Service charges remain high in Dubai


Service charges and fees charged by developers in Dubai continues to be unsustainable high. Maintenance fees at several locations, including Downtown Dubai is rather significant, adding to the woes of property owners and investors who have seen their property valuations plummet in recent years.

Service charges for the current year in Palm Jumeirah have been established at Dh18-25 per sq ft for residential units. The charge works out to more than Dh14-16 per sq ft in the Arabian Ranches. A property in Jumeirah Beach Residence comes with a service tag of Dh15 per sq ft, excluding chiller charges.

The spike has been observed across various types of properties in Dubai. A survey conducted by Dubai-based real estate broker Harbor Real Estate last year underlined an average annual service charge for buildings across Dubai at Dh16 per sq ft. Currently such charges stand at Dh19 per sq ft, even in locations such as Discovery gardens and The Greens.

While rentals have slumped, the maintenance fee charged by developers has remained the same. Industry experts blame the monopoly of developers on service provision and investor speculation for the high service charges.


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