Developer Restructuring: A Guide for Buyers

As the crisis continues, many Dubai developers are restructuring. Some are merging with stronger partners, others are renegotiating debts, reprioritising projects or seeking support from shareholders. For buyers who have paid instalments on unfinished homes, restructuring can be a worrying time. Understanding the process helps.

Forms of restructuring

• Mergers: combining developers to create stronger entities.
• Debt renegotiation: extending loan terms or converting debt.
• Project reprioritisation: focusing on projects near completion.
• Asset sales: selling land or projects to raise funds.

What it means for projects

Projects close to completion are most likely to be finished. Those in early stages may be delayed, redesigned or cancelled. In some cases, projects may be transferred to new developers.

Your rights as a buyer

Buyers' rights depend on their contracts, the project's registration and the escrow arrangements. RERA has an important role in overseeing projects and protecting buyers. Buyers should confirm the status of their project and seek advice on their options.

Practical steps

• Register your interest with RERA and check the project's status.
• Request regular updates from the developer in writing.
• Keep all documents and receipts.
• Coordinate with other buyers to share information.
• Take legal advice before making decisions about payments.

Possible outcomes

Outcomes range from completion on a revised timeline to transfers to alternative units, refunds or, in difficult cases, lengthy legal processes. Buyers should understand the options and their likely timelines.

Our view

Restructuring is difficult but necessary for the market to recover. We are helping clients navigate the process, protect their interests and make informed decisions.