Property developers in Dubai have started to repossess properties from investors who, despite repeated reminders, have been unable to make payments, according to two developers in the Emirate, Bonyan International and Cayan Development.

Anas Atatreh, vice chairman of Bonyan International Investment Group, told Emirates Business newspaper: "We have repossessed some units from investors in our Dubai Gate 2 project in Jumeirah Lake Tower. Currently, we are holding onto these units. We are ready to help the investors, but everybody has to be reasonable."

A landmark ruling towards the end of 2009 allowed Barclays Bank to repossess properties because of mortgage defaults. It is expected to open the door to thousands of similar cases as lenders try to recover losses.

Billions of dollars in home loans were handed out by banks during Dubai’s real estate boom, as investors purchased off-plan properties, however as the bubble burst, it left buyers with mortgages worth more than their properties so they stopped paying.

Dubai’s mortgage law, requires banks to give homeowners 30 days notice before launching foreclosure proceedings, which came into force in 2008.