Dubai Real Estate Court Orders Dh516,872 Refund Over Delay of Riviera Project

The Dubai Real Estate Court has ordered a property developer to refund Dh516,872 to an investor and pay Dh100,000 in compensation after finding that a residential unit in a Riviera-area project was not completed or handed over within the agreed timeframe.

In its ruling, the court cancelled the sale contract, citing the developer’s failure to fulfil its contractual obligations. The developer was also directed to cover court fees, litigation costs and related legal expenses.

Court records show that the dispute arose from an off-plan purchase agreement for a residential unit priced at Dh1.722 million, payable in two instalments. The investor had complied with the terms of the contract by paying the first instalment of Dh516,872, along with registration and administrative fees.

However, official records and construction progress reports submitted to the court revealed that the project had not advanced to a stage that would allow delivery within the contractually agreed period. The delays in construction ultimately prevented timely completion and handover of the unit.

The developer argued that the contract permitted an extension of the completion period and claimed that construction was close to completion. The court rejected this defence, noting that the delay exceeded the permissible contractual period and that the breach was clearly established through documentary evidence and progress reports.

Finding the delay unjustified, the court ruled that the contract should be rescinded and that both parties should be restored to their pre-contractual positions, including full repayment of the amounts paid by the investor. The Dh100,000 compensation was awarded to account for material and moral damages, including the investor’s lost opportunity to utilise or invest the funds elsewhere.

The judgment reinforces the Dubai courts’ firm approach to safeguarding investor rights in off-plan property transactions, particularly in cases where developers fail to adhere to agreed delivery schedules.

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