Dubai homeowners are planning to launch a legal campaign against Nakheel after they were forced to scrap extension plans to their luxury villas after the master developer increased its application fees by up to 233 percent. Under the terms and conditions laid out in Nakheel’s ‘Guidelines and Procedures for Villa Extension Applications’, residents are required to pay an application fee as part of the approval process before they can start construction.
Previously, the fees ranged from AED150 ($40) per square foot in Jumeirah Village up to AED600/sq ft in Palm Jumeirah. Residents were informed in September that the government-owned developer had increased the fees by up to 233 percent, effective immediately, and any applicants whose paperwork had expired would be required to reapply under the new terms and conditions and pay the higher fees.
As a result of the surge in charges, many disgruntled residents were forced to scrap their plans. Residents at Jumeirah Village have now launched a petition calling for the fees to be scrapped altogether. Walter Candelu, a representative for the group, told Arabian Business homeowners also planned to launch legal action and were currently consulting with lawyers to prepare a case against Nakheel. They claim that the increase in fees has negatively impacted the value of their properties.
“Nakheel’s propaganda, when we all bought the properties, was that major extensions up to three additional bedrooms were allowed thanks to the big plot area… All of us are obviously now reconsidering the possibility of extending our villas. We feel our rights [have been] completely ignored and trampled on… We feel deprived of our rights of ownership,” one resident told Arabian Business… see more