UAE Property: 'When does a Dubai off-plan property delay become a red flag?'

Question: My husband and I bought our first Dubai property off-plan in 2023. We weren't investors – the plan was to move into it when our current tenancy ended. The original handover was supposed to be this year, but the developer has now pushed it back and construction still doesn't look anywhere near finished.

We have paid 60 per cent of the purchase price and are also paying Dh135,000 ($36,760) a year in rent. The developer keeps telling us the delay is unavoidable and covered by the Sale and Purchase Agreement's (SPA) grace period.

Answer: This is exactly why I tell off-plan buyers that the handover date in the brochure and the contractual completion provisions in the SPA are not necessarily the same thing.

Your starting point is the SPA. Look for the anticipated completion date, the contractual grace period, circumstances allowing extensions and what remedies are available if the developer goes beyond them. Many Dubai SPAs contain grace periods and also the law allows for a 12-month delay in any case. Therefore, missing the originally advertised date doesn't automatically mean the developer is in breach.

I would then compare the contract with the project's official construction progress , rather than relying on what the sales team tells you or what the site looks like from the road.

In your situation, the biggest issue is that you're an end user. Every month of delay has a real cost because you're continuing to pay Dh135,000 a year in rent while a substantial amount of your capital is already tied up in the property .

I wouldn't panic simply because a project is late. Construction delays happen. But I also wouldn't accept indefinite assurances of “soon”.

Once you know the contractual long-stop position, get the developer to confirm the revised completion programme in writing. If progress and the promised date don't appear remotely compatible, that's the point at which I would take the SPA and payment record to a property lawyer and understand your options before making any decision about withholding payments, cancelling or pursuing compensation.

The important thing is not to stop paying instalments because the project is late. Your obligations and the developer's obligations are separate contractual issues, and you don't want to turn yourself from the aggrieved buyer into the party in default.