A walk around some of the once glitzy developments of Dubai reveals the consequences of neglected maintenance: flaking paint, missing tiles and unwatered gardens.
But a much larger problem lies behind the walls of the buildings in the form of ageing mechanical and electrical systems.
When homeowner associations take control of their buildings this year, they could be hit with a multimillion-dirham shock because of widespread failure to contribute to "sinking funds" that replace and repair costly equipment.
"This is one of the main issues," said Peter Crogan, the chief executive of BCS Strata Management Services. "Some of these communities have not been saving up for the last several years and it could already be time to replace equipment."
As much as 30 per cent of a residential building's cost comes from the mechanical, electrical and plumbing systems. A homeowners association usually looks after the repair and maintenance of these systems by saving up funds over a number of years.
But with the two-year delay of the strata regulations and large numbers of defaults on maintenance fees - as high as 75 per cent, some developers say - there has been little regulation of these funds.
The Dubai Real Estate Regulatory Authority (RERA) is working with homeowner groups to rectify this by overseeing the future maintenance of buildings.
But the lack of adequate savings in a sinking fund could mean maintenance fees for some developments may have to be increased to make up these costs, Mr Crogan said.
"For some of these developments that have been occupied for three or four years, there could be a rush of having to raise money for the reserve funds to deal with these issues," he said.
Maintenance fees are traditionally split between operating fees for things such as air conditioning in lobbies and landscaping, and contributions toward bigger projects such as replacing lift parts and repainting the exterior of buildings.
To replace a basic chiller in a tower building costs between Dh2 million (US$544,536) and Dh3m, according to the facilities management company MAG Me Property Solution in Dubai.
"If there is no sinking fund, owners have to foot the entire bill at that point of time which could be substantial," said Mazen Falhout, the general manager of the company. Homebuyers should analyse developments to see if these larger maintenance projects have been taken into account, or risk losing out in the long run. "What might seem on the surface to be a good sales price may not be cost-effective over time, when the so-called hidden capital and their respective operational expenses have been factored in."
While the operating fees are important for the everyday upkeep of the building and attracting tenants, the capital maintenance fees are crucial for safety and the long-term value of properties, said Andrew Schofield, the head of buildings at the consultancy Aecom Middle East.
"You could end up damaging equipment," Mr Schofield said. "That reduces the value of the capital." By not properly replacing airconditioning filters for buildings, for instance, the cost of energy use can rise "dramatically" and the environmental sustainability of the building is reduced, he said.
"A building is a bit like a car," Mr Schofield said.
"When you go in to service your car, you have things that need to be done every six months but there are also bigger things that need to be taken care of over longer periods of time."
RERA is working with the Middle East Facility Management Association to draft regulations for sinking funds by ensuring each property takes into account the long-term costs of maintaining the building - a crucial part of retaining the value of a property. This will make it easier for homeowner associations to charge the fees needed.
But with many fees outstanding and, in some cases, not properly set up, the first order of business for owner associations will be to collect debt.
"The first 12 months will be about debt recovery," said Mr Crogan. "The significant thing is that debt stays with a building. If you don't save up for bigger maintenance projects, then you'll have to pay later."
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
COMPANY%20PROFILE
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Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
The biog
Name: Dr Lalia Al Helaly
Education: PhD in Sociology from Cairo
Favourite authors: Elif Shafaq and Nizar Qabbani.
Favourite music: classical Arabic music such as Um Khalthoum and Abdul Wahab,
She loves the beach and advises her clients to go for meditation.