August 17 2009

About 95 per cent of property owners in the UAE feel developers should be fully accountable to the owners and any rules or regulations within managed residential communities should be voted upon by owners first, according to a survey.

Real Opinions, a Dubai-based market research company, said eight out of 10 residents who own property said developers did not "have best interests of owners at heart when managing residential communities in the UAE".

There were also over nine in 10 who actually believed the reputation of developers was being harmed by how they managed residential communities.

Dan Healy, CEO of Real Opinions, said: "Media reports in the UAE have documented the challenges some developers are having managing communities they have built. Property management may be perceived by some developers as a viable business model to raise revenues, but owners and residents are requesting for them to be at the heart of decision-making. Owners are seeking value for money and expect their fees to be paying for the services and upkeep of their communities and not be diverted elsewhere for the benefit of the developer."

The days of developers being able to decide service and maintenance charges on their developments unilaterally appear to be coming to an end.

The internet is proving to be a refuge for aggrieved owners to communicate with each other and to even form their own owners associations.

Real Opinions also investigated on the issue of whether the owners should choose the ideal management for their communities or not. About 44 per cent of the respondents said they favoured owners vote to appoint a company to manage, set fees for owners and look after the shared facilities. In comparison to the present set-up for many in the UAE, just nine per cent prefer the developer to manage, set fees for owners and look after the shared facilities.

In terms of the contentious issue of fee levels for managed communities in the UAE, 44 per cent thought a fee based upon square foot/area covered would be the fairest rather than on the value of the property (20 per cent) or number of bedrooms (16 per cent).

Healy said: "The usage of the internet by owners' associations is also providing insight for potential property owners in the UAE from around the globe. These online communities are providing a window on the levels of satisfaction from owners in these residential communities and the ability to engage with them by asking questions. As a consequence, the value of such property can be impacted based upon both high and low levels of satisfaction and in turn further justify the concern and actions of owners in protecting their real estate assets.

"Overall, research results show that managers of these residential communities would be wise to open up the channels of communication and place the opinions of owners at the heart of decisionmaking to ensure their satisfaction for the benefit of all, including the developers themselves.

"Further research on this and other related subject will be carried out in the coming months. We're encouraging UAE residents and property owners to visit our website to have their opinions heard in this research by joining our panel."

Source: Arabian Business