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.