Recently, three decisive rulings were issued in real estate disputes between developers and buyers in Dubai. Some rulings favored the developers, others the buyers, confirming that Dubai’s real estate law is comprehensive and fair, protecting the rights of all contractual parties.

The first ruling involved returning a residential unit valued at 2.38 million dirhams to a developer and fining the buyer 250,000 dirhams as compensation for damages due to non-payment of installments. This ruling shows that breach of contract terms may lead not only to contract termination but also to damage compensation. The second ruling from the Court of Cassation favored an investor who faced an unsupported claim of 20 million dirhams by a developer, after proving full payment of previous obligations. This ruling sent a clear message that arbitrary claims or financial pressure by developers without solid evidence are unacceptable.

The third ruling obligated a buyer of a luxury unit to pay 1.68 million dirhams, representing 80% of the deposit, plus a 5% annual legal interest, after failing to complete the deal despite official warning. This ruling reinforced the fundamental civil transactions law principle that paying a deposit makes the contract valid, binding, and withdrawal has consequences.

These three cases confirm that Dubai’s real estate laws support everyone and provide firm market rules. Anyone entering the sector—investor, buyer, or developer—must understand that signing the contract is a point of no return except as stipulated by its terms and applicable laws. Developers must ensure all claims are documented and supported by clear evidence, as the law does not allow arbitrary behavior against buyers or claims without documentation.

Dubai law respects the contractual obligations of real estate developers and fully protects their rights, while also respecting and protecting buyers’ rights. The core message is that Dubai’s real estate market is a balanced environment safeguarding all parties’ rights, with strict judicial oversight ensuring contracts are not mere formalities but foundations for a transparent investment environment that enhances Dubai’s status as one of the world’s most attractive real estate markets.