Dubai Home Owners take the fight to the Master Developer Camp

The uber luxurious master community in Dubai, otherwise known as the Jumeirah Beach Residence or JBR has been in the news for almost a year now. Touted as being amongst the finest freehold locales in Dubai, this 1.7 kilometre beachfront community has a healthy mix of residential as well as leisure options. Here, one will find some of the foremost names in the hospitality business pitching up tents, together with other renowned restaurants and retail brands from around the world.

But the owners and tenants in this 36 tower residential community have been battling the developer for some time now. If one may recollect, the master developer had been talking tough since end of the previous year. A lot of tactics were tried out and included sending out demand notices to barring access to community facilities and the beach front areas.

Matters reached a flashpoint towards the start of this year and the Real Estate Regulatory Agency (RERA) had to be called in to work out a truce. But the master developer has once again chosen to put the ‘name and shame’ tactic into practice. It has put out a list of flat numbers and the corresponding arrears in the common areas of the community.

Many owners are not really against the payment of outstanding dues. But they have been voicing concerns over the continued lack of commitment towards the resolution of common grievances. With the formation of the Home Owners Association (HOA) and the quantum of service charges being levied being the prime areas of contention, the controversy simply refuses to blow over.

Property owners who had parked their hard earned savings to own what is even today, a prime piece of the Dubai realty market have been waiting endlessly for the master developer of their community to register the Home Owners Association (HOA). Such a move would permit the elected HOA to exercise their vote on the community budget, review the audited accounts statements for the past five years, liaison with the facility management and take a call on various other outstanding issues facing the community.

Taking the battle to the Dubai Properties Group (DPG) who is the master developer for this fine community, home owners are also questioning the rates being charged for community upkeep and maintenance. Many are of the opinion that the rates are needlessly high and quality work can be done at significantly lower rates, thereby bringing down the total outstanding arrears in return.

Needless to say, this fight between Dubai property owners and master developers is far from over. It remains to be seen, what the outcome shall be.

Rental Hikes threaten Villa Life at The Springs, Dubai

The Dubai residential realty landscape can be broadly divided into two main types of dwellings: apartments and villas. Given the lower outgo of funds for tastefully appointed apartments, these had been in high demand during the tough economic climate that prevailed in the region. On the other hand, a section of the residents preferred to take the luxurious route out.

Families had traditionally flocked to areas along the Emirates road such as Mirdiff, Bur Dubai and other locales situated on the periphery. However, come recession time and a few amongst them began to take advantage of the falling rates to gift themselves an upgrade. Suddenly, the upmarket Springs community began to look very attractive in a sliding rental rate market. As a result, many a family moved into this popular community that is famed for its quality living standards.

Two years down the line, the economic scenario has changed and the balance of power has tilted in favour of the landlords. Given the new rental rules that permit dwelling owners to increase rents by pre-determined levels, a lot many owners are choosing to exercise their rights. As a result, many tenants are now reporting rental hikes in the range of DH20000 and more!

Those caught in this rising rentals scenario are finding themselves in a tough spot. Having become hooked to the improved lifestyle that comes with living in a villa, they are now finding the step down to apartment living a bitter pill to swallow. As a result, many have been found to be entering into closed-door negotiations with their landlords over the quantum of rent hike.

The villa rentals market is governed by a few key aspects. First, the villas at The Springs are still relatively cheaper than other comparative communities elsewhere. Second, even within the Springs communities, the rental rates vary from villa to villa. Chief among the rent influencing factors are:

The Land Lord: The most critical influencing factor in the whole rental negotiation is without doubt, the Landlord. Often, the quantum of the hike can be discussed and revised based on one’s personal equation with their landlord. 

Payment Schedule: When it comes to payment schedules, the lesser the number of instalments, the better are the chances of negotiating a favourable rent on one’s favourite villa. So, it’d be wise to keep those rental cheques to as few as possible.

Amenities & Location: Even amongst the community, villas that are lavishly appointed and are located at certain preferable places tend to garner a higher rental than others. Amenities like swimming pools and villas with a golfing green or lake view tend to be high on popularity and therefore command a higher rental.

All things said and done, it often boils to the individual negotiations that renters have with their landlords. In the end, if the quantum of hike is higher than what one can fork out, tenants have no option but to do a rethink on the renewal of their leases.