In Dubai's real estate market, when a project with a completion rate between 40% and 60% is fully suspended and the original developer ceases operations, as was the case with the Dubai Star project, specific protocols are enacted to safeguard investors' interests.
Regulatory Intervention
The Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) actively intervene in such scenarios to protect all stakeholders and facilitate the project's completion. This may involve appointing a new developer to take over and finalize the project. For instance, the Dubai Star project, which had reached approximately 38% completion before suspension, was successfully completed by Preatoni Group after they assumed control with support from local authorities and investors.
Investor Rights and Refunds
If a project is canceled by RERA, developers are mandated to refund all payments received from purchasers, adhering to the procedures outlined in Law No. 8 of 2007 concerning escrow accounts for real estate development.
Legal Recourse
Investors retain the right to pursue legal action if they believe their rights are compromised. This can involve filing complaints with RERA or initiating court proceedings to seek appropriate remedies.
