It raises its share from 17% currently to 40% by 2030

Realtors: The organization of the "district cooling service" stimulates its spread and reduces its fees in Dubai

• The decision to organize district cooling service will have positive effects on the real estate sector.

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Specialists in the real estate sector have stated that the decision issued by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of the Emirate of Dubai, finally, regarding the regulation of providing district cooling service in the Emirate of Dubai, will stimulate the speed and expansion of its spread in various regions of the emirate within next period.

They indicated to "Emirates Today" that the decision, while obliging the relevant government agencies and real estate developers, to provide the necessary lanes in the areas under their supervision, to extend district cooling networks and enable suppliers to provide district cooling service, will support increasing the opportunities to use these services further. Noting that one of the most important advantages of organizing the sector's work is to reduce fees, by organizing the work of companies, service providers and billing companies, in addition to raising awareness among various groups about the importance of these services as a future direction, to reduce carbon emissions.

In turn, the Dubai District Cooling Operators Association confirmed that the decision will contribute to raising the rates of using those services in buildings and areas in Dubai from about 17% now to 40% by 2030.

Positive effects

In detail, the President of the District Cooling Operators Association in Dubai and the CEO of the Emirates Central Cooling Systems Corporation (Empower), Ahmed bin Shafar, said, “The decision will contribute to raising the rates of using these services in buildings and regions in Dubai, and encouraging their spread at a more rapid and expanding pace,” indicating "The decision has positive effects in providing more protection and regulation for all parties."

He added that «the decision will have positive repercussions to raise the rates of competitiveness in the sector in the coming periods», pointing out that «the percentage of district cooling service usage of the total real estate projects in Dubai currently reaches 17%, while the decision will support it to about 40% Targeted by 2030 ».

"Empower currently has market shares in the district cooling service sector in Dubai, up to 76%," he said.

District cooling

For his part, Chairman of the Board of Directors of "W Capital Real Estate Brokerage", Walid Al-Zarouni, said that "the decision to regulate the provision of district cooling service in the Emirate of Dubai will stimulate and support the speed of expansion by providing these services in various real estate projects, especially as it obliges real estate development companies By providing the necessary corridors in the areas under their supervision, to extend district cooling networks, and to enable suppliers to provide service, which will in turn be reflected in raising competitiveness in that sector.

He added that "district cooling service is available in some projects now, but not on a large scale," noting that "the effects of the decision on the prices of new units in the projects that will provide that service depends on the different business and marketing policies of each company."

Al-Zarouni explained that “it is important to raise awareness among different groups of society, including investors, about the importance and benefits of district cooling services as a future direction, to reduce carbon emissions, especially since some investors or renters do not have sufficient awareness that makes them prefer to choose units. Real Estate uses these services ».

It is noteworthy that His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of the Emirate of Dubai, recently issued Council Resolution No. (6) for the year 2021 regarding the regulation of providing district cooling service in the Emirate of Dubai, which included the obligation of the concerned government agencies And real estate developers by providing the necessary corridors in the areas under their supervision, to extend district cooling networks, and enable suppliers to provide district cooling service.

Of particular importance

In turn, the managing director of the Harbor Real Estate Company, Muhannad Al-Wadi, said, “The decision to regulate the provision of district cooling service in the Emirate of Dubai is of special importance and will have positive effects on the real estate sector, which is considered one of the main economic sectors in growth.”

Al-Wadi said that "cooling fees have been the talk of the sector for a long time, whether from investors or end users, especially since some of them believe that there is an exaggeration in the cooling fees," adding that "the new decision came in a strategic time, to strengthen Dubai's global reputation, the status of its real estate sector and its importance." ».

He pointed out that the decision has positive effects in rationing water cooling fees, and activating the role of water cooling plants, because they are environmentally friendly plants and help with sustainability, and this is an integral part of Dubai's vision, which aims to be the most sustainable city in the world.

He continued: «The decision regulates the mechanism of action of these companies and the method of linking all parties involved in them and determining the invoices and fees.

This is a definite important effort that has a positive impact in the short term, and its impact is enhanced in the long term. ”

The managing director of the "Harbor" real estate company confirmed that the decision helps to reduce the burdens on the real estate sector, whether on the part of investors or end-users, and it will have a significant impact on the annual service fees.

Regulatory decision

For his part, the real estate developer, Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that “the decision is regulatory,” explaining that “the district cooling system, which began 15 years ago, is better in terms of climate and health, but due to the difficulties faced by real estate developers. They avoided investing in these areas, due to the high fees, and they became a repelling environment for the investor. ”

He pointed out that «the high cost makes individuals investors or renters avoid these areas, and increases the suffering of all developers working in these areas, as they find it difficult to rent housing units», adding: «It is assumed that this is an attractive business environment for investment, so the fees should be Less".

Al-Mutawa said that district cooling companies are making big profits, and the aim was mainly to provide end-users and investors with a healthy environment and climate.

In the same context, the real estate consultant, Mohammed Al-Hafiti, appreciated the efforts of the Dubai government to support projects and economic sectors, noting that this decision indicates continuous follow-up by the Dubai government, for everything that is in the interest of investors and the economy, in order to reach the highest levels of services provided to citizens and residents.

He stressed that the pricing study is necessary, in the interest of all parties, whether the owner or the tenant, and therefore the decision will benefit and benefit the areas covered with cooling services, to turn from areas of reluctance to investors, to areas that attract investors and tenants.

Service organization

The real estate broker, Majdi Abdulaziz, confirmed that “the decision to organize the provision of district cooling service in the Emirate of Dubai has many positive effects, to support and stimulate the use of district cooling services in various projects in Dubai during the coming period, which will accelerate the pace of expansion in the deployment of that service, It keeps pace with the accelerating local policies towards a green economy and reducing carbon emissions, ”calling for“ increasing awareness of the benefits of district cooling service. ”

Raising awareness about the importance of district cooling services as a future direction to reduce carbon emissions.

The effects of the decision on the prices of the new units depends on the marketing policies of each company.

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