Free space

Real estate and cooling fees

Mohammed Al-Hafiti

February 28, 2021

Refrigeration systems mean the central production and distribution processes of cooling energy. This system delivers chilled water through an insulated underground pipeline to residential buildings for the purpose of cooling the internal air of buildings located within a certain area. Real estate units, within all buildings, use this “cooled” water to reduce The temperature of the air that passes through the air-conditioning systems, while the costs of the cooling system include three types of fees, which are: consumption fee, application fee, and additional fees on fuel.

Accordingly, the Emirate of Dubai has recently witnessed a rapid development in the renaissance of the architecture and the increase of residential complexes, which resulted in the presence of areas subject to the Dubai Electricity and Water Authority (DEWA) system, concerned with electricity, water, cooling and other bills, as well as other areas subject to the system of cooling companies in case The use of air conditioning, as for "electricity and water", is subject to the "DEWA" system, meaning that the owner of the property or the tenant in those areas will bear two bills per month.

This has led to the current reluctance of tenants and owners to live in areas subject to this system, due to the high bill for the cooling system, as it charges you even if the property is vacant, which reduces the value of the property in those areas.

The system also differs in terms of apartments and villas, as in comparison, we see that the service fees are very high in apartments, and the rent is low, due to the cooling fees, so that the one affected will be the property that faces low demand compared to villas.

Since the problems and losses began to appear clear to everyone, we must devise solutions to this problem to address it through the following points:

First: Using clean energy in these complexes, and moving away from any source that may pollute the environment, to preserve sustainable cities.

Second: Everyone's contribution to stimulating the real estate market, by supporting real estate in these areas, and intervening to find a solution that makes it easier for owners and tenants to benefit from these areas.

Third: Fees must be reduced or canceled, in case of non-use or non-activation of the service.

Fourth: Laws and regulations must stipulate that this fee is in the event of using the service, or there is an option for the lessee to replace it with a clean card.

Fifthly: It was noticed that the areas under the "Dewa" system, the demand for it is high, and the property is high, compared to the areas that are subject to the cooling system. Therefore, the property must be supported, and the fees equal to all areas of the emirate.

Sixth: The high fees for the cooling system in these areas have resulted in damage to the real estate market, and with the current situation, this matter must be reconsidered through a detailed study, and to arrive at results that can be used in amending the existing situation.

It is no secret to all that Dubai has started to produce clean energy, by using solar panels, and now has sustainable cities, and this is an encouragement to reduce costs and obtain a clean environment.

Therefore, everyone must, before signing the contract with the owner of the property, make sure that you have obtained a written agreement that clarifies the financial obligations that each party bears.

Real estate consultant