Developers begin to repossess units

U-Bora is one project where the developer may take back some units.

At least two major companies have taken back units from defaulters who have failed to rectify their status, according to news reports today.

Property developers have begun to repossess units from investors who have defaulted on their payments.

Bonyan International and Cayan Development have already repossessed some units, while South Korea's Bando Construction is also looking to take back a few properties.

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"We have repossessed some units from investors in our Dubai Gate 2 project in Jumeirah Lake Tower,” Anas Atatreh, vice-chairman, Bonyan International Investment Group told Dubai-based business daily Emirates Business.

“Currently, we are holding onto these units. We are ready to help the investors, but everybody has to be reasonable."

He said the firm has gone through the necessary procedures with the Real Estate Regulatory Agency (Rera) in order to repossess the units.

Cayan Development has registered with the Land Department in Dubai two office units in its Cayan Business Centre for auctioning after repossessing them, said Kareem Derbas, CEO of Cayan.

Bando, which is developing the U-Bora Towers in Business Bay, said about seven investors have not fulfilled their contractual obligations.

"We have approached investors who are in default. Unfortunately, cancellation may be the only way forward in some cases," said Ian Powell, business development manager, Bando.