ahmed Fouad Amin is a real estate expert, author, and investment consultant with extensive experience in valuation and development advisory across the UAE and MENA region. He is the founder of Al Fouad Real Estate Valuation and a member of FIABCI and ACAMS. Mohamed specializes in guiding investors, analyzing developers, and identifying high-value opportunities. He authored “Sell a Property to Billionaires” and “Please, Don’t Buy From This Developer,” empowering investors with clarity and confidence.
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