The ongoing dispute between residents on the Palm Jumeirah Shoreline and its developer Nakheel over plans to introduce annual membership fees for its beach clubs has been resolved, the head of RERA has told Arabian Business.
Dubai’s real estate watchdog has approved five homeowners associations on the luxury development, allowing them to appoint their own manager for the communal areas, residents said.
“It’s already solved; this is what they have told me. The owners' association itself, they are dealing with Nakheel now,” Marwan bin Ghalita, CEO of RERA, said.
Residents said they expect all homeowners associations to be RERA-approved in the next two weeks.
“We’re hoping that we’ll actually have all 13 registered by the end of the month,” one resident said.
“It’s a totally different ball game now because we are now individual legal entities….We don’t need the authority from Nakheel [to appoint a beach club manager]; we are legally entitled to now appoint our own association manager,” he added.
Nakheel declined to comment when contacted by Arabian Business.
RERA's comments mark the end of a long-running battle between Shoreline residents and state-backed Nakheel. The developer in December distributed leaflets to the Palm Jumeirah residents warning it planned to charge residents up to AED5,000 ($1,360) to access the beach, pools and gyms.
In the interim, the developer banned residents with outstanding service fees from using the beach, pools and gyms by rolling out a temporary security card system.
Nakheel said the lockout would be extended to Shoreline’s main buildings and car parks from Jan 15 - effectively barring residents from accessing their homes - but homeowners said the deadline had passed without incident.
The company has said the lockout is in response to the high number of homeowners defaulting on service charges. Homeowners on Shoreline have AED57m outstanding in service fees, down from AED72m at the start of Dec, Nakheel said on Jan 3.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.