Homeowners in Dubai have seen service charges for communal areas almost double in 2008. Developers have blamed this on the inflationary pressures being felt in the markets as the cost of raw materials and necessary utilities increase.
Residential service fees are often the ‘hidden’ charge placed on home owners living in community developments. At present these are usually payable to the developer of the project, who charges owners a set sum which is then put toward the upkeep of communal grounds, facilities and building spaces.
From October, this role will be taken over by owners associations, under Dubai’s upcoming Strata Title Law.
Property owners have seen these charges rise sharply since the start of the year, as market pressures and the effects of double-digit inflation have trickled down to the end user.
Owners in Emaar communities have been told of added increases, but many have yet to receive invoices reflecting these.
AME Info has learnt that increases in some of the Emaar communities are likely to potentially double once the charges are seen. In the Arabian Ranches development, the charges differ according to the size of the property.
Al Reem villas will go from approximately Dhs6,000 per year, to Dhs11,000. The Saheel and Savannah communities will see rates rise from around Dhs7,000 to close to Dhs16,000, while property owners in the Alvorada community could see their fees top Dhs20,000 annually.
Similarly, some owners in Union Properties Green Community development have seen their rates go up by over 50%, with charges for a studio going from around Dhs6,000 to approximately Dhs9,000 per year.
‘The charges have been increased in all communities, but it is in line with the increases that have to be paid across the board,’ said an Emaar Customer Care representative.
‘The service providers have raised their prices and there’s been an increase in raw materials. The Dubai Electricity and Water Authority have upped their charges by 50%, so it’s all reflected in the new rates.’
