Why Technical Due Diligence Must Be a Pillar of Property Transactions
In the UAE’s fast-moving real estate market, investors are no longer satisfied with surface-level indicators such as location and yield alone. They now seek certainty about hidden liabilities, building performance, and long-term asset resilience.
In this environment, Technical Due Diligence (TDD) has become a critical component of every acquisition or financing decision. It provides investors, lenders, and developers with a transparent, evidence-based understanding of what lies beneath the surface of a transaction.
As foreign capital continues to pour into the UAE’s residential, commercial, and industrial sectors, international buyers are bringing global standards of risk assessment with them. This shift is transforming TDD’s from a discretionary step into a non-negotiable part of investment strategy.
Market Update, a Record-Setting 2024 and Momentum into 2025
According to data released by Dubai Land Department, the real estate market in Dubai continued its upward trajectory through 2024 and into 2025, recording strong growth in both transaction value and volume compared to previous years. Property Monitor reported that activity levels reached new highs, supported by sustained demand across residential, commercial, and off-plan segments.
The number of new investors entering the market also increased significantly, reflecting growing international confidence in the property sector. Average sales prices remained on an upward trend through late 2024 before stabilising in early 2025, while overall transaction activity continued to expand, setting new monthly and annual records.
These indicators highlight the ongoing strength, maturity, and resilience of not just Dubai’s real estate market, but the UAE as a collective.
What is Technical Due Diligence?
The premise of a TDD instruction is an independent, structured assessment of a property or site to identify technical risks, quantify liabilities, and confirm compliance. It forms a cornerstone of smart investment, supporting valuation, financing, and long-term asset management decisions.
A typical TDD review includes:
- Structural and envelope condition: Load-bearing elements, identifying cracks, waterproofing, façade integrity.
- Mechanical, electrical, and plumbing (MEP) systems: HVAC, electrical supply, plumbing, and drainage.
- Fire and life safety systems: Alarms, sprinkler systems, egress compliance, compartmentation.
- Building services and infrastructure: Vertical access, utilities and external works.
- Regulatory and code compliance: Municipality and Civil Defence standards, NOCs, and permits.
- Deferred maintenance and capital expenditure forecasting: Lifecycle planning for major systems, production of life cycle cost models.
Why TDD’s Matter: Informed Decision-Making
TDD’s are essential in identifying risks, defects, and liabilities before a property transaction or investment. It typically provides investors, lenders, and developers with a clear understanding of a building’s condition, compliance, and future maintenance needs. A TDD will aim to identify key items, such as;
- Hidden liabilities: Identifies latent defects or concealed deterioration that could lead to costly future repairs.
- Supports accurate capital forecasting: Enables modelling of replacement cycles and maintenance schedules to build realistic budgets.
- Strengthens investor credibility: Institutional and overseas investors expect transparency. A structured TDD report demonstrates professional diligence and builds trust between parties.
- Reduces disputes: Establishing the property’s baseline condition at acquisition stage minimises post-purchase claims or disputes related to latent defects.
- Uncovers value-enhancement opportunities: TDD’s can reveal upgrade potential or performance improvements that may increase the asset’s value and resilience over time.
Common Challenges in The Region and Best Practices
The UAE property market presents several challenges when undertaking TDD reports. Many assets were built during rapid development phases, often with incomplete documentation or variations from original design intent. Access to reliable as-built documentation, maintenance records, and warranties is often limited, making independent verification challenging. Some of the more common challenges we have within this region are noted below:
- Restricted access to certain areas during inspections. Some assets are operational and are occupied at the time of inspection, resulting in difficulty in accessing all areas of the property.
- Differences between as-built drawings and on-site conditions.
- Gaps in maintenance or statutory documentation.
- Compressed due diligence timeframes due to contract stipulations and agreements between the parties involved.
- Coordination across structural, MEP, and legal specialists can be a lengthy process.
Best Practice Recommendations for clients:
- Aim to commission TDD’s early, ideally before finalising commercial terms.
- Tailor the scope to asset class, risk level, and transaction complexity.
- Engage independent, RICS-certified consultants familiar with UAE region and associated regulations.
- Allow reports to be delivered in stages, highlighting urgent findings first.
- Integrate results from reporting into financial and legal reviews.
- Use findings to negotiate warranties, escrow arrangements, or price adjustments.
Our Expertise
In a market as dynamic as Dubai, where record transaction volumes and asset values continue to rise, TDD reporting is a fundamental safeguard. It ensures that investment decisions are backed by evidence, protects buyers from unforeseen liabilities, and supports long-term asset performance.
Engaging a qualified Building Surveyor early in the acquisition process allows investors to make informed, transparent, and defensible decisions, turning risk into foresight.
Cavendish Maxwell delivers TDD services across the UAE and GCC, combining technical expertise with deep market insight. Our RICS-qualified team assesses building condition, regulatory compliance, lifecycle costing, and sustainability performance.
Our clients gain a clear understanding of their assets, enabling them to manage risk, negotiate effectively, and secure long-term value.
