Dubai Buyer Gets Fresh Appeal Hearing in Dh4.6M Property Classification Dispute

A Dubai property buyer who paid more than Dh4.6 million for what he believed was a hotel apartment has secured a fresh hearing after the Dubai Court of Cassation overturned an earlier appeal ruling in the long-running dispute.

The case concerns a luxury property in Dubailand purchased in 2013 for Dh3.13 million. Court records show the buyer later paid additional service and maintenance charges, taking the total amount paid to Dh4.69 million.

According to the buyer, the project was due for completion in December 2015, but the handover was delayed. When the unit was eventually delivered, he claimed it had been classified as residential rather than hotel-use, significantly affecting the nature, value and expected return of the investment.

The buyer also alleged construction defects and discrepancies in the actual size of the unit compared to the contract.

The dispute first reached the courts in 2021. In 2022, the Dubai Court of First Instance ruled in favour of the buyer, cancelling the sale agreement and ordering the developer to refund Dh4.69 million with interest. Although the ruling was initially upheld, it was later overturned by the Court of Cassation.

The proceedings then continued over an alternative claim filed by the buyer seeking Dh1.55 million, which he argued had been paid without legal basis.

In May 2025, the Court of First Instance accepted that claim. However, the Dubai Court of Appeal later reversed the decision and dismissed the case.

The buyer subsequently challenged the appeal ruling, arguing that the court had relied on a supplementary expert report based on account statements submitted by the developer. He maintained that those statements conflicted with earlier expert findings and a clearance certificate confirming receipt of Dh4.69 million.

In its latest judgment, the Court of Cassation held that courts may rely on expert reports but must properly examine serious objections raised against them when such objections could affect the outcome of the dispute.

The court found that the appeal court failed to adequately address alleged inconsistencies between the original expert findings and the supplementary report, as well as contradictions surrounding the payment records.

Judges also noted the developer’s argument that the clearance certificate confirming receipt of Dh4.69 million had been issued in error by its accounts department.

The Court of Cassation ultimately overturned the appeal ruling and referred the case back to the Court of Appeal for reconsideration, while also ordering the developer to bear court costs and legal expenses.

The ruling underscores the importance of accurate property classification, transparent payment documentation and careful judicial review of expert evidence in Dubai’s real estate disputes.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.