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30 May 2023

Service charge hiked by up to 37% at world's tallest Burj Khalifa

By Parag Deulgaonkar

Service charges for residential and corporate units in Burj Khalifa, the world’s tallest tower, have been increased by 27 per cent and 37 per cent, respectively, for 2013.

Owners of residential apartments will have to pay Dh70.02 per square feet compared to Dh55.01 per square feet in 2012. In 2011 and 2010, the charges were Dh55 and Dh52.77 psf, respectively.

Charges for Armani Residences have been set at Dh85.35 psf compared to Dh83.12 psf last year.

Corporate suites has seen the highest increase in the charges and owners will have to shell out 104 psf compared to Dh76.03 per sq ft in 2012. In 2011, the service charge was Dh76.02 psf.

An apartment owner in Burj Khalifa confirmed he had received the invoice for the year, adding the increase was too steep.

“Last year, they had kept the charges stable in 2012 compared to 2011, but this year they have increased it significantly. No reason has been given for the hike and they only said it has been approved by Rera.”

On average, an owner of a full floor (residential) will have to pay just close to Dh950,000 to Dh1 million in 2013 (Dh79,000 to Dh83,000 per month), while corporate suite owners (full floors) will have to shell out Dh1 million  (Dh83,000 per month) in service charges. There are still a number of investors who own complete floors in the tower.

In the invoice sent to the owner, Emaar Properties, the developer, said: “After a thorough review of the current and projected costs, we would like to inform you that the 2013 community service fee for Burj Khalifa has been issued in accordance to rates approved by Rera.

“As always, payment may be made in four equal installments using various payment methods at your disposal. To ensure the continuity of service to your community, we request you to kindly make your payments by the dates mentioned on your invoice.”

The service charge in the tower is split into three components – community service fee, chiller charge and hot and cold-water charge.

For residential units, the community service fee is set at Dh59.30 psf (Dh46.74 psf in 2012), chiller charge is Dh9.69 psf (Dh7.40 psf), while hot and cold water charge is 1.03 psf (87 fils).

Owners of corporate suites have to pay community service fee of Dh93.28 psf (Dh67.74), chiller charge of Dh9.69 psf (Dh7.40) and hot and cold water charge of 1.03 fils psf (89 fils).

Community service fees for Armani Residences stands at Dh45.26 psf (Dh46.29), chiller charges are at Dh9.69 psf (Dh7.40) and hot and cold water charge is at Dh1.03 psf (Dh1.02).

Armani hospitality charge has been set at Dh29.37 psf compared to Dh28.41 psf last yea.

The 2,717-feet high tower has 900 apartments, while the Armani Residences has 144 fully furnished private apartments.