Unpaid dues wreak havoc in the Dubai rentals industry The downturn in the Dubai realty industry that ravaged it for almost two years did leave everyone involved in a spot of bother. It was towards the end of last year that things came to a head and the situation bubbled over. Master Developer Nakheel, who had been haemorrhaging funds in the downturn, finally decided that enough was enough. The developer behind such premier communities such as the luxurious Palm Jumeirah and Shoreline complex got into quite a controversy over its actions against the residents. The community facilities like gyms, gardens and other common areas were declared to be out of bounds to residents. Further, they also barred access to the beach areas citing the pending settlement of unpaid dues. As was expected by industry experts, the move did not go down well with the residents. Most of them were tenants who had considered them to be lucky enough to find accommodation at one of the most sought after rentals in Dubai. Further, the tenants claimed that the landlords had collected all the necessary dues and fees that were payable and that Nakheel should take the matter up with the original flat owners themselves. The master developer tried hard to resolve the problem by reasoning with the current residents. However, the fact remained that the tenants’ claims were also true and that the dues had been paid up to the landlords. Thus, if anything, Nakheel should have been penalizing the landlords and not the tenants themselves. The matters did get a wee bit serious, and after some governmental intervention, things appeared to have been resolved. There were sporadic incidents being reported by tenants all across the Emirate, but relative calm appeared to have had set in. Earlier this month, the dues settlement issue reared its ugly head again and Nakheel was back in the news. This time around, it was the residents of the Marina Residences who were up in arms against the master developer. Apparently, Nakheel had emptied the community swimming pools at the prestigious Marina Residences settlement over the nonpayment of dues. Some residents were even claiming that the district cooling too was under threat of being disconnected. An almost unthinkable horror considering that this would have taken place just as the summer season was beginning. Eventually though, some dues were recovered from owners and Nakheel was heard to be assuring residents that common facilities would be restored as
soon as possible. However, the master developer was also reported to trying to bring attention to the millions of dollars in dues that were outstanding. With Nakheel being a huge player in the Dubai rental properties realty segment, such repeated incidents of misplaced actions are sure to affect their standing in the market. This therefore serves as a warning sign to all prospective tenants to clarify with their landlords on the status of this issue. It would also be preferable to get things in writing before handing over the cheque. Or else, the occurrence of such incidents is bound to be repeated in the coming months.
Published on Jun 26, 2012
When a master developer decides to rake up a storm over the non-payment of dues by owners, it is the tenants occupying the Dubai rental prop...