By Neil Halligan
Developer Emaar charging tenants for leasing areas outside restaurants.
Dubai Marina promenade retailers are being hit with an extra fee of AED225 ($61) per square foot by Emaar for leasing its outdoor space.
According to a report in Gulf News, one Jordanian restaurant owner was asked to pay AED675,000 per annum for a 3,000 square foot outdoor space at the front of his establishment.
“The annual rent for my restaurant is only AED250,000 per annum. It is insane to charge me such a huge amount just to use the outdoor space,” the tenant was quoted as saying.
“Moreover, the lease I signed with the landlord clearly includes rent for the outdoor area. It is unfair Emaar is charging me this hefty amount in the last moment. If Emaar wants to reach a settlement they have to be reasonable,” he added.
Another seafood restaurant owner was issued with a AED196,000 charge for outdoor area in front of his restaurant, on top of the AED700,000 he pays for the restaurant.
“I have been renting on the promenade for the last four years. Why is Emaar asking us now to pay this extra amount?” he said, adding that he has no intention of paying the extra charge.
i guess the prices on the menu will go up more than 20 % on every item , so a cup of coffee will cost min 30 AED
Its the Zone B issue that you should investigate that Emaar are refusing to lease. Most restaurants used to seat customers in this area where they wont survive without this vital space. Its a disaster for tenants where even residents are complaining that this move killed the Marina Walk.
Don't pay - alledgedly, there is a cafe in Downtown that has just appropriated the space outside its cafe without paying a fil in rent to serve shisha without a license, to screen football from the Internet (illegally?) and to stay open 2 hours beyond its agreed closing time. Emaar aren't doing a thing about it and apparently the police aren't interested in stopping this either. These guys are running a mocca in the area despite regular complaints from residents. So my advice is do what you want and refuse to pay - Emaar will back down or rather perhaps they simply can't be bothered to enforce their own rules.
They are sending new contracts for next year rent above the dubai rent control law of maximum of 20% they are sending for 30%.
They think they are the government and no one can fight them.
The service companies charge them 20 dhs per sq ft to Emaar and they charge 60. Which is against the law to over charge the tenants above the cost plus 15%.
They say if you don like it leave.
I hope some one with influence can help all these people whom put their life savings with the promise of Emaar to have the terrace part of the restaurant and now they have taken all the terrace and left the tenants with out any terrace and killed their business .
Unbelievable. Yet again an example of the "investor friendly' environment. This coming from allegedly one of the most transparent and safe developers to choose! Understandable why people still say that there is very low investor protection here.
omg how can be that possible, what kind of restaurant will survive with this excesive payment. i guess just increasing the price in the menu more than 30 %. Emaar sucks.
It is simply pure unadulterated greed, that in a truly free market would drive the businesses out of the area, or would result in substantial legal actions against the developer. The fact is, supply/demand and due process do not play a factor in Dubai, but nepotism does. It's time developers and residents wipe the stars from their eyes whenever they marvel at Dubai. As always, what is wonderful gets ruined by this greed, and no one can do anything about it.
Suggest you don't pay as the minute you do the standard legal stance is by paying you are agreeing to the terms and you will never get your money back and you will also end up encouraging the landlord to charge some other fee like an "outdoor service charge" !
wow! since when did Emaar start acting like Nakheel? LOL
It is increasingly becoming difficult to do business in Dubai especially if you are a small to medium sized entity. Most of the big groups are only the ones making money as they have secured prime space in MOE, Dubai Mall, DCC, MCC. This is where they are making the money. Most of the other retailers/restaurants in the other malls are just breaking even or losing money. Eventually business owners are going to think that it is better to deposit the hard earned money in banks for negligible interest rates rather than spending ridiculous amounts to run the business.