What Happens if the Developer Delays an Off-Plan Project in Dubai?

Monday, 27 October 2025

Investing in an off-plan property in Dubai is an exciting opportunity — it allows buyers to secure premium homes at competitive prices while enjoying flexible payment options. However, sometimes projects may face delays due to various factors. The good news is that Dubai’s real estate laws provide strong protection for buyers, ensuring that their rights are safeguarded even in such cases.

Let’s explore what happens if a developer delays an off-plan project and what legal options are available for buyers — all explained in clear and positive terms.

Table of Contents

• The Role of the Sale and Purchase Agreement (SPA)
• Compensation for Delay
• Role of the Dubai Land Department (DLD)
• Further Legal Action (If Needed)
• Force Majeure Situations
• Buyer’s Best Course of Action
• Frequently asked questions

1. The Role of the Sale and Purchase Agreement (SPA)

When purchasing an off-plan property in Dubai, both the buyer and the developer enter into a Sale and Purchase Agreement (SPA). This contract clearly defines important details such as the purchase price, completion date, penalties or compensation for delays, and force majeure clauses (events beyond the developer’s control).

The SPA is legally binding and is implemented in good faith as per Article 246 (1) of the UAE Civil Transactions Law (Federal Law No. 5 of 1985), which emphasizes that contracts must be carried out honestly and in accordance with agreed terms.

This means both the buyer and the developer are expected to honor the terms of the SPA throughout the project’s lifecycle.

2. Compensation for Delay

If a developer fails to deliver the project on time without a valid reason, the buyer may be entitled to compensation. According to Article 295 of the UAE Civil Transactions Law, compensation is typically paid in monetary form. In certain cases, a judge may also order the situation to be corrected or resolved in another fair way, depending on the circumstances.

This provision ensures that buyers are not left disadvantaged if project timelines are not met as promised.

3. Role of the Dubai Land Department (DLD)

If a buyer experiences delays or disputes, they can approach the Dubai Land Department (DLD) — the official authority overseeing real estate transactions and developer activities.

Under Article 14 of the Executive Council Resolution No. 6 of 2010, the DLD may intervene to mediate disputes between the buyer and the developer. The department can propose amicable solutions to help preserve the contractual relationship.

If both parties reach an agreement, the DLD documents and approves it, making it legally binding for both sides. This ensures transparency, fairness, and resolution without lengthy legal battles.

4. Further Legal Action (If Needed)

If an amicable resolution cannot be achieved, the DLD may refer the matter to competent authorities for further investigation under Article 13 of Law No. 13 of 2008.

Alternatively, a buyer also has the right to file a civil case directly with the Dubai Courts seeking compensation for delays. The court will review the SPA terms, evidence, and the reasons for the delay before making a fair judgment.

5. Force Majeure Situations

In some cases, developers may face genuine obstacles beyond their control — such as government restrictions, global supply chain disruptions, or other unforeseen circumstances. These are known as force majeure events.

Under Article 21 of Executive Council Resolution No. 6 of 2010, a developer can explain that the delay occurred due to such unavoidable events. In such cases, the authorities and courts will assess whether the reasons are valid before determining the outcome.

This ensures fairness and consideration for both parties — protecting the buyer’s interests while recognizing legitimate challenges faced by developers.

6. Buyer’s Best Course of Action

If your off-plan project is delayed, you can:

• Approach the DLD to file a complaint and seek mediation.
• Reach an amicable settlement with the developer under DLD supervision.
• File a civil case in Dubai Courts seeking compensation if necessary.

Dubai’s legal framework ensures that every buyer has the right to fair treatment and timely resolution — reflecting the emirate’s commitment to maintaining a transparent and trustworthy real estate environment.

Delays in off-plan projects can be concerning, but Dubai’s robust property laws ensure that buyers are protected at every stage. From the detailed clauses in the SPA to the intervention of the Dubai Land Department, every measure is designed to ensure fairness, transparency, and accountability.

Buyers can feel confident investing in Dubai’s thriving property market, knowing that clear legal pathways exist to resolve any disputes in a structured and balanced manner.