Apartment Owners Slapped With High Maintenance Bills
With a large number of apartment owners not paying their service tax on time, a lot of apartment blocks in Dubai are facing a severe cash crunch. In certain parts, there are close to 75% defaulters. This has come into the spotlight in recent times because real estate developers are handing over the administrative charge to the buildings’ management committee as stipulated by the newly implemented laws in the country.
Even apartment blocks in Dubai Marina, which caters to some of the most influential people in society, has not been spared the brunt. A large number of people who have purchased their homes in these blocks have failed to pay up their service tax which has led to this problem.
Residents have been having concerns regarding service tax for a long time now because the values of most of the properties have fallen in value by half since the year 2008. However, there has been no change in the service tax being charged. Though the service charged increased with the rise in the real estate prices, the drop in the property value did not show any reduction in the service charges.
As of now, most resident owners have refrained from paying either because they are not being provided with the facilities they were promised or the amenities provided to them are not maintained well.
I have had property on the Marina since 2006.
There is still incessant building work going on all around. From our bedroom window we can see the water and the yachts. (Beautiful view). All you can see from downstairs is a large untidy patch of ground, which no-one can tell us what it is intended for and how long it will take to make it tidy.
I have learned that several restaurants are closing down soon as the service charges can not be met. Also
they were promised an alchohol licence 9 years ago. I know we are living in a Muslim country and must respect their laws but the Europeans do drift to the hotels and bars where they can relax with a beer.
The Marina is a lovely place but so many people are leaving.
Car parking is a problem here too. It is a real shame as it is a lovely place to live.
hi gillian,
i purchased a 2 bed apartment in Botanica nearly 3 years ago as an affordable way to move to such a lovely place. can you tell me the average service charge cost so i know what to expect? i am very excited about the move to dubai and want to make the most of it, are restaurants closing down due to the economy and should i be worried? cheers