Project Delays and Your Rights as a Buyer

In recent weeks, developers across Dubai have announced delays, slowdowns or reviews of projects. Atlantis opened on the Palm in September, but elsewhere the mood has changed dramatically since the global financial crisis deepened. For buyers of homes under construction, delays raise practical and legal questions that need careful answers.

Why projects are being delayed

• Funding: developers have less cash from sales and less access to loans.
• Demand: fewer buyers are willing to commit to new projects.
• Prioritisation: developers focus resources on projects closest to completion.

Your contract

Most sale agreements include clauses on completion dates and delays. Some allow developers a grace period; others provide compensation or rights to cancel if delays exceed certain limits. Buyers should read their contracts carefully and take legal advice on their options.

The role of RERA and escrow

For projects registered under the new rules, RERA oversees developers and escrow accounts hold buyers' payments. Buyers should confirm their project's registration and escrow status and contact RERA if they have concerns.

What not to do

Stopping payments without legal advice can put buyers in breach of contract and risk losing what they have paid. Buyers should seek advice before taking any action and should communicate with the developer in writing.

Practical steps

• Request written updates on construction progress and revised timelines.
• Keep all payment receipts and correspondence.
• Join with other buyers in the project to share information.
• Consider whether the project remains a sound investment at its revised timeline.

Our view

Delays are an inevitable consequence of the current crisis. Buyers who understand their rights, stay informed and act through proper channels will be best placed to protect their investments.