Service charge limit imposed by Dubai authorities

Dubai's property regulator has moved to prevent developers from increasing service charges with the introduction of a new set of rules.

The Real Estate Regulatory Authority (Rera) has made the move after some investors in the emirate became angry that developers have been increasing service charges while property prices were falling, Gulf News reports.

UK-based investors who have been considering purchasing property in Dubai may welcome the move, as it may mean it will become cheaper to make a purchase.

Chief executive for Rera Marwan Bin Ghalita told the news source that the agency had been receiving "a lot of complaints" over the issue.

"We are in the final step on creating one service charges formula to make sure that all developers follow it when calculating service charges," he added.

In related news, Dubai's state-owned developer Emaar Properties could have its credit rating cut by Moody's Investors Service, which is assessing its position on the company.