Buyer Beware: Insanely High Mainentance Costs Destroying UAE Real Estate Market
Just ask yourself, why would you buy when the charges may be as high as 100k per year for maintenance…
Homeowners in The Cove development in Ras al Khaimah could each face service bills of more than Dh100,000 (US$27,226) a year because the developer must rely on generators to provide power to the luxury resort.
That is more than the average cost of renting a villa in the emirate, which has been beset by acute electricity shortages.
“If they are running the airconditioning during the month, they are having a bill of Dh3000 to Dh4000 a month,” said Ashraf al Agamawy, the manager of the project, which includes a five-star Rotana Hotel.
“We don’t get electricity from the Government and are running over eight diesel generators, which is very expensive.
The Cove in Ras Al Khaimah
It costs me about Dh2.5 million per month.”
The Cove was launched in April 2005 by Orascom Hotels and Development, one of Egypt’s largest developers. It comprises 78 apartments and 188 villas, 75 of which were sold under a form of timeshare agreement with the Rotana Hotel.
Under timeshare agreements, owners are allowed to use their villas for a maximum of four weeks a year…SOURCE
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Tags: 5 Million, Airconditioning, Apartments, April 2005, Ashraf, Developers, Diesel Generators, Egypt, Electricity Shortages, Emirate, Face Service, Five Star, Hotels, Luxury Resort, maintenance, Quot, Ras Al Khaimah, Real Estate, Real Estate Market, Service Bills, the cove, Uae
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