Hundreds of property buyers are left in uncertainty, fearing the loss of their investments after the Dubai Lagoon project, launched in 2005, was recently marked as “under cancellation” by the Dubai Land Department.
For 17 years, Dubai resident Bibhu hoped to see his dream home in the Lily Zone at Dubai Lagoon in Dubai Investments Park (DIP). He invested in 2007 but is still waiting for clarity about the now-abandoned project.
Years of Waiting and Broken Promises
Bibhu is among at least 111 buyers anxiously awaiting a resolution either the delivery of the project or a refund. Dubai Lagoon was launched by Schon Properties, featuring 53 mid-rise buildings with over 4,000 units ranging from studios to four-bedroom apartments. It was one of the first developments to promise guaranteed completion dates with penalties for delays.
The first phase sold out in just 54 days after its 2006 launch, with completion initially scheduled for 2007 and handovers by 2008. However, financial challenges and disputes delayed the project indefinitely, leaving buyers without updates for years.
In 2017, the Dubai Land Department and Real Estate Regulatory Agency (RERA) stepped in, transferring the Lily Zone project to Xanadu Real Estate Development. Investors were told the project would finish in 2-3 years. Unfortunately, these promises also went unmet.
Broken Dreams and Financial Losses
British buyer Heather Copland, who purchased a one-bedroom apartment in 2007 for AED 584,250, described years of frustration. After paying the remaining balance and parking fees to Xanadu, she realized progress had stalled. Heather expressed fears that the buildings, left exposed to the elements for years, may no longer be viable for completion.
Bibhu, an Indian expatriate who paid 75% of his unit’s value, said, “I’ve waited 17 years for my home, but now I fear I’ll lose everything. Who will take responsibility for this?”
Status of Dubai Lagoon
The 5.7-million-square-foot project was among many developments affected by the 2008 financial crisis. On October 6, the Dubai Rest app listed the project as “cancelled,” later updating it to “under cancellation” on October 22. This status prevents refunds from being processed until further decisions are made.
Buyers like Omran Ali Juma, a 30-year-old Emirati investor, paid upfront for their units, only to face endless delays. Omran regrets not researching the project more thoroughly but argues that sales under such conditions should never have been allowed.
Hope for Refunds
For some buyers, like Netherlands resident Hani Gandhi, the prospect of a refund offers slight relief. After discovering the cancellation status in 2024, Hani submitted a refund application and is awaiting court decisions. However, others, such as Alwyn Fernandes, who accepted a transfer to Dubai Lagoon after another failed project, remain in limbo and unsure how to recover their money.
A Call for Accountability
Investors continue to call for transparency and accountability. Many have invested their life savings in the project, with some nearing retirement and others facing financial distress. As they wait for resolutions, they express frustration over the lack of action and clear answers from developers and authorities.
