Luxhabitat-Dubai Sotheby’s International Realty tie-up turns to a lawsuit

Luxhabitat is suing its former real estate partner for AED 439 mn (USD 119.5 mn), alleging Dubai Sotheby's International Realty hid revenue owed to it by routing income through another brokerage, according to DIFC Courts filings cited by Bloomberg.

Dubai Sotheby's International Realty operates independently of the global Sotheby's International Realty network — after spinning off from the auction house back in 1976 — and is led by Chairman and CEO George Azar, who also owns the brand's Saudi Arabia and UK franchises.

The two sides: Luxhabitat alleges its former partner underreported sales, withheld audited accounts, and funneled a “substantial” share of income through Prime Realty Real Estate LLC to avoid paying out its contracted 5-6% cut of combined gross revenue. Dubai Sotheby's counters that Luxhabitat was only ever a marketing services provider — not a joint-venture partner — and that the damages claim is inflated.

It’s not the first time Luxhabitat sues: The pair launched a “long-term strategic alliance” in 2020, and became known as Luxhabitat Sotheby’s International Realty. In 2023, Luxhabitat tried to stop Dubai Sotheby's International Realty from dropping its name and also says it was entitled to a 5-6% cut of combined gross revenue. It sued in late 2024, and Dubai Sotheby’s later failed to get the case dismissed and was ordered to pay more than AED 800k in legal costs.