Hydra Properties defends price hike for Village homes

HYDRA HOMES: An artist's impression of homes at the flagship Hydra Village project.

Abu Dhabi's largest developer, Hydra Properties, has drawn criticism from a group of real estate investors for altering details of plans and raising the price for Hydra Village homes.

The company has informed investors who have bought properties off-plan that improvements to the project will mean a surcharge to the original purchase price.

A group of 50 investors have formed an action group that intends to put their grievances to Hydra Properties next week. They claim prices have been increased by up to 15 percent, despite construction costs falling and house prices easing.

Hydra says it is operating within the law, and stresses that investors have been kept fully informed of project improvements since they signed their contracts.

“All clients purchasing within Hydra Village have been given an opportunity to continue their purchase, and each client has been made aware of the improvements to not only the site but the homes individually also,” a Hydra Properties spokesman told Arabianbusiness.com.

“With the improvements to the final design, an increase in cost has been advised, along with a breakdown of costs to show transparency to our customers.

"The majority of our clients purchasing in Hydra Village have been extremely happy with the final design, and as many of these clients are purchasing as a choice for their family home, an increase of space and facilities or an upgrade of finishes, is welcomed,” the spokesman added.

Clause 12.8 of a contract obtained by Arabian Business states that the ‘landlord shall have the right at any time to make adjustments to the sale price of the property in respect of a rise in the costs such as: inflation, exchange rates of foreign currencies, accrued interest (if any), materials etc...or any other matters affecting the cost of the property’.

Matt O’Hara, a resident in Dubai, who is one of the group of 50 investors, is far from satisfied. “We are taking action and are very frustrated. All in all, price increases at a time of falling house prices and construction costs are unethical," he said.

Lawyers in the region say this kind of dispute is common.

Matthew Hooton, an Abu Dhabi-based real estate lawyer at law firm Ashurst said: “The legal framework in Abu Dhabi, relating to investor protection, is not as regulating as the framework one finds in Dubai. The recent legislative measures implemented in Dubai to restore investor confidence have not, as yet, been followed in Abu Dhabi.

"However it is clear that in both emirates numbers of investors now find themselves in arduous positions due, in part, to entering into contracts, the terms of which strongly favour the developers."

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READERS' COMMENTS

Hydra Heights
Posted by lee randall, Dubai, UAE on Sunday 10 May 2009 at 20:16 UAE time


We have purchased a property that Hydra are no longer going ahead with and are told there are no refunds, but we have the option to move to another development. Are we legally entitled to a refund? Can they force us to move? We have not defaulted on any payments.

Liar Liar
Posted by Aisha, Abu Dhabi, UAE on Thursday 7 May 2009 at 08:29 UAE time


Whoever spoke to AB is a liar. I have no update since last 2 years. Have been calling them but no reply. Had to run twice to cityscape - Duabi, just to meet the team, and again was promised with response, but no reply. Until, last month when I got e-mail stating the increase, and a week latter followed by a Leagal Notice.

Hydra Village Sharjah
Posted by Ahmad Abdo, Abu Dhabi, United Arab Emirates on Wednesday 6 May 2009 at 18:07 UAE time


It is illegal to keep the booking amounts paid to Hydra and not refund them back. hydra FAILED to deliver thier promises to investors and they should refund back all these amounts with interest.

No Response
Posted by Isabella, Redhill, United Kingdom on Sunday 8 March 2009 at 00:52 UAE time

Despite multiple questions to Hydra and requests to meet someone who is prepared to actually answer hard questions, I get no response.

If there were suitable answers, wouldn't it be easier for Hydra to simply reply or put the answers on their web site. Most customers are making the same simple queries.

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