UAE | Housing & Property

Community service fee in Arabian Ranches: Big jump in costs

Service fee for property owners in the Arabian Ranches has gone up

  • By Sharmila Dhal, Senior Reporter
  • Published: 00:00 March 18, 2010
  • XPRESS

 Dubai: The community service fee for property owners in the Arabian Ranches has gone up by around 18 per cent with effect from January 1, taking many residents by surprise.

Sources said owners received a notification from the Emaar Community Management earlier this year stating that the service fee had gone up from Dh1.51 to Dh1.78 per square foot, which works out to an increase of 17.88 per cent from last year.

While the service fee by the owners is utilised to cover 100 per cent of the operating and administrative expenses (general fund) of the community, it makes up for 80 per cent of the master community budget as well, the sources said, adding that the latter component had risen by 46 per cent this year.

This was because of a huge deficit in the master community budget, they said, explaining that the master community levy, which is shared by both residential and non-residential entities, is used for maintenance of roads, bridges, pavements, sewage treatment and storm water drains.

An Emaar spokesperson said: "Owners who would like to review the budget are encouraged to meet with our community personnel for further details."

Comments (1)

  1. Added 10:24 March 20, 2010

    This was an interesting read. I have come across this situation being faced by other communities, but it’s due to lack of regulation of the service charges of the master community. Many residents believe that it’s only their immediate community for which they pay the service fee. However, there is a portion of that service fee that contributes to the upkeep and management of the master community as well. This would include critical infrastructure maintenance that one does not see or encounter directly but can affect your life in a community if not managed or maintained properly. The earlier this is managed correctly, the easier it gets as the community moves forward.

    Anonymous, Dubai, United Arab Emirates

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