Jumeirah Beach Residence JBR Service Charge Looks Set To Drop

A few months back Dubai’s well known and popular beach side freehold apartment development, Jumeirah Beach Residence, was in the headlines for all the wrong reasons. The development has previously made the news with accusations that the developer had yet to deliver on promised amenities and facilities at the project, so when it was announced that that service charges at the apartment complex were set to be raised, owners were none to happy about it. But this wasn’t exactly your normal service charge increase, as owners previously used to paying AED 9.5 per Square foot were now being told that the price would be raised to AED21.75 per square foot. This alone would be enough to cause dissatisfaction amongst residents, but on top of the previous problems with the developer, owners had had enough, and who can blame them! However the management company behind the service charge increase, Salwan Property Management, has now come out and said prices should soon drop.

Salwan says they are now looking into renegotiating cleaning and utility contracts in an effort to bring the service charges down for residents. Whether this has anything to do with the Dubai Real Estate Regulatory Agencies (RERA) recent announcement that developers should not increase service charges without their permission remains to be seen, however legislation from 2008 should have this problem already covered. Dubai Strata Law 27 states the organizing of services charges should rest with a residents and owners association, but the law has yet to be ratified. In relation to the JBR situation, Salwan have stated all money collected from resident will be collected in an account, and would be available for use by an owners association when the time comes.

Hopefully this move will go some way to appeasing owners at JBR, who can with any luck look forward to further good news once RERA brings in a universal service charges formula to calculate what is a just service charge fee for all developments across Dubai. Despite falling property prices, some developers have taken the opportunity to raise service charges, so the sooner RERA bring an end to such practices, the better for all Dubai properties residents. 

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