Dubai Properties has become embroiled in a row with investors surrounding a Dh3 billion (US$817 million) development, after demanding final payment before the project was ready to hand over.

The dispute involves the Executive Towers development at Business Bay, a collection of 11 high-rise buildings containing more than 2,200 luxury apartments.

Developers in Ajman will not be allowed to arbitrarily cancel any sales and purchase agreements (SPAs) and will have to seek permission from the Ajman Real Estate Regulatory Agency (Arra), its chief told Emirates Business.

"No developer is authorised to cancel any agreement unless they get approval from us. We are monitoring the situation and are allowing investors time to fulfil their commitments," said Omar Al Barguthi, Director-General, Arra.

Even though auction agencies across the world have revealed a significant rise in the number of distressed sales in auction rooms, none of the properties that have been auctioned so far in Dubai come from distressed sellers.

As a result, none of the sellers, who have auctioned their property in the city, have taken a cut.

Close to 50 per cent of the 380 members of Hydra Investor Group favour taking a collective legal action against Hydra Properties than an independent approach, according to the group.

In an online survey conducted by the group, 45.5 per cent of the members (only 50 per cent responded to the survey) said they have legitimate objections to terms/understanding of any agreement and require legal assistance to uphold their understanding of the agreement and then proceed with purchase in Hydra Villa Abu Dhabi project.