About 56 houses in Jebel Ali are to be knocked down, said developer Nakheel. The villas that have been empty for more than a decade will finally be demolished to make way for new housing.
Many families moved into the properties at Garden View Villas 14 years ago, but quickly moved out after cracks appeared in walls and questions were raised about the build quality.
Last year, families continue to be removed from villas with what Nakheel called issues of "structural settlement".
The development is significant as it was among the first in Dubai to offer title deeds to expat buyers, shortly after laws changed to allow foreigners to own property in the early 2000s.
Nakheel this week said demolition will begin this month and that reconstruction would "begin in due course".