Abu Dhabi developer Hydra Properties is reviewing all of its 13 projects in light of the UAE real estate downturn and will cancel any that do not generate enough investor interest, its CEO said on Sunday.“We will look at how the market is working. If there is 10 percent or less interest then we will reconsider that project,” Ali Saeed bin Sulayem told reporters in Abu Dhabi, without going into further detail.
“At the moment all 13 projects are ongoing, but each will be reviewed.”
The majority of Hydra’s projects are still in the early stages of construction. The developer has nine projects in Abu Dhabi, three in Dubai and another in Lahore, Pakistan.
The UAE real estate market, and particularly that of Dubai’s, has suffered at the hands of the global economic downturn, with prices falling around 50 percent from their 2008 highs.
The price collapse has seen billions of dollars worth of projects either cancelled or put on hold and thousands lose their jobs as developers cut back.
“At this time none have been cancelled. If they are we will announce it at the time,” Bin Sulayem said.
The downturn has also hit investors who have struggled to meet payments amid tight credit conditions, leading to rising defaults.
Bin Sulayem admitted some customers have experienced problems meeting payments.
“Some customers have encountered problems and we are working with them to help find a reasonable solution to their individual situations,” he said.
“Of all the projects there are still 20 percent of monies owned outstanding.”
On Hydra’s most high-profile and controversial development, Hydra Village, Bin Sulayem said the much-delayed project will now be delivered by 2011.
The 2 billion dirham ($545 million) Hydra Village was launched in 2006 and originally due to be completed this year.
The project has been beset with problems and investors are currently considering legal action against Hydra in a bid to either recover money they have invested or have their contracts revised.
Investors are angry at having the masterplan and their payment plans revised, as well as being pressured to accept a revised contract.
Bin Sulayem said the company is addressing investor concerns, without elaborating.