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

<q>When does a Dubai off-plan property delay become a red flag?</q>

When purchasing an off-plan property in Dubai, the most critical factor to monitor is the contractual completion date outlined in the Sale and Purchase Agreement (SPA). While the developer may provide an anticipated completion date and a grace period, it is essential to compare this with the actual progress of the construction. In the case of an end-user buyer, the delay can have significant financial implications as rent payments continue while capital remains tied up in the property.

To determine whether a delay should raise concerns, buyers should first understand the contractual long-stop position and then request a written confirmation of the revised completion programme from the developer. If the progress and promised date do not align, a property lawyer should be consulted to assess the available options, such as withholding payments, cancelling the purchase, or pursuing compensation.

It is crucial to remember that paying the instalments is a separate contractual obligation from the developer's responsibility to complete the project on time. Stopping payments due to a delay could turn the buyer into the party in default, which is not the intended outcome in such situations. Instead, buyers should focus on understanding their rights and obligations under the SPA and the Rental Disputes Centre (RDC) guidelines.