Dubai Court Orders Developer to Pay Dh50,000 for Delayed Property Handover

The Dubai Real Estate Court has ordered a real estate company to pay Dh50,000 in compensation to an investor after a delay of nearly two years in handing over a residential unit in Dubai.

The court also ruled that the developer must pay 5 per cent legal interest on the amount from the date the judgment becomes final until full settlement, in addition to bearing all fees, expenses and legal costs.

According to case details, the investor entered into an agreement in April 2020 to purchase a residential unit in a project located in Jebel Ali Industrial Area 2 for Dh395,000, with delivery originally scheduled for the last quarter of 2022.

The investor stated that he had fully paid the purchase price, but the developer failed to complete and deliver the unit on time, ultimately transferring ownership only in February 2025. The delay, he argued, caused him to lose potential rental income and investment returns.

He sought compensation based on expected rental yields calculated using the Dubai Land Department’s rental index, in addition to damages for financial and moral losses.

The developer argued that the contract allowed for a possible extension of up to 12 months. However, the court found no evidence that the investor had been notified of any extension before the original delivery deadline expired. It held that any later notice was invalid as it came after the contractual period had lapsed.

The court concluded that the delay constituted a breach of contract and upheld the investor’s right to compensation, fixing the amount at Dh50,000 based on the circumstances of the case and the losses suffered.

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