Hydra Properties is an Abu Dhabi based developer company that deals with real estate. The company is based in the United Arab Emirates with its headquarters in Abu Dhabi and deals with both commercial and residential properties (Hydra Properties 1). It has a workforce of more than 5000 workers who ensure steady progress in the company’s construction work (Hydra Properties). The company makes profit by buying land and constructing properties, which it then sells to people who are interested in a profit. The company used to be among the biggest developers in Abu Dhabi before the global economic meltdown.
The economic meltdown resulted in the price of real estate to plunge. Consequently, people lost their homes as they were no longer able to afford them. In 2012, the company was ordered by a court to sell three plots that were in Dubai in order to pay homeowners and property owners (Property wire 1). This was meant to compensate both the property owners and homeowners for delays caused and for cancellation of projects.
The meltdown affected real estate the most. It forced the company to raise prices on property and even cancel some projects. With the meltdown, developers decided to change their master plan in order to be able to continue with construction of property at a cheaper price. They also changed the payment schedules that had been agreed upon by buyers. This did not go well with the buyers who took them to the court to demand compensation from Hydra Properties. Due to the meltdown, some projects were put on hold and buyers wanted the developers to refund them over stalled projects. Some of the projects that were not completed as planned included Hydra Village, Hydra Golf Walk, and Hydra Avenue.
At the Emirate’s Court, it was ruled that Hydra Properties had to sell plots that were worth 164 million AED (Property wire 1). The plots were located in Al Barsha and Burj Khalifa. The case followed another one where Abu Dhabi developers were asked to pay AED11 million to eight property owners (“UAE developer forced to sell land to pay compensation to home owners”). There are other cases of the same nature where 100 buyers have filed cases to get refunds for stalled projects (“UAE developer forced to sell land to pay compensation to home owners”). There are also other cases represented by the Dubai based Legal Group. Although the buyers have not won the case, the legal representation hope that once they win, they will benefit from the forced auction (“Hydra Properties”).
From the court rulings, it is clear that homeowners were the winners in the cases. Although some cases are ongoing, there is hope for the homeowners. There are other cases pending in court where several buyers have filed a case to have money refunded due to stalled projects. So far, eight cases have been won. Although some cases are still ongoing and not won, homeowners would not face risks of exhaustion of Hydra’s asset because their share in those assets would be secured through the attachment (“Hydra Properties”). This is possible as long as the court can grant them an interlocutory attachment order.
The court rulings have ensured that homeowners have not lost their money and with the help of the Dubai based Legal Group and the judicial system in Dubai, there is still hope for both home owners and property owners who were victims of the developers (Property wire 1).
Works cited
Hydra Properties. “Welcome to Hydra Properties”. Web.
“UAE developer forced to sell land to pay compensation to home owners”. Property Wire. 2012. Web.
“Hydra Properties forced to auction land to repay homeowners”. Arabian Business. 2012. Web.