Rera plans index of service charges
Organisation seeks greater fee transparency to in bid reduce disputes
Dubai's Real Estate Regulatory Service, Rera, has announced that it is starting a new index of the service charges levied on property owners.
The organisation's CEO, Marwan bin Galfah, told Gulf News that the Index would would "define fair fees". It is due to begin next month.
He said it would "analyse not only cost but also quality, providing a sliding scale for basic to premium service".
Service fees in Dubai had become a major issue in recent years as some developers ramped up fees, which led to disputes with property owners.
However, fees have fallen by an average of 17% this year, according to bin Galfah, to an average of $3.13 (11.5 dirhams) per sq ft.
RERA has already approved the service fees of 541 projects in 17 different areas this year, including JLT, Tecom, Business Bay, Dubai Marina, JBR, Discovery Gardens, The Greens and Downtown Burj Khalifa, among others.
Bin Galitha has also recommended that more property owners' associations are formed to properly manage service fees and tointervene in potential disputes between service providers, property owners and tenants.
"In Dubai, we have around 291 property owners' associations while it should be around 1,900. But we plan to increase the number and promote this concept," he said.