Property service fees index 'could be good news for investors'

04/09/2012 - Dubai Property News Posted by Bob Brunskil
Property service fees index 'could be good news for investors'

As of next month, Dubai's Real Estate Regulatory Agency (Rera) will be issuing a service fee index. Chief executive of Rera Marwan Bin Galitah told Gulf News that this will define what constitutes a fair price, at the same time as analysing other considerations. For instance, quality of service will also be assessed, with a sliding scale provided for everything from basic to premium options. He underlined the fact that implementation of the index is by no means compulsory, but expressed optimism that it will bring more transparency to the market, as well as reducing the chance of problems arising - such as disputes over fees. Another key benefit Mr Bin Galitah highlighted was the fact that this is a serious consideration for investors - and this could facilitate more decisions to buy property in Dubai. Indeed, this is a key concern, as investors from all over the world have been looking to Dubai for a wide range of different kinds of property. Surveyor for industrial and logistics at Cluttons Andrew Powell emphasised the fact that Dubai is frantically building industrial zones that are attracting a great deal of interest among wealthy individuals with a lot of capital. He claimed that as a result of this trend, asking prices on assets have leapt sharply because of the relatively limited supply of quality sites. Mr Bin Galitah noted that his organisation has approved the services fees of no less than 541 projects in 17 different areas in Dubai this year. These include Dubai Marina, JLT, Down Town Burj Khalifa, Motor City, Emirates Hills and The Greens, as well as Arabian Ranches, Discovery Gardens and Dubai Media City. The expert stated that the proposed fees fund the upkeep of a building, from utilities to security and cleaning - and they should be regulated as a result of this. He commented: "The goal would be to counter pressure to simply slash costs and possibly quality, especially as competition in the growing facility management industry intensifies."