There has been much buzz surrounding off plan Property Handover Delay in Dubai since it’s seen as a lucrative investment with scope for high return and capital growth. Off-plan property generally encompasses properties that are either unconstructed or in the nascent stages of development. For this, the buyer usually deals directly with the developer or a real estate broker. Despite the allure of off-plan property investment, buyers should perform their due diligence before venturing into it, as with any other real estate investment.
One of the key deterrents to successful off-plan property investment is property handover delay. This can be due to delays in construction, financial hassles or regulatory interferences. There have been instances where the actual handover has been delayed by several years from the initially estimated property handover date. Hence, it is important to know the possible preventive and remedial measures the buyer can implement if there are delays in property handover in Dubai.
One must also be aware that investing in off-plan properties is deemed risky due to the sustained nature of the investment process. It might take years before the investor sees substantial growth in his capital. However, if you prefer long-term investments in tangible assets, off-plan property is ideal. Off-plan properties can include apartment complexes, villas and even commercial buildings under development.
Off Plan Property Delay in Dubai: How to Handle Them
Delay in the off-plan property handover in Dubai can topple your financial plans by causing unexpected housing costs, impacting your potential investment returns and delaying your property’s rental income.
Keep reading our article to know the crucial facts one must remember to prevent or deal with a property handover delay in Dubai.
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Payments, Fees, and Paperwork Should Not be Pending
The easiest solution to prevent property handover delay in Dubai is to complete the fee payment and paperwork before the handover date. Often, delays in property handover in Dubai might be triggered by incomplete payment and paperwork on the buyer’s end.
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Get a Glimpse of the Project Site
One of the quickest ways to gauge possible obstacles in the handover of your off plan property is to pay a quick visit to the project site. Additionally, you can visit Dubai Land Department’s (DLD) official website to access information related to the project’s completion date and current status.
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Identify a Solution with the Developer
After inspecting the tangible progress in infrastructure, you can attempt to meet the project developer in person to discuss the handover of your off plan property. Having a meeting with the developer shall help both parties discuss their concerns regarding the project.
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Verify Whether RERA Has Cancelled The Project
Visit the Dubai Land Department’s official website and check for the progress of your off-plan property construction in the ‘Project Status’ section. If, for any reason, the Real Estate Regulatory Authority (RERA) has cancelled your off-plan project, you can find it there.
The cancellation of your dream project can be a big shock and dismaying. On the bright side, however, when RERA terminates a project, the amount paid by the buyers to the developers must be fully refunded into the official Law Escrow Accounts under RERA laws. Dubai Real Estate Court will then handle the case and manage the settlement owed to the buyers.
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Develop a Negotiation With The Developer

The developer has a grace period of up to 12 months from the initially estimated handover date to complete the actual handover. However, even if it goes beyond these 12 months, it can be quite tedious to approach the courts for dispute resolution. It can be extremely time-consuming and expensive to seek compensation from the developer through the courts.
Hence, it is always more beneficial for both parties to reach an amicable resolution than to get tangled in a long legal battle. Thoroughly discuss all aspects of the handover of your off plan property with your developer.
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Bring a Case Against The Developer
If you feel you have exhausted all other options, you can file a case against the developer as a last resort. All cases concerning the delay in off-plan property handover in Dubai should be filed with the Dubai Real estate Court. It is best to seek legal assistance from a renowned property lawyer as the first step. With the help of a lawyer, you can familiarise yourself with the legal nuances of the contract.
After analysing the clauses and conditions mentioned in your contract with the developer, the lawyer can advise you on the possible compensation you can claim for the property handover delay in Dubai. Depending on the clauses, one might also be able to request a full refund and terminate the existing buyer-developer contract.
Dubai Property Handover Delays: How Can You Avoid Them?
Though Dubai real estate laws are pretty stringent, you must do your due diligence before investing in an off-plan property. The points detailed below will guide you regarding the same.
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Project Developers Should Be Cross-Checked
It is pertinent to analyse the developer’s track record in the area where the property construction is underway. The buyer should thoroughly scrutinise the developer’s completed plans and the property’s handover time.
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DLD Escrow Account Registered
RERA has mandated that all developers open an escrow account according to the Law Concerning Escrow Accounts to prevent fraud and other risks. The payments by all buyers and investors will be deposited here to be managed by an external escrow agent. The escrow agent must legally retain 5% of the total amount in the escrow account after the issuance of the completion certificate. This 5% is released only a year after the official registration of the units in the buyers’ names.
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Register The Project With RERA
After ensuring that the developer is registered with RERA and DLD, the buyer must inquire whether the off-plan project has been registered. The buyer must also ensure that the project abides by Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the Emirate of Dubai. The buyers can visit the Dubai Land Department’s (DLD) official website. The buyers can also use the Dubai REST mobile application to verify the project’s validity.
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Are The Developer’s Permits Updated?
The first and foremost thing to be mindful of is that the developer must be registered with both the Dubai Land Department and the Real Estate Regulatory Authority (RERA) for it to be a legally authorised entity. This also encompasses the multitude of permits required from the governing bodies.
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Feasibility of Payment
Many find off-plan properties a lucrative investment option due to the potentially huge returns on the initial capital. However, reaching a mutual agreement regarding the payment plan is pertinent.
When a buyer directly buys from the developer, they might have to pay up to 20% of the final property price upfront. This is generally done when signing the Sales and Purchase Agreement (SPA). The rest of the payment terms are negotiated between the buyer and developer, which could also include post-handover payments.
Despite off-plan properties being potentially high-return investments, one can never be sure of the returns from such investments. A plethora of factors, such as real estate market variables and the actual development of the area post-property handover in Dubai, impacts the final property value when you decide to sell it.
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Make Sure To Read The Contract Before Signing
Seeking legal advice before signing the Sales and Purchase Agreement (SPA) is advisable. This helps to ensure that there aren’t any terms that could impact the buyers’ rights. These include the clauses on penalties, dispute resolution methods and extension of property completion date. Seeking a lawyer’s advice to verify these terms can ensure that a fail-safe mechanism is in place for the buyer. This is a critical step in preventing property handover delays in Dubai.
Final Note
There are several potential risks associated with all real estate investments. Doing your due diligence on the possible investment hassles can help avert risks greatly. These include doing thorough research on the developer, familiarising yourself with the real estate regulations of the region, and meticulously inspecting the SPA before signing. If you are planning to invest in an off-plan property or are currently dealing with an off-plan property handover delay in Dubai, the important tips in the article could prove beneficial.
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Frequently Asked Question (FAQs)
The Dubai Land Department was established in 2008 to facilitate transparency and assistance in the real estate sector. It is an initiative by the Dubai Government. For additional information, you can visit DLD's official website. The website can provide you insights into the reason for your property handover delay in Dubai.
Possible high return on the initial investment Flexible payment options, including post-handover payments After the handover, the property would generally be worth higher than what was paid by the buyer.
Off-plan property is a lucrative real estate venture for those seeking long-term investments with a possible high Return on Investment (ROI). What is the Dubai Land Department (DLD)?
What are the advantages of buying an off-plan property?
Why should you invest in an off-plan property?