A Dubai court has ordered a property developer to refund Dh185,000 to an investor, ruling that long construction delays made it unfair for the developer to keep most of the money paid for an off-plan apartment.
The dispute began in 2017, when the investor bought three units in a development that was supposed to be finished by the end of 2018—later extended to December 2019. After paying nearly half the price of one unit (about Dh231,000) plus registration fees, the buyer stopped further payments when construction stalled. By early 2019, official records showed the project was only 15% complete. In reality, it wasn’t finished until February 2023—more than three years after the final agreed handover date.
When the investor stopped payments, the developer moved to terminate the contract and cancelled the unit’s registration, keeping all the money paid so far. The investor didn’t protest the termination itself, but took the matter to court, arguing that the developer shouldn’t be allowed to retain such a large portion given the lengthy delays.
The court agreed, finding that while developers can keep part of the payments when contracts are terminated, the amount should be fair and reflect the circumstances. In this case, the court decided the developer could only keep 10% of the unit’s value, not the 40% it had originally held back. The developer was ordered to return Dh185,000 to the investor, plus 5% legal interest from the date the lawsuit was filed until full payment is made.
The ruling also awarded the investor legal costs and fees, sending a clear message: while off-plan buyers take on some risk, developers must deliver on time—or face consequences if they don’t.
