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Dubai property developer increases service charges by 129%
Baltimore News.Net
Friday 12th December, 2008
7,000 apartment owners on Dubai’s Jumeirah Beach have been hit with a massive increase in service charges.
Salwan Property Management, formerly Idama, is a subsidiary of the project developer, Dubai Properties, which is linked to the Dubai government.
The Jumeirah Beach Residence project has been controversial due to its non-completion, shoddy exterior finishes, and failed promises to deliver recreational facilities, beach parks, and gymnasiums.
Dubai Properties sold the development as a luxury complex of forty towers comprising 7,000 residential apartments and hotels. It displayed plans and told buyers they would develop acres of beachfront recreational facilities, clubs and gyms. Two years after the completion of the construction they have failed to materialise. One very large section of beachfront, earmarked for beachfront recreational parks, was converted to a bitumen car park earlier this year for commercial, despite calls of condemnation by irate JBR owners and residents.
Occupiers of apartments have consistently complained of the services of the management company saying windows are cleaned only twice a year.
Nonetheless Salwan wrote to Jumeirah Beach residence owners this week advising the services charges levied against their properties would rise from AED 9.50 dirhams ($2.60) per square foot to AED 21.75 dirhams ($5.95) per square foot. Despite the letters being dated 4th December 2008, the manager advised the charges would be backdated to 28th September 2008.
JBR is now one of the highest charging complexes in Dubai. It is another blow to investors in the project that backed it. Dubai Properties only recently boarded up sections of the beachfront saying it now planned to go ahead with construction of the sports clubs. The company is big on rhetoric, and charges, but has failed to deliver in the past. It fails to communicate with owners which has a number of them now forming associations to lobby for the rights of owners and tenants.
Salwan nontheless has started charging the new service charges. The Dubai Properties company has also ignored a ruling by the developer that no apartments in the complex are to be used for short-term letting. This rule was written into the contracts of owners and is strictly enforced.
Contrary to that, Dubai Properties, through Salwan, has now established on its own behalf, a short-term letting business in JBR’s Shams 1 Tower. “Comprising luxuriously furnished loft, 1, 2, and 3 bedroom apartments, the spacious units will boast fully equipped self-contained facilities, and offer panoramic views,” Salwan announced in a recent press release.
Saeed Bushalat, CEO of Salwan Property Management, said, “We have launched the hotel apartments to meet the escalating demand for premium accommodation from various travel segments in Dubai. Whether it is for long term lease or short term stay, we would like our customers to experience maximum comfort and peace of mind in one of the finest communities in Dubai that will serve as a home away from home.”  Email this story to a friend
Comments on this story
Beware
12-16-08, 08:32 AM |
Greadness
No regulations,no laws are honored here,just a bunch of investors looking to double their wealth in forcing unfair contracts which are rejected in a court of law, but who cares!
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zezo
12-12-08, 08:08 PM |
Dubai property developer increases services charges by 129%
i wish good luck 4 jbr
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Dve
12-12-08, 09:30 PM |
Typical
Typical Dubai, promise champagne then deliver beer..........2 to 3 years late
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ham
12-13-08, 01:24 AM |
law
It is what they are doing , in all matters no law has been declared till now
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Ahamd Z
12-13-08, 10:59 AM |
Du-Bye Bye
Dubai will be a case study of how something so good could have gone so wrong. Stay tuned.
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Ahmad Kamal
12-13-08, 11:27 AM |
History .....
They will be the first nation to distroy themselves by trying to charge exuberant rents, unbelievable service chareges and taxes in the name of Gov fee and Salik.......... Dubai wake up b4 it is 2 late
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Sohail
12-13-08, 02:27 PM |
Amazing
I have purchased real estate in UAE, it was supposed to be contructed and handed over to me in sep. 2009.............The construction has not even BEGUN yet. I live outside U.S so theres only so much I can do. BUt this is simply amazing. No laws, regulations, or morales.
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Anonymous
12-15-08, 12:54 AM |
The new switzerland for elites.
Sohail;118517:
I have purchased real estate in UAE, it was supposed to be contructed and handed over to me in sep. 2009.............The construction has not even BEGUN yet. I live outside U.S so theres only so much I can do. BUt this is simply amazing. No laws, regulations, or morales.
The first wave of property flippers are being cleaned out. They have served their purpose. The provided cover for the crazy initial construction phase of Dubai.
CNN is here. A huge building. As usual, I expect it’s an intel base station for the usual spooks.
Legal firms in the city are currently writing global banking laws for a Free Trade banking zone being established here. These new laws are based on City of London banking codices. I met some lawyers who are writing them. They know what is going down.
A flood of UK banking and legal type wealth managers are moving here from the City of London. Why? We know what is happening with lay offs in the UK, but why Dubai? Take a guess?
The more I see, the more I can see the global elites are going to use Dubai as their Switzerland.
As you know, Switzerland and Liechtenstein are currently under pressure from the EU. CNBC ran a story this week reporting these two former money stashing locals for world elites are being pressured by Brussels to loosen their secrecy laws. They don’t want both the EU and the coming global taxation regimes openly undermined.
The Globalists are clearly signaling to their elite friends to move. Dubai was set up for this purpose. The globalists would not leave themselves without a replacement wealth haven. Dubai loves secrecy. There is no pesky democracy. The Emire is foreign bank-owned and knows on which side his bread is buttered.
As much as all this sounds incredible, this is the riddle which is Dubai. It’s been carved out as a globalist free zone for the elite who will be residents there, but will not necessarily live there. Halliburton are already here.
http://www.iraq-war.ru/article/183983
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JoeyDee
12-14-08, 12:10 AM |
Du-Bye-Bye-GOODBYE :)
I second Ahamd Z’s comment :)
Dubai is a deception - like when you stand on the shore looking at your reflection over the water... looks so nice - so gentle - so clear, and as soon as you touch the water, it blurs out :)
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Jez
12-14-08, 02:42 AM |
Wake up
all the leading ''super'' developers are in major trouble, Nakeel and Damac are bankrupt..
this is having a domino effect in the property sector..so Sohial I am sorry to be the bearer of bad news but your property might never get constructed...
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Anonymous
12-14-08, 04:55 AM |
property mania Dububble
Jez;118573:
all the leading ''super'' developers are in major trouble, Nakeel and Damac are bankrupt..
this is having a domino effect in the property sector..so Sohial I am sorry to be the bearer of bad news but your property might never get constructed...
property mania
Dububble following the US bubble down?
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Do what ever but not buy
12-14-08, 02:47 PM |
Dubious properties
This is the massada syndrom by the most unethical people in the property market in the world. I am sure Dubai property market will never recover from all this as they got the money and they spent it.
Dubai Government is doing too little too late. Everything that shines in Dubai is definetly not gold.
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johnny john john
12-15-08, 11:05 AM |
whatever
I don’t care because I don’t own property there. Hope this has wasted your time suitably
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Dubai Economist
12-17-08, 01:21 PM |
Dubai Genie
I think Dubai’s genie is back in the bottle.
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HASAN A ALHOSANI
03-02-09, 08:37 AM |
GREEDY
My advice to the owners NOT to pay service charges -it is against the law.Call and write to Dubai land .they did not agree to the raise of the service charegs.
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