He reached 7 years in one of them
Realtors: Exemption from “service fees” .. a marketing offer that is popular in the real estate market
The offers offered in the real estate market are attractive to investors and those interested in buying real estate in Dubai.
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The real estate market has recently witnessed marketing offers aimed at bearing service fees for the owner of the housing unit or the potential buyer of this unit.
The forbearance periods, according to some offers, ranged between three and seven years, during which the value of service fees is “zero”.
Realtors told «Emirates Today» that the exemption from service fees plays a role in real estate marketing and increasing sales, pointing out that these offers have become popular in the market, referring to the fact that these fees represent an obstacle to making investment decisions by some investors, as well as for its role in reducing annual returns.
They expected that the next stage would witness a correction of some of the problems and complaints raised by owners and investors, including service fees.
Service fees
These fees cover: maintenance, repair and operation services for properties in Dubai, as they are paid by property owners to maintain buildings and residential complexes in the event of any damage or malfunction. The fees also include property management, such as maintenance, cleaning, security staff, gardens, and general maintenance of the complex or building.
Service fees in Dubai apply to all types of real estate in the city, including villas, apartments, or commercial real estate, while fees are calculated on the basis of one square foot, and vary according to the type and location of the project, and whether it is a residential or commercial project.
mutual benefit
The real estate consultant, Muhammad Al-Hafiti, said that the exemption from service fees plays a role in real estate marketing and increasing sales, pointing out that service fees are one of the problems in the real estate market, especially in light of their rise in some areas.
Al-Hafeiti added that real estate developers are fully aware that exemption from fees is an excellent selling point to attract new buyers, stressing that exempting the buyer from these fees increases the demand for projects, as reducing fees or exempting them for a period ranging between three and five years represents a benefit for buyers and developers alike. .
Mandatory offers
In turn, the real estate expert, Mohammed Hareb, said that real estate offers related to service fees should be mandatory for some real estate development companies, pointing out that what is being rented in the current period does not cover the costs of service fees, which average between 10 and 15 dirhams per square foot in some Real estate, and may increase according to location and finishes.
Abu Hareb stressed the need to reduce service fees, and to submit offers on them, such as exempting them for a period of between three and five years to be attractive to investors, indicating that service fees reduce annual returns for investors.
He continued, "Real estate developers must study the profit margin when they launch new projects, in order to submit offers for exemption from service fees for a period of no less than three or five years, and in order for investors to be reassured about renting residential units."
Attractive offers
For his part, Head of Marketing at Aras Real Estate Group, Alaa Masoud, said that the offers offered in the real estate market are currently attractive to investors and those interested in buying real estate in the Emirate of Dubai, including those related to reducing the value of the property needed to obtain an investor residence to reach 750,000 dirhams, as well as Long payment plans of up to 10 years, and service fees that are waived, confirms the intensity of competition.
He pointed out that there are complaints from some owners regarding the high service fees, but the increase in the number of services in real estate projects that include swimming pools, for example, requires a high cost, and therefore, the next stage in the real estate market will witness a correction of some of the problems and complaints raised by owners and investors. Including service charges.
angel join hands
In addition, the managing director of Harbor Real Estate Company, Muhannad Al-Wadiya, said that the solution is not to submit offers, but rather there must be a radical solution through greater solidarity of the efforts of the owners' councils.
Al-Wadiya explained that the intensive offers from real estate companies come to keep pace with the complaints about the high service fees, and in most cases the fees are hidden in the price of the property, and they are not real offers.
He pointed out that the developers set contractual conditions that would be a way out for them to compensate for the reduction in the fees submitted.
He stated that the solution lies in spreading awareness among developers and investors, explaining that the decision makers: the Land Department and the Real Estate Regulatory Agency issued Law No. 6 of 2019 and it is being followed, but that greater efforts are still required from the owners' councils and owners' associations, and to take innovative initiatives. To reduce service fees, and work on initiatives to increase the income of public utilities in an innovative way that enriches real estate projects.
Al Ali: Cost above the price of the property
The real estate expert, Muhammad Al Ali, said that some areas include service fees for free, including for specific years, and others for life, and this is better, and the demand for them is more.
He explained that service fees vary from one region to another, as in some regions it amounts to 10,000 dirhams, and in others it is 15,000, or 20,000 dirhams annually, and therefore, it is a cost above the price of the property.
He added that the current offers include an exemption for up to five years, or more, after which service fees are applied if things improve, or they are exempted.
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