Service fees at some of Dubai’s most wanted locations declined as much as 11 to 12 per cent during a year. Read more on how that is possible, what service charge do include and which Dubai areas saw the biggest decline in service fees.
According to the Dubai Land Department (DLD), Dubai’s was prestigious and popular area of Dubai Marina saw a whopping 12 per cent decline in service fees year-on-year, while Jumeirah Beach Residences recorded an 11 per cent downfall.
Dubai Marina average service charge as per square foot is now AED5.96 while in
Even at a less posh locations of Dubai, such as Discovery Gardens, there still was a 5 per cent decline in service fees recorded, from AED3.39 last year to AED 3.21 psf this year. And the world’s tallest and most iconic Burj Khalifa Tower fees dropped by 5 per cent on a year basis to AED6.23 psf.
“RERA [the Real Estate Regulatory Agency] requires management companies to present all their financial statements to the owners’ associations for pre-approval,” said Marwan Bin Galita, CEO of RERA. “Companies are also required to submit their budgets for audit by a financial audit company registered with RERA, and then submit it to RERA for an audit review so that it may be applied should the budget check out.”
According to overall RERA data, service charges in 11 freehold Dubai areas saw declines of between 1 and 12 per cent. The best performing area in this case was Remraam community in Dubailand, which managed to keep service fees at almost the same level as last year, with just 1 per cent dip to AED5.75 psf in average.
In Dubai home owners have the right to apply for all necessary clarifications on service fees by filing queries with the project management company and the owners’ association. If neither cooperate or fail to provide adequate responses, owners may file a complaint with RERA, which in turn can fine the non-compliant company.
Note: Service charge basically is a fee or expense incurred in running a building, especially the cost or expense that benefits more than one party in a multi-occupied building. A service charge may include expenditure on repair, maintenance, cleaning, garbage collection, lighting, air-conditioning, security, staff costs, property management expenses or fees, contributions to a sinking fund for replacement of machinery and upkeep of the common areas.
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