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Thu 29 Dec 2011 03:54 PM

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Nakheel names homeowners who haven't paid service fees

Lists at entrance of Shoreline buildings on Palm Jumeirah contain owners of about 90% of homes

Nakheel names homeowners who haven't paid service fees
Nakheel banner
Nakheel names homeowners who haven't paid service fees
While it may be the smallest of the three Palm islands planned for Dubais coastline, it remains the only one developed so retains the title it snatched in 2007 when the final breakwater stone was laid.


Development: The Palm Jumeirah

Location: Dubai

Work started: August 2001

Completed: October 2003 (land reclaimation)

Developer: Nakheel

Main contractor: Van Oord (land reclamation)

Designer: Nakheel

Cost: $12b

Size: 560 hectares

Nearest rivals: Palm Jebel Ali and Palm Deira, both still under construction. (Nakheel)
Nakheel names homeowners who haven't paid service fees
The luxury Shoreline apartments on Dubais Palm Jumeirah

Nakheel, the Dubai-based property developer embroiled in a dispute with residents over the use of facilities on its palm-shaped island, posted the names of homeowners who owe the company service fees in an attempt to force them to pay.

Lists posted on Thursday at the entrance of each apartment building at the Shoreline complex on Palm Jumeirah contained the owners of about 90 percent of the homes, along with the amount of money owed to Nakheel.

A spokeswoman for Nakheel, Dubai’s largest developer by assets, declined to comment.

Earlier this month, Nakheel told Shoreline’s residents that they were banned from using the complex’s private beach, swimming pools and gyms unless they pay an additional AED5,000 ($1,360) per household.

Real Estate Regulatory Agency, Dubai’s property regulator, said Dec 27 that Nakheel cannot deny anyone who has paid services fees approved by the regulator from using the facilities.

Dubai developers are looking at new ways of generating income after the global credit crisis forced them to shelve projects across the emirate. Nakheel has incurred AED78.6bn in losses since the crisis began in 2008.

Many owners of homes on the man-made island haven’t yet paid their service charges and Nakheel required temporary security cards to prevent those who haven’t paid from accessing the facilities, Marwan bin Ghalita, RERA’s chief executive officer, said in a Dec. 27 interview. Residents will continue to have access to gyms, pools and a private beach provided they have paid their service fees, he said.

Nakheel charges residents service charges based on the size of their apartments, according to Rakesh Sharma, a property consultant at RBA Real Estate, which manages properties at Shoreline. The fees amount to about 25 dirhams per square foot.

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Anonymous 8 years ago

If I was an owner I would take pride in having my name on this list and even more pride if I owed more money than anyone else! That means I have held on to my money whereas others have paid for services which were never performed by Nakheel.

What does Nakheel hope to achieve with this move which sounds like it was thought up by a 12 year old child. Do you believe owners will be embarrassed? I would write a note to Nakheel asking "Do you want to borrow my mobile to ring someone who actually cares because I DON'T!!"

Daud Al Zainey 8 years ago

I thought that publishing private information was a crime in Dubai?
Many owners have legitimate disputes about their service charges.
Do they name the relevant people at Nakheel for every property past its completion date or other contractual obligation alleged to be broken?

Red Snappa 8 years ago

There has been a constant stream of invective from homeowners at the Shoreline Apartments concerning the quality of and service levels associated with maintenance of what are billed as luxury apartments.

I well remember when a colleague of mine first moved in to find that the air conditioning was ice bound, a problem that persisted for weeks on end, with numerous visits from HVAC engineers who scratched their heads but were unable to remedy the issue, as my colleague and her husband broiled gently indoors.

It was simply farcical in a situation where having paid millions for the privilege of living a luxury lifestyle to find a key fault go unremedied.

Given that 90 per cent of the owners have failed to pay service charges, it is either that they are completely disenchanted with the service received or they are suffering financially from what is a high upkeep at 25 AED per unit of floorspace.

Dreadful publicity winging its way round the world from Australia to Canada and Europe.

Shehryar Iqbal 8 years ago

I completely agree that this not a very good in terms of keeping with the global image of Dubai real estate market and it's reputation. We have a small shop in international city and just recently we were billed 500 dirhams as community charges after being billed separately for community fees. I have decided not to pay either one of them, as the gutter boils outside frequently, there is no cleaning service in the common areas and there is a constant stink in the area. This is. Very short sighted way of Nakheel doing business with it's existing customer as it will become a challenge for them to make new ones if they keep on doing this with the existing ones.I would like to request intervention from the top authority in Dubai to please look into this as this is not good for a over all image.

Syam 8 years ago

As per the strata law, owners can decide on another service provider who can provide the service (but I am not sure how practical it will be in the case of Palm).

Another victim of Nakheel customer service 8 years ago

Nakheel are very poor at maintenance of the buildings and think that calling Dubai Police to arrest tenants trying to use the common areas (that they have contracted with landlords for and have themselves done nothing wrong) is the right way to do customer service.

This high profile dispute has devastated the saleability of Palm Shoreline Apartments + possibly the publicity may have put off thousands from investing in Dubai property.

Even if Nakheel eventually back down for tenants, who wants an apartment where you have to pay Dh200 if you want to bring an outside friend to have a drink at your beach bar, or Dh200 for a babysitter to take kids to playground.

I wish top leadership of Dubai would read this and do something to take the heat out of the confrontation for good of tenants + Dubai's international reputation, which is being really damaged by such actions.

Disgusted 8 years ago

I own an apartment in the Shorelines and have paid my fees in full. I stopped by today to look at the list and saw my apartment listed with another owner's name, and some bizarre outstanding amount next to it. I don't know whether Nakheel employees are just inept, or lazy, but surely if they are trying to shame people, they should at least get the information right.

This is typical of Nakheel, and is a prime example of why they are in such a miserable financial state to begin with.

Rob 8 years ago

I am a tenant at the Shoreline Apartments and also decided to check the list posted by Nakheel.
Surprise, surprise....... Not only did I find that most apartments were listed TWICE for the same building but also that in some cases the same number apartments had DIFFERENT owners who were allegedly in arrears with payments!
And, just as the case of "Disgusted" above, I also found the apartment to be registered to the incorrect owner who allegedly owed several thousands in overdue fees!
Nakheel, you have dipped to the lowest of lows already and would suggest you get your facts right before attempting a "name and shame" campaign where the only shame at present appears to be yours!

opsecusa 8 years ago

Not good for the homeowners, not good for Dubai. Shame.

John 8 years ago

How is it that Emaar, which is not without its failings, manages to maintain a good image among investors, both local and international, yet it seems every story about Nakheel drags it deeper into the mire. Leadership is required, because Nakheel is becoming synonymous with Dubai's failing real estate sector.