14 Sep 2009 The National
 

Homeowners take problem to the Ruler of Dubai

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DUBAI - A small group of homeowners in the massive Discovery Gardens development have taken their long-running complaints over service and maintenance fees to the highest level.

Owners of flats in the cluster of low-rise towers near Ibn Battuta Mall have sought help from the office of Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.

Yesterday they presented his office with a petition asking for a reduction in upcoming service and maintenance fees for their community.

The homeowners submitted the same document to Dubai's property market regulator, the Dubai Real Estate Regulatory Agency (Rera)Real Estate Regulatory Agency (Rera)Loading..., late last month.

The petition was signed by about 90 people who own a combined 130 flats in the 26,000-unit community.

They said were spurred into action after receiving information that NakheelNakheelLoading..., Discovery Gardens's master developer, had recently asked ReraReraLoading...'s permission to charge Dh21.85 a square foot in fees, which comes to more than Dh20,000 (US$5,445) for a typical one-bedroom flat.

Property owners have long been at odds with NakheelNakheelLoading... over such charges, as well as with what they say has been a failure by the developer to provide basic maintenance. Many complain they have had little help with broken air conditioners and clogged toilets, forcing some to use bathroom facilities at the nearby mall.

Michael Aldendorff, a property owner at Discovery Gardens, said he and four other homeowners were informed about NakheelNakheelLoading...'s proposed fee structure during a meeting in August at the developer's Jebel Ali office.

They were told the amount had been approved by ReraReraLoading..., he said, though NakheelNakheelLoading... had yet to officially announce it.

Later that month Mr Aldendorff and a group of about four dozen Discovery Gardens homeowners organised a protest and started the petition.

They would like the Ruler's office to be "aware of the problems people are facing when they buy property here," said Mr Aldendorff, who assumed a leadership role in the group. "This is a way to highlight the frustrations of homeowners who are severely disappointed with their properties.

"We're not trying to be radicals or troublemakers here. We're just trying to get what we invested in. We bought into the Dubai dream, and it's in our [interest] and the interest of the authorities that that is realised."

In an e-mail, a NakheelNakheelLoading... spokesperson said the disputed fees were "the current service charges [at Discovery Gardens] and NOT the ones for the next fiscal year".

The developer did not disclose how much it intended to charge for the upcoming year, or whether it had proposed the disputed amount to ReraReraLoading....

NakheelNakheelLoading... also said it was not responsible for determining some of the disputed fees, and said they were calculated "to ensure that owners receive the best service for their fees. Any savings which can be made are then passed on to the owners."

In addition to protesting against fees, the homeowners' petition asked authorities to "implement an immediate freeze on any and all payments related to maintenance, community and cooling charges for the next financial year until a suitable and acceptable rate has been agreed between ReraReraLoading..., NakheelNakheelLoading... and the apartment owners".

It cited as justification similar rates at other communities for maintenance charges, common-area fees and cooling charges, which were significantly lower than Discovery Gardens. Homeowners in the community would pay Dh10.35 a square foot for building maintenance charges alone, the petition said, while owners in the Jumeirah Beach Residence and the Dubai Marina, areas boasting a wider array of community facilities, paid approximately Dh8.30.

Kishor Wagh, 49, an Indian national who signed the petition at the protest, accused NakheelNakheelLoading... of neglecting the community.

"After I rented it out in February, there was a problem of no power in the rooms," said Mr Wagh, who paid Dh1.25m for a one-bedroom flat in July 2008. "And then there was the problem of water leaking out all over the bathroom and kitchen."

When he called NakheelNakheelLoading... for help, he said, the response was "very bad. The maintenance is absolutely zero. When we call, we don't get a real response. It's always them telling us to call someone else to deal with it."

V Hariharam, 35, also from India, said he received similar responses regarding his broken bath tub and unpainted rooms.

"All I get from NakheelNakheelLoading... is that they've forwarded the complaint to the concerned person that was six months ago," said Mr Hariharam, who also attended the petition signing. He purchased his flat for Dh1.2m in May 2008.

There has also been confusion at Dicovery Gardens between the mortgage lender TamweelTamweelLoading..., NakheelNakheelLoading... and third-party companies that bought the buildings from the developer. Many flat owners, years after purchasing property there, say they still lack title deeds, the crucial documents that verify their ownership.

By Hugh Naylor

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Community Comments (5)

 
by David Carson - 15-Sep-09
Why would anyone want to buy property in the Middle East in the first place? Wouldn't you invest in more developed countries or places like Europe, North America, Australasia, and certain cities of Asia?
 
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DG Apartment owners taken for a ride by S KUMAR - 15-Sep-09
The high fees for maintenance + AC charges in DG development (at over AED 25000 for 1 BR apartments ) cannot be justified given the rates prevailing in comparable community developments in Dubai. While owners have been forced to pay these under duress in the first year as a precondition for handover, it is upto the Developer to send the Audited accounts for "DG Comminity maintenence" to all apartments owners justifying the charges. In the event they cannot be transparent, association of apartment owners should be allowed to appoint independent parties for this purpose. Given that Villa developments like Emaar Meadows and Springs have far reasonable maintenence fees in the range of AED 7000-9000 per annum, what is the rationale of such high maintenence fee for small apartments? It is time Nakheel becomes transparent and answerable to their clients.
 
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Re: Developers by ZZ - 15-Sep-09
I agree with Hisham, all developers in Dubai need to follow the example of Emaar who has reduced its service charges considerably last year and undoubtedly they are maintaining their communities better than Discovery Gardens any given day.

Any services fees or cooling charges higher than that of Emaar to be charged by any other developer in Dubai let alone Nakheel is totally absurd.

I sincerely request the authorities that for the sake of Dubai's Goodwill some sense should be put in Nakheel.
 
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DUBAI DREAM; SECOND THOUGHT!!! by DC OBIMMA - 15-Sep-09
I write from Johannesburg,South Africa. People like us are beginning to understand that the Dubai dream is a deceit. People should think twice before they buy property in Dubai. Many of us paid millions of dollars since four years ago, up till now, nothing has been done and RERA is not doing anything. It is FRAUD in the eyes of the international community!!!
 
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Developers by Hisham E - 14-Sep-09
Its unjust and I believe a dream is still what the management of master developers have kept themselves in. It must be highlighted though that EMAAR is the only master developer which has re-adapted itself to the a changing business environment by:

1. Reducing property prices
2. Renegotiating contracts with property owenrs

All others still abuse the property market. They are adding gas to the fire caused by the credit crunch.

Immediate studied action is required.
 
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Why would anyone want to buy property in the Middle East in the first place? ...  
 
by David Carson
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