By Elsa Baxter
New rate means reduction of AED5 per sq ft, backdated to January 1, 2009.
Dubai-based master developer Nakheel announced on Sunday it is lowering the service charge for Discovery Gardens following a review of scope and suppliers.
The new rate, which has been formally agreed with Dubai's Real Estate Regulatory Agency (RERA), means a reduction of about AED5 per square foot.
The new rate will also be backdated to January 1, 2009, with any rebates being credited against next year’s service charge which begin on October 1, the company said in a statement on Monday.
Abdulrahman Kalantar, managing director of Nakheel Asset Management and Design (NAMAD), said: “When we first set the service charges for Discovery Gardens, they were based on our best estimates for this new Nakheel community.
“Following a lengthy review, we have been able to take advantage of recent reductions in the cost of goods and services, which has in turn reduced our overall service charge budgets.”
Service charges are set according to projected costs and all accounts are independently audited, Nakheel said.
And more to the point what was the audit methodology? Scrutiny to a high degree will give your customers confidence that service charges are at a reasonable margin. Service companies around the world earn profits ~7-9% as reported publicly (incl audit method). Transparency does not mean "our accounts are audited by pwc, everything is fine". That said, good on Nahkeel for at least heading in the right direction.
So what's the rate now???? was it 30 now 25, or 7 now 2 !!??
This is a positive development but we have to wait and see what it really means. The annual service charge has many components and amounts to almost AED 28/sqft. Is the AED 5/sqft reduction charge applicable on this total rate or a component? At this point, given the terrible maintenance service, this reduction is not enough! It is still more expensive than Dubai Marina or JBR!
i think from 15 to 10AED
Unfortunately, there is practically no service or maintenance. The promised swimming pools are standing dry since 9 months. Each building was supposed to have a concierge = not existing. No owners associations created, no verifiable accounts. What is this maintenance charge for?
The charges being paid at the first year in the discovery gardens are extremely high itâ€™s more than what the luxury villa owners paid to EMAAR at the neighbouring developments? More over itâ€™s well known that at the first year after the property completion is under the defect liability period (dlp) and the contactors shall repair any defect or problems for free.
I am a career real estate professional, I've been in the Dubai RE market for over five years, and I personally know some of the Nakheel Asset Management Team. I can certifiably say that this is a hoax. I personally conducted a study into the true service charge cost of a standard apartment building in 2005, and it amounted to AED5.5 per sq.ft. This included everything from security salaries to insurance and maintenance. While the world became more expensive since, it did not become so expensive as to justify a service charge of AED 25 per sq.ft at the Discovery Gardens. Let's face it, Discovery Gardens is no 'des res' (desireable residence). It isn't the nicest of all the possible ghettoes (did I say ghetto?) in the world. What's more, It's not as if Nakheel actually provide much services to the properties. Common areas are damaged and remain unfixed, lighting is often problematic, and the development is built underneath electricity pylons so that glow-in-the-dark children are going to be the 'must have' accessory of all residents. The reason why Nakheel is charging so much is simple. It's not that it costs them so much. It's that they sold the properties at original prices of AED 300 per sq.ft, and watched as the market then speculatively drove them as high as AED 1000 per sq.ft, losing out on the profit therein, while at the same time incurring massive losses on their failures elsewhere, like their famous undercosting of the Palm Jumeirah project, or the infamous disaster that is Palm Deira. Hiking up service charges to unjustifiable levels, and then using their unquestioned authority to force residents to pay these arbitrary amounts, is daylight robbery and is a clear attempt to recover the actual losses and opportunity losses that they have incurred. Pay at your own will.
they told us the swiming pool gonna be ready in 2-3 month, its been 9month and nothing even we were playing in tennis court near B68, but they have closed it since 3month becuz some light problem, they said we cant fix it, NAKHEEL cant fix a light problem.
i think nakheel they confused between jbr next to the SEA and discovery garden in the DESSERT, so PLEASE NAKHEEL CAN YOU NOTE DOWN THAT JBR SERVICE CHARGE IS DHS. 15 AND NOW YOU ASKING THE PEOPLE IN THE DESSERT TO PAY YOU 25....PLEASE WAKE UPPPPPPP HELLOOO !!!!!!!!!! ANY BODY HOME
The Charges are unexpectedly high compared to others, also after paying such huge charges there is no satisfaction from the NAM. I have complained once for some A/C leak and it took more than a week to the maintanence team to come and fix it and such time i was leaving in hot condition without the A/C. This is what you pay for such huge maintanence charge to leave in this hot summer days. Where is the maintanence charges fullfilment? Disgusting.