In Dubai property market, time homeowners gave serious thought to service charges

In Dubai property market, time homeowners gave serious thought to service charges

In Dubai, home owners associations (HOAs) have both been increasing the power they exert on the value of ready properties (by virtue of the upkeep that they provide to the community) as well as exert their influence by going after owners not paying dues. (With courts now allowing them to auction off properties of non-paying property owners).

This has meant the services that HOAs provide directly impacts the value of the asset and is therefore a significant criteria in the decision-making of potential buyers of ready units. The same should be applicable for offplan units as well, as service fees can often be inferred by the amenities the developer is providing.

Line items in the budgets approved by RERA gives the potential buyer an insight into where the proceeds of the fees are going. The reserve fund allocations will give an insight into the capital expenditures, whereas running expenses reveal what is being done for the quality of the upkeep.

Buy the bargain mindset

In the midmarket, the variability of the service fees is significant and the knee-jerk reaction has been to acquire the property with the lowest charges. Even though studies have shown there is an actual positive correlation between the rate of