Monday, April 27, 2009

Hydra Properties offers easy payment options to buyers

Leading Dubai-based property developer, Hydra Properties, has issued fresh contracts to its buyers offering easy payment options. The initiative follows complaints lodged by buyers about delays in construction and the unfair price hikes on their purchases. The firm also plans to double its customer services staff strength.

Last month, a group of 50 investors, who joined together to form an action group, put forward their grievance to the company, claiming that prices have risen by 15 percent, despite the drop in construction costs and softening of housing prices.

Hydra argued that it was operating within the law and emphasized on the fact that the investors had been kept aware about the progress of the project ever-since the signing of contracts.

The Clause 12.8 of the contract states that the Landlord has the ability to make adjustments to the sale price of the property with respect to the rise in costs such as exchange rates of foreign currencies, inflation, accrued interest (if any), materials etc., or any other matters affecting the cost of the property.

It has now been learnt that Hydra is preparing contracts which would require purchasers at Hydra Village to pay 2.5 percent every two months till the completion of project in 2011, as against the earlier plan which requires them to pay 10 percent every three months until completion during the course of this year.

Hydra is also modifying a penalty clause which levies Dh.500 per day for late payers. This is now Dh.100 for 15 days and Dh.500 per day after that. Hydra will also pay buyers Dh.1000 a month, if it is more than six months overdue in delivering a project.

The Sales and Services Manager at Hydra, Ahmed Khalil, said "We are revising our contract to create a fair balance of the rights of Hydra and the investor."

The company is also planning monthly construction progress reports and a quarterly publication that would focus about the happening within the company.

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