Nakheel lowers service charges by 30%

Nakheel, a wholly-owned Dubai government entity, said it had reduced service charges across its various developments by over 30 per cent compared to 2010.

Company Chairman Ali Rashid Lootah said, “It is due to value engineering, negotiation and renegotiation of service provider contracts that we managed to reduce service charges across all our developments. We want to have the lowest service charges in Dubai.”

The company also expects to deliver 7,714 units across various projects by end of 2012 with plans to start construction on new villas on Palm Jumeirah by year-end.

“We are planning to build more villas on Palm Jumeirah. They are still in design stage and the numbers are being finalised,” company Chairman Ali Rashid Lootah said.

“There is high demand for Nakheel projects. We have delivered what we have promised,” he added.

A statement issued at a press conference states Nakheel is currently working on projects in International City and plans to deliver 1,663 units by March 2012.

In Jumeirah Islands, it will deliver 31 units by April 2012, Waterfront: Badrah and Veneto (594 units and 177 units by June 2012), Jumeirah Heights (246 units by August 2012), Jumeirah Park (1,795 units by November 2012), Jumeirah Village (2,188 units by December 2012) and Al Furjan (1,154 units by December 2012).

As regarding the service charges, in May, a company spokesman had told Emirates 24|7 that master community service charges and building service charges had been reduced across all Nakheel master communities and Nakheel was contemplating taking legal action against property owners who are not paying service charges.

A company spokesperson had told this website in June that it will not be able to pay utility and service providers if there are no funds in building accounts of Discovery Gardens, resulting in service disruption.

Palm Mall planned

Nakheel, which earlier announced expansion of Dragon Mart and building to retail centres in Discovery Gardens and Jumeirah Park, is likely to start construction of Palm Mall, Palm Jumeirah, by year-end.

In June, this website reported that Nakheel had not given up the idea of building the Palm Mall and the project has not been cancelled.

In 2008, Nakheel’s Retail Shopping Malls division said it plans to commence development of 13 million square feet of new retail space across five separate mega projects.

More units leased

Lootah stressed that the company had managed to lease up to 70 per cent out of the 20,000 units from its leasing portfolio.

“We have a 70 per cent occupancy now compared to 40 per cent a year ago. This is a sign of recovery,” he added.

Rents have fallen substantially over the last couple of years in Dubai as more supply enters market. Nakheel has recently launched promotions such as rent free periods for those leasing units in Discovery Gardens, Gardens and International City.

Nakheel completes Dh59
billion debt restructuring

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