Dubai Developer Sends Legal Notices to Investors

Hydra Properties has become the first Dubai developer to issue legal notice to property investors who are late with their payments. Notices have been sent out to real estate investors who are behind with their payments on Hydra’s flagship project, Hydra Village. The letter outlines that the developer will look to reacquire the properties if the outstanding debts are not made good, and should the property be reacquired, the property purchaser will lose all the money they have paid so far – including reservation costs and all installments.

Although Hydra Properties have said that they have sent the legal notices to just a few property investors, others claim that they have been hit with daily fines.

Hydra Properties have already upset some Dubai property buyers thanks to the slow pace of the developments and price increases – many of which investors are claiming that there was no consultation for. Hydra Village was originally scheduled to be completed in 2009 however the completion date has now been pushed back to 2011. Some investors have said that they have requested that their mortgage lenders cease payment on the projects until the actual state of the development along with the latest contracts have been finalised.

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