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Propsearch guide to Dubai real estate: Developments
Dubai Lagoon Key Information
Location type
District
Phase
Under development
Status
Progress slow

Dubai Lagoon Overview

Dubai Lagoon is a residential apartment community under construction in Dubai Investments Park. The development spans seven zones across a 5.7m sq ft site and consists of 54 mid-rise buildings encircling two man-made lagoons. After a troubled 16-year history, it remains incomplete.

The Dubai Lagoon project was launched by Schön Properties in the heady development days of 2005.

Apartments in the property were sold ‘off-plan’ before construction began. Almost immediately permission to build was withheld while the Dubai Roads and Transport Authority, who were planning the new metro and highways connecting the city to the Expo 2020 site and the new Maktoum Airport, sought to obtain part of the land on which Dubai Lagoon was to be built for road building.

Despite the resulting delay the developer continued to promise delivery of the buildings.

As Dubai’s building boom accelerated, the cost of materials increased and contractors were faced with mounting costs. Eventually it became cheaper for the contractor to default and accept penalties than to renegotiate with Schön Properties.

The developer himself was saddled with mounting debt as the global financial crisis started to bite and investors began to default.

In 2008 the Dubai Real Estate Regulatory Agency (RERA) was inaugurated and began to address the investors’ complaints. The following year one disenchanted investor in Dubai Lagoon won a landmark case against the developer in the Dubai courts.

Time after time the developer insisted that the development would be completed, but the handover dates kept retreating, from 2007 as originally forecast to 2016.

In 2017 Schön Developments sold a chunk of the unfinished project to another developer, and the following year the Dubai Land Authority seized Schön’s property, plots of land and funds, leaving the shells of six apartment blocks as the only evidence of the 53-building project.

By 2021 the mothballed site of ‘one of the best master development communities in Dubai’ remains untouched, a testament to this sorry saga.

 

Companies Associated with Dubai Lagoon
Master Developer
Architectural Consultant
Proximity to landmarks
The Walk JBR
22 mins drive
Dubai Mall
29 mins drive
Burj Al Arab
25 mins drive
Al Maktoum International Airport
26 mins drive
Ibn Battuta Mall
17 mins drive
Dubai International Airport
34 mins drive
Palm Jumeirah
21 mins drive
Mall of the Emirates
24 mins drive
La Mer by Meraas
36 mins drive

Construction Updates

Dubai Lagoon History

Dubai Lagoon was launched in December 2005 with a forecast completion date of September 2007. The project was to comprise 53 residential buildings containing studios, one-, two-, three- and four-bedroom apartments. The first phase alone included 21 ground-plus-six and ground-plus-eight buildings for sale, housing 4,166 units.

Situated in Dubai Investments Park near The Green Community and with easy access to Sheikh Zayed Road and the new Emirates Road, Dubai Lagoon promised to be 'an ideal place to live, with expansive water views of the lagoon, lavish landscaped gardens and a proposed golf course surrounding the development’. The commercial centre was to consist of ‘a supermarket, laundry, world class gym, several swimming pools, sauna, Jacuzzi, squash courts, tennis courts and a mosque'.

Dubai Lagoon was being developed by Dubai based Town Centre Management Ltd who were sponsored by His Excellency Nasser Abdulla Hussain Lootah, the chairman of NASA Group, with Artec, one of the leading architectural firms in the region, responsible for the design and master planning. Better Homes were the marketing and sales agents for the project.

Sonia Husain, Executive Director of Dubai Lagoon, summed up the launch by saying: ‘Smell the difference, hear the difference, taste the difference, feel the difference. As soon as you step out of your car at our purpose built site office you will sense the difference.’

By the end of December the developer claimed that 80% of Dubai Lagoon had been sold out.

Contractor goes bust. Project delayed by six months.

On 21 February 2006 the project broke ground with the auspicious claim that ‘Dubai Lagoon is one of the first developers in Dubai to offer a guaranteed completion date with financial penalties in the favour of the new home owners if they are not met.’ On 4 March the developer announced that Dubai Lagoon was 100% sold.

Two months later Dubai Lagoon’s second phase was launched with an expected ready-for-occupation date of June 2008. Incentives allowed buyers various options, including a new Chevrolet motor vehicle.

By the end of July around 90-95% of the ground had been levelled and by the beginning of September cut and fill had ‘been pretty much completed’. At the same time 'The Presidential' building was launched, a ground-plus-7-storey building comprising two wings containing 58 ‘grand residences’ set within the complex of Dubai Lagoon.

At the end of November the on-site show apartment was ready for people to visit, although no construction work had begun. A week later it was announced that Phase 1 had been delayed till March 2008, a six-month slippage for which no explanation was given. On the same day, ‘to speed up construction work’, Dubai Lagoon appointed the Power Line Group from Thailand as the main works contractor ‘to carry out all aspects of the construction process’. Phase 2 was ‘still on time’.

Site levelled. Foundations started.

2007 kicked off with the first of what was to become a catalogue of mixed messages, with the new contractor, Power Line Group, stating on its website that the contract period was to run for 30 months, from December 2006 to May 2009 (http://www.powerlinegroup.com/news.asp?id=63), and the Dubai Lagoon Developer’s Team telling its investors that ‘Phase 1 will now be handed over second quarter 2008 and Phase 2 in fourth quarter 2008’

In March the developer offered this explanation for the delay in starting construction work: ‘The reason for the delay is attributed to RTA. This is a newly formed organization and requires a revised Traffic Impact Study to be submitted. The master developer Dubai Investment Parks' study is pending approval and once that is done, our team is ready to mobilize on site.’ They also explained that the ‘3rd Phase is the few buildings in the front of the development. Launch date and configuration of these is still being finalized.’

In the middle of April the developer’s newsletter contained the news that the RTA NOC (No Objection Certificate) and the Town Planning Permission had been obtained, the Building Permit Application had been submitted (the Building Permit being ‘the last piece of the puzzle’) and that ‘work shall commence shortly’.

In May, TV advertisements for the development were using the name ‘Schön Properties’.

At the end of the month ‘definite activity’ was seen on site with trucks and other machinery at work. But this was not the long anticipated start of construction because, according to the the Sales Manager, ‘Few other documents from DIP are missing and nobody knows how long it will take; first RTA and now Dubai Investments Park: all the bureaucracy has to be done and therefore we need to wait.’

Apparently the RTA had withheld permission while they assessed the impact of the Dubai Lagoon development on the plans for the new Dubai metro line and the new airport.

At the end of June an observer reported that the site had been excavated and the ground levelled, but that to start the construction they first have to lay the foundation, and before doing that they have to erect signboards at the site entrances. At the time the boards were still not there and no construction had started.

Eventually, on 22 July the Building Permit was issued by the Dubai Municipality, and the contractor, Power Line Gulf Construction LLC, began their two-week mobilisation.

On 23 August the two signboards were in place carrying the name of the developer, Town Center Management Ltd.

Meanwhile, posters around the site were casting Schön Properties as the developer. Schön Properties belongs to two brothers, Nasir Schön and Tahir Husain, who are the owners of Schön Group of Pakistan.

By mid September the foundations were being laid for the first six buildings

By December two years had elapsed since the launch of Dubai Lagoon, and three months since the first phase was to have been handed over to those who had invested in the project. Yet not one of the 53 buildings had even begun to rise out of the ground.

21 apartment buildings ‘to be handed over by year end’.

In January 2008 TradeArabia News Service reported that ‘the Dubai Lagoon project ... is expected to be completed by the end of 2009’.

Consultants from Schön properties were still insisting that most of phase one would be handed over by the end of the year. The initial delay, they said, was due to the RTA asking them to sell back 10 metres of their land so they could build a Purple Line Metro Station next to Dubai Lagoon. This would have obliged Schön to cancel some buildings or reduce their size. After much haggling they agreed on a solution in which no buildings were affected.

In April Schön Properties told an investor that phases one and two would be handed over by February 2009 and July 2009 respectively, and the whole project would be finished in June 2010 including the Mall, the Lagoon, the Quartet, Presidential and gardens, playgrounds, etc.

The spokesman added somewhat reassuringly that ‘Schön Properties will not run away with anyone’s money’. Many investors were not convinced.

On 1 May came the disturbing news that Better Homes, Dubai Lagoon’s appointed real estate agency and one of the country’s most respected brokers, had washed their hands of the project. For investors, many of whom were by now fearful of the project being delivered at all, this came as no surprise: they had been complaining for some time about being held to the original payment plan by a developer who was not adhering to the promised timetable for delivery.

Remember what the developer said in February 2006? ‘Dubai Lagoon is one of the first developers in Dubai to offer a guaranteed completion date with financial penalties in the favour of the new home owners if they are not met.’

By this time the escalating cost of materials had forced the contractor, Power Line Gulf, to submit new rates to Schön. Of course we know now that the global financial crisis was sweeping around the world at this time, but other construction projects in Dubai were also being hit by subcontractors cancelling their contracts due to abnormal increases in costs. Some of them were actually opting to stop work and pay the penalty because it amounted to less than their overall losses had they decided to continue.

One Dubai Lagoon investor reported that another of their apartments in Dubai Sports City has been delayed for two years, another in Jumeirah Village had a delay of one year, and a villa in Jumeirah Park might have a three year delay.

These delays were becoming evident everywhere in Dubai, due not only to an abnormal increase in construction costs, but also to RTA approvals being delayed, DEWA approvals and changes, Dubai Municipality, the handover of plots and changes in original designs due to approvals. In short, the explosion of development in the emirate had overtaken the establishment of necessary systems and controls.

Meanwhile, back at the Lagoon, Schön Properties kept the fantasy alive by telling Emirates Business that the first phase of their flagship project, comprising 21 low-rise residential buildings (1,750 apartments), would be handed over by the year-end. Better Homes was replaced as marketing and leasing agent for Dubai Lagoon by Schön Properties Broker.

By the end of May a mere four buildings had reached to the second floor, the contractor apparently having no intention of starting work on the other buildings whilst still in negotiations with Schön for an increase in rates.

At the same time the new The Dubai Property Court was set up by the government to deal with property cases in response to the rapid growth and development that Dubai was experiencing.

A group of investors were told by the CEO of RERA that Schön were in trouble for falsely advertising the Dubai Lagoon project as one where you could get a residence visa along with the purchase of a property. Only Master developers such as Emaar and Nakheel could sponsor people who buy freehold properties in their project. He added that if investors wanted to cut their losses and just get a refund, without compensation, they could do so immediately.

In June Gulf News reported that ‘Schön said phase one is due for completion in February 2009 and phase two in mid-2010’, while at the same time Schön’s CR Department told investors that ‘revised completion dates are being discussed with the contractor.’

On 20 August Business24-7.ae quoted RERA’s Chief Executive as saying: "The Dubai Lagoons project, which was initiated before the launch of RERA, saw some delays. RERA, in its monitoring responsibility, had to respond to investors' complaints and safeguard their rights and interests". He added that there were approximately 3,200 investors in Dubai Lagoon.

At the end of the month Schön Properties engaged Belhasa Engineering and Contracting Company to construct Zones 3 and 6, a total of 17 buildings, scheduled to begin in October 2008 and complete between the end of 2010 and beginning of 2011.

Schön Properties agreed to grant refunds to investors who were sold plots in 2005 with a completion date of the end of 2007, but it seems most investors chose not to exit the project. Not surprisingly many investors were planning to move in to their new apartments when the project was finished, while others were banking on earning a return on their investment by renting them out. Either way the delay was causing many investors a degree of financial hardship. Schön took a different view: "We didn't refuse to give them refunds, but their demands were unreasonable as some didn't just want their money back, but they wanted us to pay their rent for the past two years too", the developer's vice-president told Emirates Business, adding "I can reassure people 110 per cent they will get their properties".

Meanwhile investors continued to pay their instalments even though there had been no construction work on site since May, indeed, for many investors the foundations had not even been laid for their buildings. Schön was now wringing its hands, complaining that it had suffered very high costs due to delays: ‘The Dubai Lagoon project, which was initially estimated at a cost of $272 million, has today bumped its value to $598 million’.

Emirates Business went on to say ‘In the three years since the development was launched, rising construction costs have meant the project's budget has more than doubled, from Dh1 billion to about Dh2.2bn. Therefore remaining plots ... will be sold at higher prices in a move by the company to safeguard its profit margin. The whole development is due for completion in the middle of 2011.’

The press were now onto the story. On 15 September, under the headline ‘Trouble not over for Dubai Lagoon’ 7DAYS reported that Schön Properties had told them that ‘payment re-scheduling is not under consideration’, despite the comments of a senior legal advisor from RERA on Dubai Eye 103.8’s Business Breakfast that payment schedules should be aligned to construction timetables, and that RERA was working towards this with Schön.

Said one named investor: “They’re refusing to re-schedule, even though it makes clear sense. If you’re going to give me my apartment in 2011, why should I pay you in 2009?” Another investor called Schön about his payments: “I was put through to the accounts department and they said everything that you paid from 1 January 2008 is in the escrow account and everything before that is in our account.”

In mid-December Arabian Business reported that ‘Schön Properties has announced that the first eight buildings of its much delayed Dubai Lagoon community project will be ready in the fourth quarter of 2009.’ The reporter went on to point out that ‘Residential units at the Lagoon were initially scheduled for completion by December 2007.’

Business 24/7 hit the nail on the head: ‘The announcement has been made to allay fears of non-deliveries because of the current economic situation. The concern about Dubai's public and private sector debt escalation has worried everyone, especially property investors and end-users who fear the downturn may result in construction slowdown; or worse, abandonment of projects.’

The ‘current economic situation’ being the global financial crisis.

‘Still a sand pit.’

In April 2009 the Vice-President of Schön Properties confessed, “The project has been set back a little, due to numerous reasons. Firstly, the expansion of the two-lane road into a six-lane highway took out about 40 metres off our plot. Secondly, there was an internal feud between partners of our first contractor so we replaced them. We negotiated with the Roads and Transport Authority (RTA), who were cooperative. We are also working with investors to move them into zones that will be completed earlier.” He added that none of their projects had been put on hold.

In May Schön issued a press release saying that in order to ‘accelerate the construction’ of the apartments in the development, it had replaced the ‘underperforming Power Line Gulf Construction Dubai’ and appointed Bin Sabt Building Contracting Company, along with Belhasa Contracting and Engineering Company as the ‘two preferred contractors’.

On 3 August construction week online reported Schön Properties executive director as saying: “We are thoroughly delighted with the commencement of enabling works in the final phase of the project and the fact that all units in Dubai Lagoon are now under construction.” The report went on to say that ‘Schön Properties claims BHECC and Bin Sabt are progressing ahead of schedule in all other parts of the development with delivery of 442 units by the end of 2009. The first eight building structures have been completed up to the 7th floor.’

If the disgruntled investors were not impressed with Schön Properties’ performance, the industry thought differently. In October the developer was honoured with two CNBC Awards for Best Projects in Dubai, Dubai Lagoon and The Schön Business Park. The citation read: ‘Dubai Lagoon, in the heart of Dubai Investment Park, is famed for its deep blue man-made lagoon with a unique filtration system that ensures the water always remains fresh, clear and sapphire blue. The mammoth real estate project that recently commenced the last phase of its construction is due to deliver its first batch of apartments shortly, and has announced the completion of the project's first apartment during October 2009.’

As late as 14 November the vice president of Schön Properties said: "We will deliver four to five apartments a day, so the delivery process should be completed by the first quarter of 2010. The whole project will be ready by the end of 2011." But, gulfnews.com reported, ‘Investors who have visited the site find this hard to believe. Dubai-based investor NI says, "It is still a sandpit. The buildings that look the closest to completion are just shells." NI says an investors group was formed in April 2008 as a result of "construction progress, lack of customer service, false promises, non-issuance of contracts, non acknowledgement of investors' complaints and lack of compensation."’

First four zones to be finished by 2012.

The end of 2009 came and went with no sign of completed properties.

In May 2010 Schön Properties awarded yet another construction contract, this one to Commodore Contracting LLC, in line with its aims to accelerate construction within Zones 2 and 4 of the project. ‘Zone 2 actual construction is expected to start within three weeks and the ground floor will be hit by mid-September, according to the schedule set by the contractor,’ announced the developer.

Towards the end of May the 132-11 kVA ‘Dubai Lagoon’ substation was completed by DEWA, ‘leading up to the scheduled handover of the project, with Zone 1 slated for the end of 2010’.

In July Schön awarded Crystal Lagoons Corporation the contract to build the main water features, with a pilot lagoon expected to be completed by the end of 2010, in time for the scheduled handover of Zone 1. ‘All the lagoons, which will feature intense turquoise blue water that resembles tropical seas. The lagoon system will also boast of permanent remote operation and control to ensure optimum quality and crystalline water at any moment’, said the developer.

That same month Construction Week ran a story called ‘Lagoon low-down’ in which it said: ‘Four years after it was launched, the notorious 529,500 sq m Dubai Lagoon project is at last making good progress - with the first four zones scheduled for handover by 2012.’

‘Characterised by a series of delays, contract terminations and bad feeling between developers and investors, one might say the project got off to a rough start. Today, with its three main contractors working cooperatively, but separately, across four ‘Zones’, Dubai Lagoon looks more like a construction site.’

‘As the first part of the project to be handed over, Zone 1 is scheduled for completion before the end of the year. Its eight residential towers ... will provide 442 residential apartments to patient investors. But with the hand-over date just months away, it is important the developer does not wait too long to appoint new subcontractors. Still to be awarded are contracts for the aluminium and GRC works, the ceramic supply, joinery work, marbling and false ceiling work.’

‘Adding to the pressure is the fact that upon delivery, Zone 1 will have its own ETS (Electrical Thermal Storage) room, linked to a chilled water system, to provide air conditioning for the project. Located in the basement of the mosque or ‘Zone 9’, it must be put in place for the Zone to be handed over on time. “We will probably start construction in about six weeks and finish in October,” says the developer.’

‘The lagoon, (one of several planned for the project) is also scheduled for completion “in time for the Zone’s delivery”.’

Spool forwards another three months and here’s what Arabian Business had to say: ‘Schön Properties has said handover of the project’s first residential units is slated to begin in February next year. The zone’s eight towers are then scheduled for handover at a rate of two a month and Schön is forecasting that all 442 units will be occupied by July 2011.’

‘Earlier this year, Schön Properties confirmed that zones 5, 6 and 7 in the project – covering 1,708 of the planned 3,826 apartments – had been put on hold, to prioritise the construction of zones 1,2, 3 and 4. “The entire project, all seven zones, could take up to five years [to deliver] but the first five zones, which is what is sold, those zones will be 2012,” Schön said.’

The news story ended by stating: ‘More than 90 percent of Dubai Lagoon’s 2,000 investors defaulted on their payments in the wake of the emirate’s real estate crash, which saw property prices in some areas halve.’

On 22 November, in a message of support to exhausted fellow investors, one reported: ‘Drove by the site yesterday and one of the blocks has been painted.’

Handover pushed back five months.

‘Fresh delays for troubled $817m Dubai Lagoon project’ ran the headline in a February 2011 edition of Arabian Business, a clear sign that something serious was happening. ‘Promised handover pushed back by five months after utilities delay’, says developer.

The article carried a snapshot of the project’s progress, or lack of progress, since its launch in 2005. ‘Dubai Lagoon will fail to meet a February deadline for handover of its first residential units, the developer said.

‘Handover will be pushed back five months to July after delays in utility connections put the project behind schedule, the vice president of Schön Properties told Arabian Business.

‘Essential infrastructure, such as water and electricity substations, had proved slow, but the developer is “in the process of signing contracts,” he said.

‘Schön in October said eight buildings in the zone 1 of the project were nearing completion and that delivery would begin in February at a rate of two buildings a month.

‘Schön had previously pledged to work at “full speed” to meet the handover deadline. The development is currently more than four years behind schedule.

‘Dubai Lagoon, which spans seven zones across a 5.7 million sq ft site, was among the dozens of real estate projects in Dubai that faced funding issues following the collapse of the emirate’s property market in 2008.

‘Hundreds of the project's 2,000 investors defaulted on their payments as construction on the site slowed to a crawl.

‘In early 2010, Schön Properties suspended work on zones 5, 6 and 7 – covering 1,708 of the planned 3,826 apartments – to push through the construction of zones 1,2, 3 and 4.

‘Schön had initially forecast that all 442 units in zone 1 would be occupied by July 2011, but handover is now likely to be completed towards the end of the year.’

It wasn’t.

Handover targeted for December.

In June 2012 came the year’s only anecdotal comment about Dubai Lagoon: ‘Paid a visit to the site today. One of Schön's ‘Relationship Managers’ met us and said that work is only going to happen on C10 and C12 buildings. The contractor has not done any work for over a month due to lack of payments from Schön. When work commences (expected in the next couple of weeks), they will continue with C10 and C12. They're targeting handover for December.’

Nothing more until 22 September 2013, ‘Visited the construction site yesterday - it all looked very dead, no-one around at all, so it seemed...’.

Zone 1 completion to be in 2014.

In February 2014 Property Weekly carried an article saying that Schön Properties had a new investor on board who had injected ‘a good amount of money’ into the project. The plan was to finish building-by-building. The site would be busy again by the end of the month; Zone 1 would be ready in 2014, Zone 3 would be ready in 2015, and Zones 2 and 4 would be ready in 2016.

On 23 February Emirates 24|7 followed through with this: ‘Developer of Dubai Lagoon assures completion after delays. With funding in place, Schön Properties to start Zone 1 handover in H2 2014. The developer of Dubai Lagoon project in Dubai Investment Park has confirmed funding is in place to expedite the completion of the master development. “We have finalised funding for the project and the project will be built on a funding and off-plan sales model,” a spokesperson for Schön Properties, the developer, told Emirates 24|7.’

“After the previous [property] crash, we will not rely solely on off-plan sales going forward to build the development, and have arranged partial funding for completion of the project,” he revealed.

The project ... was expected to be completed in 2008. Citing numerous reasons for delays, the spokesperson said: “There were many factors for the delay of the Dubai Lagoon project, despite our best efforts to avoid them.

“The project was launched on January 2006, but a hold on the building permit was issued on March 2006 because of the Road and Transport Authority’s Purple Line of the Metro being incorporated in the master plan.

“After the new affection plan, given by Dubai Municipality and a new building permit was awarded in November 2007, the real estate market crashed in October 2008, decreasing sales by 98 per cent and decreasing collections by 95 per cent.”

He added that since 2008 until September 2012, the project was being built, albeit at a slower pace with almost Dh75 million being spent on construction for Zones 1, 2, 3 and 4 in that period.

“During this period, the collection from existing buyers nearly stopped.

“Since then, the collections from existing buyers have improved and with Expo 2020, the project is on track for expedited completion.”

It was in October 2012 that RERA implemented a building-by-building completion policy, with work starting on building C12, the spokesperson said.

The developer claims that work on the Zone 1 is nearly completed and handover is in the second half of 2014. The entire master development is expected to be completed by 2016.

Asked what guarantees have been giving for completion to RERA and buyers, the spokesperson said that the company has offered penalty clauses on delays to existing and new buyers to compensate them for delay and to guarantee them completion of the project.’

In June Schön reportedly said that it had secured AED339 million ($92.2 million) to enable the much delayed scheme to be completed. It had signed an agreement with Xanadu Real Estate Development to complete the project and had subsequently awarded a AED678 million construction contract to PGS Gulf Contracting Company. “We are pleased to tie-up with Xanadu Real Estate Development to complete construction of the project. The funds are being utilised for the completion of Dubai Lagoon project, which also includes the Juma Masjid located within the residential project. Schön-Xanadu have instructed PGS Gulf Contracting to enhance the finishing of the project.

"Given its location and quality construction, Dubai Lagoon is poised to be one of the best master development communities in Dubai."

PGS Gulf Contracting Company said work was slated to complete in December 2016 with mobilisation works already starting on site.

In mid-November an observer reported that ‘There doesn't look like there is much activity on site, although it is not completely deserted’.

‘Site looks abandoned.’

Construction continued at a snail’s pace in 2015, leading one visitor to claim in May: ‘Looks like the first two buildings will be ready for handover in July.’

That clearly didn’t happen because almost a year and a half later, in October 2016, it was reported that ‘there is absolutely no on-going activity. The site 'looks' abandoned by the construction team’.

Xanadu Real Estate Development to deliver Dubai Lagoon.

In January 2017 a couple of buildings from the planned 36 reportedly looked complete but there did not appear to be any construction activity. One investor claimed ‘From what is visible it would appear that the developer has milked this deal for what they can and abandoned it in favour of another development that they may or may not complete!’

The following month came this surprise announcement:

‘Xanadu acquires 2 million square feet of Dubai Lagoon from Schön.

‘Schön Properties transferred 2.33 million square feet of development at Dubai Lagoon to Xanadu Real Estate Development LLC, it was announced today. The move is part of the overall development of the Dh7 billion master-planned mixed-use project.

‘The agreement involves the development of three phases of Dubai Lagoon, including Rowan, Lilly and, Winterberry developments. Dubai Lagoon will now be developed by Xanadu Real Estate Development, a Dubai-based private developer.

‘“The deal signifies the strength of partnership in developing large projects,” said Noorul Asif, Chief Operating Officer of Schön Properties. “This agreement will ensure Xanadu Real Estate Development will deliver Dubai Lagoon. We are confident with Xanadu’s track record.”’

By September no progress was reported on site. On the contrary, ‘the units that are pretty much complete are falling into disrepair with cladding and tiling falling away’.

Schön Properties’ assets seized.

Finally, in August 2018, as reported in The National, Schön’s property and funds were to be seized over its failure to deliver Dubai Lagoon development.

The news story continued: ‘The property, plots of land and funds registered to developer Schön Properties will be seized after hundreds of investors in the Dubai Lagoon community have demanded their money back.

...Hundreds of investors have asked for funds to be returned, filed court cases, petitioned the land department, the Real Estate Regulatory Agency, a government authority that regulates the property sector.

...There is no information available about the amount of money deposited in Schon’s escrow accounts

...Investors in the UAE and around the world now dared to hope that they would receive refunds of money invested into projects that never materialised.

A barren site.

In August 2021 Gulf News ran a story about investors who were still hoping to see some movement happen on the 16-year Dubai Lagoon project. They believed that the land assigned to Dubai Lagoon was far more valuable than at the time of the launch, and that if it could be sold to a new developer, the investors would stand some chance of recovering their funds.

November 2021 Update

A handful of the buildings are under construction although not many workers are on site.

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