Nakheel to reduce Service Charges at Discovery Gardens

Dubai, 23 June 2009

Dubai master developer Nakheel today announced a new, lower service charge budget for its Discovery Gardens community, following a detailed review of scope and suppliers. The new rate has been formally agreed with the Dubai property market regulator, RERA, and will mean a reduction of approximately AED 5 per square foot in service changes for homeowners.

The new lower service charge rates will be backdated to the 1st January, 2009, with any rebates for householders being credited against next year’s service charges effective from 1st October, 2009.

Abdulrahman Kalantar, Managing Director of Nakheel Asset Management and Design (NAMAD), said:

“When we first set the service charges for Discovery Gardens, they were based on our best estimates for this new Nakheel community. Following a lengthy review, we have been able to take advantage of recent reductions in the cost of goods and services, which has in turn reduced our overall service charge budgets. We’re now delighted to pass on these cost savings to every homeowner at Discovery Gardens.”

Presently, across Nakheel’s developments, including Discovery Gardens, service charges are budgeted according to projected costs, and all accounts are independently audited to ensure accuracy and transparency for homeowners. Nakheel works with RERA, residents and suppliers to ensure that the charges are in line with market averages.

Following the introduction of Strata Law in April 2008, Nakheel made the necessary preparations to register the Owners’ Association with RERA once the regulations are finalized by the Dubai Land Department (DLD). As master developer, Nakheel will ensure that the owner associations are established in a timely manner, together with the creation of an owner’s committee, which will empower residents to actively participate in the management of their building.