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Dubai's Recent Legislation on Unfinished Real Estate Projects

Dubai's dynamic leader, The Ruler, HH Mohammed bin Rashid, has recently implemented ground-breaking legislation to tackle the issue of unfinished or cancelled real estate projects.


Under this legal development, a Special Tribunal for the Liquidation of Cancelled/Unfinished Real Estate Projects has been established to efficiently manage and resolve disputes and claims within the emirate. This dedicated committee, formed by the Dubai Judicial Council, holds significant responsibilities in ensuring the smooth liquidation process of these projects. It also aims to address ongoing complaints from previous committees that were assigned with similar tasks in the past. It is imperative to note that these efforts demonstrate Dubai's commitment to implementing fair and effective solutions in the realm of real estate.


Dubai construction projects face potential cancellation or suspension due to various factors:


Inadequate Communication: lack of communication among project managers, stakeholders, and cross-disciplinary teams can result in significant gaps, leading to decreased productivity and organizational chaos.


Insufficient Planning: Poor project planning is a major contributor to project cancellations or delays in Dubai’s real estate. Comprehensive planning, including project scope, task dependencies, work breakdown structure, risks, resource schedules, delivery schedules, site surveys, and logistics, is crucial for maintaining control. Using outdated tools for project management can lead to inconsistencies, especially without real-time updates.


Lack of Proper Approvals: Premature initiation of projects by some investors in Dubai, assuming approvals are secured or will be granted later, can lead to complications. Real estate projects in Dubai may undergo changes or outright rejection during the approval process, impacting budgets. Failing to establish comprehensive plans for obtaining necessary construction permits is a primary cause of cancellations or suspensions.


Cost Overruns: When project expenses exceed initial budget estimates, cost overruns occur. Changes in project scope or delays due to inadequate resource allocation can contribute to overruns. Various factors, such as resource shortages, adverse weather, machinery failures, conflicts, or risks, may cause schedule delays and financial losses.


Lack of Leadership: Effective project leadership is crucial for timely and informed decision-making. In Dubai’s real estate construction, leaders must possess expertise and sound decision-making skills. Poor leadership can lead to inefficiencies, schedule delays, and budget overruns, while team conflicts can disrupt interdependent tasks.


Seeking guidance from property lawyers in Dubai for all legal matters related to real estate development is advisable. Their expertise can ensure compliance with regulations and mitigate potential legal challenges in the emirate.


Lawyers and legal consultants in Dubai are specifically known for providing thorough, high-quality legal advice and services and treating our clients and lawyers with respect and courtesy.


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