Jumeirah Beach Residence standoff

source: Xpress GulfNews

Dubai : The Real Estate Regulatory Authority (Rera) has taken the sting out of a 129 per cent increase in service charges for unit owners of Jumeirah Beach Residence – sort of.

In a letter obtained by XPRESS, Rera has given what it calls “preliminary approval” that Salwan Property Management rescind its original annual service fee hike of Dh21.75 per square foot to Dh15.32.

The decision means that instead of an owner of a 1,000 square-foot flat in JBR paying Dh21,750 per year, he/she will now pay Dh15,320 per year.

In its letter, Rera tells Salwan that “we have agreed” to the lesser service charge which is split between Dh8.32 per square foot for maintenance and service charges and Dh7 per square foot for electricity and water consumption.

Not enough

Celia Reinaldo, a member of the JBR Residents’ Association, said unit owners are glad, but noted that some owners believe even the latest compromise doesn’t go far enough.

“It’s good news but it’s still more than it was last year,” said Reinaldo. In its letter, Rera has informed Salwan that it “must take into consideration” management fees, a building reserve fund and an infrastructure amount as part of the service fees cost.

The letter said, “Developers must deposit collected charges into private account and undertake not to spend the money unless [they] get Rera approval.”

The JBR Residents’ Association, meanwhile, has hired a professional company which had determined in a initial study that the Dh15.32 per square foot cost is also not justified.

In a letter to members, the association executive said that “based on this initial study, the maximum cost for JBR in terms of service charges should not exceed Dh12.4 per square foot”.