DUBAI // Shoreline residents on The Palm Jumeirah claim they are being held to ransom by developer Nakheel after this year’s beach club membership fees were doubled without warning.
Residents first had to contend with having surf equipment confiscated, then their beach access was restricted during a development row.
Now this fees rise has sent social media message boards into meltdown and prompted some to say they will move away from The Palm.
“It has come as a shock because there was no forewarning, or explanation as to why there was an increase,” said Irish tenant David, who received an email on Thursday demanding the new payment of Dh9,000.
“As far as I’m aware there have been no improvements in the facilities and there are none planned.
“So to double the fees seems unjustified.”
The fee had remained the same for at least eight years, and covered pool and beach access and the use of gym facilities.
There is also a function room available.
Clubhouse passes for Shoreline expired on December 31, and tenants have had to present new ones to gain beach access since then, as long as their landlords were up to date with paying the new charges.
“I know several tenants who have been trying to contact their landlords because the bill payments were late and they have been denied access,” David said.
Nader Ahmed is managing a three-bedroom Shoreline flat as an investment for his father and has been paying an annual fee of Dh5,700 since 2008.
That jumped to Dh11,400 for this year.
“We had tenants move in two months ago, and we’ve been asked by them if we’ve paid the clubhouse fee,” he said.
“I told them we had not received any demands then later received this email with the new charges.”
Mr Ahmed went to the Land Department for guidance but he was told that it was not their jurisdiction.
Failure to pay the revised fees could result in the developer withholding a no-objection certificate should they wish to sell the flat in the future, hindering any sale.
“One of the selling points of The Palm is beach access, and we never add on charges for beach membership,” Mr Ahmed said.
“It has always been part of the package. We have no information of the service charges, so don’t know if they will go up or not.
“Nakheel said we have been receiving discounted rates but it is the first we heard of that. Frankly, it’s despicable.”
This month, Nakheel announced that last year was its most successful year to date, with record profits of Dh4.96 billion, up 13 per cent from Dh4.38bn in 2015.
The developer generated a net profit of Dh955 million for the last three months of last year, a 22 per cent leap over the same period in 2015.
Development projects remain the core of Nakheel’s business but it is bolstered by retail, -residential leasing and also hospitality, which alone enjoyed a 50 per cent increase in revenue last year.
For three months last year, more than 1,000 residents of Shoreline buildings Al Haseer 7 and Al Nabat 8 were unable to use the beach nor the facilities of the Riva Beach Club.
Nakheel blamed IFA Hotels and Resorts, which runs the club, because it had not paid fees for beach access.
Shoreline resident Chris Spong had his beach equipment confiscated by Nakheel despite paying for a rental locker last year and is now moving off The Palm.
“Services have deteriorated in the past four years with costs increasing,” Mr Spong said.
“Most landlords struggle to make payments on time, so services are suspended.
“I can’t see why fees have doubled when no improvements have occurred.
“Day guest fees have increased to Dh100, so it’s now a better option to move out and visit a hotel.
“It’s no wonder the rents have dropped this year.”
A Nakheel spokeswoman said: “Residents at The Shoreline Apartments have been paying reduced beach access fees for more than eight years.
“The updated fees, which are the same as those charged in 2008, apply for each unit and not each person, and therefore they remain among the most competitive beach club charges available.”
nwebster@thenational.ae
