Emaar hikes service fees by up to 46 per cent

Developer raises service fees in three projects.

Emaar Properties has raised service fees for its communities in Arabian Ranches, The Meadows and Hattan by between 18 and 46 per cent in 2010 compared to 2009, while reducing it in The Springs community by 6.5 per cent, Emirates Business has learnt.

Service fees in Arabian Ranches have been increased by 18 per cent to Dh1.78 per square foot of plot area in 2010 compared to Dh1.51 in 2009. During the same period, service charges in Hattan have gone up by 46 per cent to Dh1.81 per square foot from Dh1.24 per square foot.

In a circular, e-mailed to all Meadow owners, Emaar said: "After a thorough review of both, the 2009 costs and projected costs for 2010, community service fee rate for 2010 has been determined at Dh1.43 per square foot of plot area.

"We have experienced a challenging year due to the global financial crisis. Despite uncertainties in the market, we have striven to provide our owners and residents a quality service to ensure that the community retains its position as one of the most sought-after freehold communities in Dubai."

In Springs, the developer has reduced service fees by 6.5 per cent to Dh2.03 per square foot from Dh2.17 in 2009.

Dubai's Real Estate Regulatory Agency has already warned developers not to raise their maintenance fees, making it obligatory for developers to get their yearly budgets cleared from the agency. This newspaper reported earlier that secondary market prices of properties in the Springs have increased in the range of 11 to 33 per cent since the beginning of this year, while prices in the Meadows have surged in the range of 16 to 19 per cent in the same period. (With inputs from Anjana Kumar)

 

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Comments

  • Benoit 17 March 2010 15:12
    How is it possible that RERA accepts such difference in SC's in Dubai? Dubai Properties and Salwan are raoing JBR owners with AED 15/sqf and these communities only pay 10% of that with huge green areas and other amenities that Dubai Properties sold and never delivered? This is crazy. RERA is not doing the job they were supposed to do or I dont understand the situation?
  • Ali 16 March 2010 18:16
    What are these guys complaining about? Compared to other communities, this is dirt cheap. I'd happily pay Dhs 1.7 and 2.03 per square feet. No wonder Emaar is still in business!
  • pikitika 16 March 2010 17:28
    these communities have been built and have been functional for over 5 years. I don't understand why emaar would need to raise the prices given that the first year is traditionally the most expensive with landscaping, glitches, etc. I'm certain this is another one of Emaar's "greed" tricks and/or ways of covering up other incompetence.
  • pikitika 16 March 2010 17:26
    these communities have been built and have been functional for over 5 years. I don't understand why emaar would need to raise the prices given that the first year is traditionally the most expensive with landscaping, glitches, etc. I'm certain this is another one of Emaar's "greed" tricks and/or ways of covering up other incompetence.
  • Manoj 16 March 2010 16:20
    emmar is charging extremly high rate for its flats...and no transperancy in that as well
  • gautam bellur 16 March 2010 11:53
    I'm assuming you mean AED per sqft per year. If so, the rates are ridiculously low compared to Salwan-managed properties like JBR (AED 15+ per sq ft). How can they be this different?
  • krishna 16 March 2010 10:07
    Granted there is an increase but if you look at actual costs payable the 50 to 60 fils/sqft is peanuts for Owners in such a welllived in community.You should look at other less savoury projects which have ridiculously high fees. Your article is lopsided and gives an inaccurate impression.

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