The project called Dubai Lagoon was first launched by Schon Properties in 2005
Property Buyers Left in Limbo: A 17-Year Wait for Dubai Lagoon Project
Hundreds of property investors are grappling with uncertainty and frustration as a Dubai development launched 19 years ago faces cancellation. Recently listed as “under cancellation” by the Dubai Land Department, the project has left buyers questioning the fate of their long-awaited investments.
Among these buyers is Bibhu, a Dubai resident who has been yearning for his dream home in the Lily Zone at Dubai Lagoon, located in Dubai Investments Park (DIP). Bibhu purchased his property in 2007, and after 17 years of waiting, he is still searching for clarity about the now-abandoned project’s status.
Bibhu’s story is not unique. At least 111 other buyers share his predicament, holding on to the hope of either seeing the project completed or receiving a refund for their investments.
The Rise and Fall of Dubai Lagoon
Originally launched by Schon Properties, the Dubai Lagoon project was an ambitious plan featuring 53 mid-rise buildings with over 4,000 residential units, ranging from studios to four-bedroom apartments. It was one of the first developments to promise a guaranteed completion date with financial penalties for delays.
The project generated significant buzz during its initial phases. By March 2006, the first phase had completely sold out within 54 days of its launch, with construction scheduled for completion by September 2007 and handovers expected in 2008.
However, a series of challenges, including financial setbacks and stakeholder disputes, derailed the project, leaving investors in limbo.
Years of Silence and Broken Promises
For years, investors were left in the dark, receiving little to no updates from the developer. In 2017, the Dubai Land Department and the Real Estate Regulatory Agency (Rera) stepped in, handing over the project’s Lily Zone to Xanadu Real Estate Development. Xanadu assured investors that the project would be completed within two to three years, but those promises also fell short.
British investor Heather Copland shared her experience, having invested in a one-bedroom apartment in 2007. She paid AED 584,250, along with a parking fee, only to see construction stall. “We were encouraged to pay the remaining balance and additional fees to expedite completion, which we did. However, years later, we are still waiting, and the project’s viability is now in question,” Heather said.
Dreams on Hold
Bibhu, who has been a UAE resident since 1998, invested in a one-bedroom unit and paid 75% of its value. He described the long years of waiting and repeated delays. “Xanadu cited the lack of an access road as the main obstacle, but now the project is marked as canceled. The thought of losing everything after 17 years is devastating,” he said.
Many buyers, like Bibhu and Heather, are now left wondering who will be held accountable for their financial losses and emotional distress.
A Plea for Accountability
The Dubai Lagoon saga highlights the struggles faced by property investors dealing with delayed or canceled projects. While some buyers hold onto hope for compensation or project revival, others are left questioning the future of their investments and the accountability of those involved.
