He scored 13 dirhams per square foot, compared to 14 dirhams in 2019

Dubai Lands: a decrease of 7.2% in the service allowance rate during 2020

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The Dubai Land Department confirmed that it was able to reduce service fees by a good rate during the current year, by launching a number of regulatory measures.

She explained to Emirates Today that the “average service allowance” in all regions decreased by 1.02 dirhams, to 13.06 dirhams per square foot in 2020, compared to 14.08 dirhams in 2019, a decrease of 7.2%.

Service fees

In detail, the Dubai Land Department, represented by its regulatory arm, the Real Estate Regulatory Agency (RERA), confirmed that it was able to reduce service fees by a good rate during the current year, by launching a number of regulatory measures, including the requirement to check budgets for service allowances and deposit special fee amounts It is held in regulatory accounts supervised by RERA, as well as conducting tenders for all service providers in joint ownership properties.

Reduction ratio

In statements to Emirates Today, Dubai Land stated that the comparisons made on the projects that submitted their budgets for the years 2019 and 2020 show that the “service allowance rate” in all regions decreased by 1.02 dirhams, to 13.06 dirhams per square foot during 2020. Against AED 14.08 in 2019, a decrease of 7.2%.

The department stressed the need for real estate owners to pay these fees regularly, to ensure the sustainability of services in joint ownership properties, which is in the interest of real estate unit owners in these projects, and to preserve the public interest.

Private initiatives

She emphasized that the Real Estate Regulatory Agency (RERA) always seeks to reduce the service allowance, by launching many initiatives, including the requirement that all requests for budgets for the "services allowance" be audited by a certified financial legal auditor, and the deposit of any fees for services in regulatory accounts. It operates according to the mechanism of escrow accounts by account secretaries

She added that it also requires that all service providers conduct tenders for joint ownership real estate, enter all “service allowance” data into the “owners system” database in the DLD, as well as display data open to the public via the department’s website in the “Service Allowance Index” service. .

"Dubai Land" revealed that the highest rate of decline in the service allowance was in "Jumeirah Village", as the percentage of decrease reached 18%, while the lowest rate of decrease was recorded in the "Jumeirah Lake Towers" by 2%.

Joint ownership

Regarding the effects of the joint ownership law on the sector, the department confirmed that there are many positive effects that emerged after the application of the new law, including organizing the work of all stakeholders working in the joint ownership sector, preserving the rights of real estate owners, and most notably opening organizational accounts for projects and auditing transactions Requests for budgets for services allowances, quality control of joint real estate services, and organization of real estate management.

Real estate seizure

The Real Estate Regulatory Agency (RERA) stated that among the competencies of the real estate control employees is to monitor the work of management companies, ensure the quality of maintenance and services provision in shared properties, in order to enhance the sustainability of the quality of services, and impose the required oversight to ensure the application of Law No. (6) of 2019 regarding joint property ownership .

• 18%, the highest rate of decline in services allowance, which was recorded in "Jumeirah Village".

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