Service Charges For Dubai Real Estate & Property

One topic which seems to have made the headlines countless times in previous months is that of Dubai real estate service charges mainly for residents in Emaar, Nakheel and Dubai properties developments. If having to pay Dubai’s high rents was not enough, residents are also forced to pay out yet more money towards seeing their properties communal areas and facilities maintained. The concept of service charges is hardly anything new is it? However in Dubai this area has still managed to become a huge attention grabbing talking point, with many residents seeing red over the issue. But why has something which is common practice in living complexes all around the globe become an area of friction within Dubai? Most residents live in a very high standard of Dubai properties here, most of which feature some greenery, communal areas and facilities. All of these need to be maintained and cleaned regularly so as not to fall into disrepair, and the responsibly of ensuring this takes place is most often appointed to specialist management companies, who of course need paying! So where is the problem arising?

Well when developers hike up prices, would be the best answer. The example that has got most of the attention has been Jumeirah Beach Residence, which saw the property management firm increase service charge prices by some 129%! The management company said the price change was necessary to cover costs, but after much negative publicity, said it would review the cost rises and look into improving efficiency. The problem has now seen RERA get involved, and they have now introduced legislation which will move responsibility of service charges and maintenance to Owners Associations. The owners associations will be people nominated from among the residents, and they will be handed the power to arrange all such costs and service contracts for their development. This should therefore go some way to appeasing Dubai residents, who have made numerous complaints to RERA about the service charges issues. However how this works out in reality will have to remain to be seen. Those who take on the responsibility will be expected to give up their already small free time to handle the issues, and if they can reduce service charges to a more satisfactory level is another question that still needs to be answered.
 

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: