Investor loses Dh20 million claim against Dubai developer in Al Barsha South dispute

A Dubai property investor has lost a legal battle to reclaim more than Dh20 million from a real estate developer over multiple apartments in Al Barsha South, after the case was dismissed at all three levels of the emirate’s courts.

The case stemmed from a Dh38.3 million deal for apartments in Al Barsha South. The investor had already paid more than Dh23.5 million, including Dh200,000 in cash, before seeking a refund of Dh20.5 million plus Dh1 million in compensation and 12 per cent annual interest.

The Dubai Real Estate Court ruled in favour of the developer, a decision upheld by both the Court of Appeal and the Court of Cassation.

According to Dr Hassan Elhais, legal consultant at Awatif Mohammad Shoqi Advocates and Legal Consultancy, the Supreme Court found that the absence of payments being deposited into the project’s escrow account did not justify a refund — particularly as the units had already been delivered to the investor, who later resold them.

“This was a key issue,” Elhais said. “The court found no harm had been proven from the funds not entering the escrow account, particularly since the investor did not even seek termination of the sales and purchase agreement.”

The judgement also noted the investor failed to show that resale prices were affected by the payment method. The court concluded the developer had met its contractual obligations on delivery.

The investor further claimed that, despite paying the purchase price, some receipts for payments were not provided. The court rejected this argument, accepting the developer’s confirmation that all payments had been received..