Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Print
Email
Discuss this article (6 Comments)Hydra offers to pay mortgage interest on delayed homes
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 04 October 2009
Developer Hydra Properties said on Sunday it would pay mortgage interest for its customers on projects that were delayed by more than six months.
It said the move was aimed at the "timely completion of Hydra Village", its flagship $545m development, due for completion in 2011.
The property company said it would pay the interest on behalf of customers to lender Reem Finance, with whom Hydra also announced on Sunday it was teaming up with to extend Sharia compliant mortgage provision on Hydra Village.
Bin Sulayem, CEO of Hydra Properties, said: “Mortgage finance is becoming more and more common in the UAE, where the majority of properties are still bought for cash. We know it is one way people can leverage their economic purchasing power and buying a property in Abu Dhabi with a mortgage is now often less expensive than renting.”
The move by the Abu Dhabi-based developer is the latest olive branch to disgruntled investors.
Hydra Village investors are locked into a long-running dispute with the developer over imposed price hikes on properties, construction delays and masterplan changes.
In June Hydra said it would scrap late payment charges on its developments and said investors who have made down payments on units worth half the value of the property would not have to pay further installments until early 2010.
Homebuyers have formed a 300 strong action group called the Hydra Properties Investor Group Committee.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Patrick & Monty "Nakheel/ADCB"
Posted by Ralph, dubai, UAE on Monday 5 October 2009 at 11:15 UAE time
Patrick, I am an investor in Jumeirah Park and have recently asked Nakheel to have some of the interest I paid to the bank (ADCB at 8%, what a joke) returned due to their delay (12 months already confirmed I guess at least another 6-9 months more), costing me about 200.000 AED in extra mortgage payments....Reply was
" As per you request on a compensation, Nakheel has not declared any compensation due to a revision in the completion date or any other form of compensation at this juncture. Anticipated completion dates are subject to revision due to unforeseen circumstances beyond Nakheel control." Hence, the customer pays the bill as always in Dubai
Monty,
I wish you all the best for the court case, please keep us informed.
Posted by Ralph, dubai, UAE on Monday 5 October 2009 at 11:15 UAE time
Patrick, I am an investor in Jumeirah Park and have recently asked Nakheel to have some of the interest I paid to the bank (ADCB at 8%, what a joke) returned due to their delay (12 months already confirmed I guess at least another 6-9 months more), costing me about 200.000 AED in extra mortgage payments....Reply was
" As per you request on a compensation, Nakheel has not declared any compensation due to a revision in the completion date or any other form of compensation at this juncture. Anticipated completion dates are subject to revision due to unforeseen circumstances beyond Nakheel control." Hence, the customer pays the bill as always in Dubai
Monty,
I wish you all the best for the court case, please keep us informed.
Borrowers beware!
Posted by eKim selra, Dubai, UAE on Monday 5 October 2009 at 09:23 UAE time
Thank god the finance is thro ADCB and not NBD. I have my loan with NBD who have misrepresented interest rates to me and in doing so have over charged me by Dhs 21000 over a period of 6 months. Moreover they have made some mistakes in my account and whilst they have reversed the entries, they refuse to backdate, again in doing so earn extra interest.
Posted by eKim selra, Dubai, UAE on Monday 5 October 2009 at 09:23 UAE time
Thank god the finance is thro ADCB and not NBD. I have my loan with NBD who have misrepresented interest rates to me and in doing so have over charged me by Dhs 21000 over a period of 6 months. Moreover they have made some mistakes in my account and whilst they have reversed the entries, they refuse to backdate, again in doing so earn extra interest.
Nakheel
Posted by Patrick on Monday 5 October 2009 at 06:53 UAE time
What about Nakheel? Already late by 10 months in delivering Jumeirah Village villas!!! Every month Customer Services will inform you of a handover which will then change when you reach that date and prompt them for a confirmation!!! Lame excuse from Custoemr Service: they follow management instruction! Will these villas be ever delivered? Such a disregard to the buyers!
Posted by Patrick on Monday 5 October 2009 at 06:53 UAE time
What about Nakheel? Already late by 10 months in delivering Jumeirah Village villas!!! Every month Customer Services will inform you of a handover which will then change when you reach that date and prompt them for a confirmation!!! Lame excuse from Custoemr Service: they follow management instruction! Will these villas be ever delivered? Such a disregard to the buyers!
Rubbish
Posted by Monty Smith, Dubai, UAE on Sunday 4 October 2009 at 22:23 UAE time
I am with ADCB and am paying through the nose for the rubbish they call Hydra Village! now this stunt! more lies and utter rubbish!!!! Will they pay my interest! no! however after I have been to the courts in AD the we will see! and thats just about to happen!
Posted by Monty Smith, Dubai, UAE on Sunday 4 October 2009 at 22:23 UAE time
I am with ADCB and am paying through the nose for the rubbish they call Hydra Village! now this stunt! more lies and utter rubbish!!!! Will they pay my interest! no! however after I have been to the courts in AD the we will see! and thats just about to happen!
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST REAL ESTATE
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST REAL ESTATE
LATEST MIDDLE EAST BUSINESS NEWS
SHARE PRICE CHECK
RELATED STORIES
Market Turmoil Focus
3 stories- EXCLUSIVE: Boeing chairman sees more job cuts in 2010
19 Nov '09 | News - More UAE bank mergers predicted in 2010 - Ethos
19 Nov '09 | News - Dubai property market 'may take 10 years to rebound'
18 Nov '09 | News
Hydra Properties
| 59 stories- Hydra says flagship project on course for Q4 2011 completion
15 Nov '09 | News - Contractor announced for Hydra Towers project
8 Oct '09 | News
Mobile
