Dubai Court Orders Developer to Refund Dh185,000 for Delays

Feb 24, 2026

60 min

Feb 24, 2026 05:31

Dubai Court orders developer to refund Dh185,000 to investor over construction delays

## Court Ruling on Construction Delays

A Dubai court has ruled in favor of an investor, ordering a property developer to refund Dh185,000 due to significant construction delays. The court found that the developer's prolonged delay in completing a residential project justified a reduction in the retention penalty from 40% to 10%.

## Background of the Case

The investor had purchased three units in 2017, including one valued at approximately Dh463,000, with an expected handover by the end of 2018. However, by January 2019, construction had only reached 15.17% completion. The project was eventually finished in February 2023, well past the agreed deadline.

## Legal Proceedings

In 2023, the developer sought payment for outstanding instalments, leading to the termination of the contract under Dubai's off-plan property law. The investor, acknowledging the legality of the termination, filed a lawsuit to reduce the penalty percentage, citing the developer's breach of contract due to delays.

## Court's Decision

The court determined that retaining the full 40% would be unfair, given the developer's breach and the fact that they had regained ownership of the property. Consequently, the court ordered the developer to refund the investor, including legal interest, court expenses, and lawyer's fees.

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