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Wed 15 Feb 2012 04:27 PM

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Nakheel's Palm Shoreline row 'sorted', says Rera boss

Marwan bin Ghalita says approval not needed from Nakheel

Nakheel's Palm Shoreline row 'sorted', says Rera boss
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Nakheel's Palm Shoreline row 'sorted', says Rera boss
Shoreline apartments, Palm Jumeirah
Nakheel's Palm Shoreline row 'sorted', says Rera boss
Shoreline apartments, Palm Jumeirah

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.

Dr Al Wrong 7 years ago

I doubt this is sorted yet. Nakheel will try to take owners hostage in another way . They already declared they will stop subsidizing AC bills, read they will take from another side what they lost from this side. The lesson from this for all other projects. Go to the media, blow the whole thing out, expose, name and shame developers if you want RERA to take you seriously.

Mark of Zoro 7 years ago

Fully agree - you need Name & Shame for these type of Developers

Mohammad 7 years ago

Can we have something for International City as well??

Dr Payne Indyhas 7 years ago

RERA may act if it is a high profile project, the owners are really upset, organized and can have international media involved. But their actions will be limited to some window dressing acts. The Shoreline example is a test. Nakheel CEO declared that he will not accept to sign any contract on behalf of newly recognized HOA (by RERA). The situation is then the same or maybe worse? Nakheel will try to flex their muscles in front of the HOA's by undermining any improvement to be introduced. Shoreline HOA will need to keep the media informed. Actually the media should chase this case as there are a lot of good articles to write.

Faisal 7 years ago

Lesson learnt for me is that basically don’t buy property in UAE, buy it in your home country. I am from UK and I rather spend the same money buying a property in London than in Dubai, because I know as a free hold property owner, I don’t have to pay any hidden surcharges to developer. I

Matt 7 years ago

Provided this ruling is not overturned or circumvented by Nakheel, this ruling would appear to be very positive for the Shoreline Apartment residents. We have been on the receiving end of some really unpleasant policies from Nakheel in the recent past, combined with their management arrogance, and very inefficient way of implementing all their new bureacracy.

I do fear that Nakheel management will find a way to get back at its residents some other way, maybe by massive increases in things they still control like Palm District Cooling.

Red Snappa 7 years ago

I thought that the point at issue upon which RERA was supposed to be ruling, was whether or not beach clubs provided for developments on the Palm Jumeirah were classed as a component of the common areas at the developments or not?

Nothing else appears to have been said on this the crux of the matter. Does this statement from Marwan bin Ghalita, CEO of RERA, imply that beachclubs are definitely part of the common areas, therefore Nakheel has no right to charge for them or merely that the fight over this extremely crucial point of law has been driven down to the Homeowners Associations to slug that contentious point out? It has most certainly has not gone away.

Shoreline Owner who paid all the service charges 7 years ago

So what will happen to the owners who paid no service charges to Nakheel in the last few years? will Nakheel recover these fees?

I still believe that residents/owners friends and relatives ,and visitors should be charged for using the facilities.
I bet the people who are going to abuse the owner associations are the ones who are shortletting their apartments and cash in without care in the world for others or the palm. ,and want their short let tenants to use our facilities for free and we pay for it!! SO unfair.
Please Charge those people who are not resident at the Shoreline.

Sarah 7 years ago

Good news and thanks for all that persisted to fight this . But when can we now walk on our own home ground? . Its not for tenants who pay on time and have lived on the Palm a long time to suddenly be Nakheel's debt collectors.
Whilst we feel for the large debt , the services have been in decline for many years now and the common areas are now very dirty. It does seem a very short-sighted approach , as the reality if they persisted would be that many would move off - as it is the restaurants / gym training have all lost out . One cannot help but wonder whether the expense of implementation v gain was really worth it . Why did Nakheel simply not focus money on chasing these debts first before upsetting the community that its mission statements claim to build ... Very community spirited !

Keith Miller 7 years ago

As an Owner on the shoreline I think the most important issues are; all non residents/owners pay to be on a private beach and how many allowed is controlled to a degree that does not effect the luxury facilities to the residents/owners. HOA must come up with the correct amount of fees to pay yearly taking everything into account including sinking fund for the long term future of the shoreline. We need someone like David Smith from Nakheel to front our team and make the shoreline a place where owners and residents share a luxury location with 1st class facilities and that wont happen as long as residents/owners can invite 4/5 friends onto the beach, this must stop, it is a private beach and although maybe some free passes for immediate families visiting loved ones annually could be allowed it would have to be closely monitored. A combination of owners fees plus a private membership for invited memebers controlled so numbers provide imcome allowing it to remain a luxury facility.