Dubai Property Investors Defaulting

Leading Abu Dhabi property developer Hydra Properties have admitted that around a fifth of investors are behind on their payments.

The property company has had a turgid year so far, with complaints from many investors that work on their Hydra Village project is well behind schedule and has cost more than was originally agreed. Investors were also upset when Hydra Properties sent property investors who have been late paying letters threatening legal action. Payments have been rescheduled however up until recently, Hydra have denied that they were having problems with investors defaulting.

However Hydra have now admitted that around 20% of property investors are having difficulties keeping up with payments on their properties.

Property investor confidence in Hydra Properties has dwindled over the past few months. Although Hydra Village was meant to be completed this year, only a handful of show homes have actually been completed. The company is currently assessing their current developments and if the sales don’t pick up, they may ditch some of their development projects which have sold 10% or under of the property units. However there are currently no firm plans to stop development on any of their sites.

Hydra are not the only Dubai property developer to face problems with investors defaulting. Earlier this year Dubai Pearl revealed that up to a third of their property investors on their $4.1 billion development had had to have their payments rescheduled because of defaulting issues.

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