Hydra Properties Is Being Forced to Auction Three Plots of Land in Dubai

Arabian Business reported that Hydra Properties is being forced to auction three plots of land in Dubai to settle outstanding payments owed to homeowners who won legal cases against the developer for delayed and cancelled real estate projects in Abu Dhabi.

Abu Dhabi's Court of First Instance ordered the developer sell AED 164 million worth of land including two plots in the Burj Khalifa area and one in Al Barsha in three separate auctions starting December 12th 2012 at the Ramada Downtown Dubai.

Mr Fareya Azfar head of arbitration at The Legal Group said that proceeds from the auction will be used to pay off outstanding creditors including 8 home owners owed AED 11 million. It's a very rigorous implementation of the execution procedure it shows the severity and the consequences of not paying which can lead to auctioning.

Local developers faced a slew of legal cases from buyers in the wake of the 2008 to 2009 economic downturn which led to billions of dollars worth of projects being put on hold or cancelled while house prices plummeted around 60 percent from their peak. More than 100 buyers last year filed cases for refunds from Hydra for property in stalled projects, including Hydra Village, Hydra Avenue and Hydra Golf Walk.

Mr Azfar said that Dubai based The Legal Group has won eight cases against the developer to date. Successful cases have included owners of property in Hydra Avenue, Hydra Executive and Marina Spirits. The Legal Group said it is also representing other buyers that have not yet won their cases but in the event they do, will also benefit from the auction.

He said that "If the court grants us the interlocutory attachment order then while these purchasers' cases are ongoing, they will not face the risk of exhaustion of Hydra's assets because their share in those assets will be secured via this attachment."