Saturday, June 02, 2012

Discovery Gardens owners warned against short-term leasing of apartments


Individual real estate owners’ in Discovery Gardens have been warned against leasing their apartments on short-term basis, while violators are likely to face legal action, it has been announced.

According to notices posted in the building lobbies within the master community, the Dubai Department of Economic Development (DED) revealed that the residential units cannot be rented out on short-term lease, as such activities are solely restricted to hotel apartments companies. The notice warns of stringent legal action against violators.

However, it is said that despite such warning, the property owners have been placing online adverts, offering furnished apartments for Dh.2000 to Dh.6000 per week. According to owners, renting out on such short-term basis, offers great investment returns on investment.

The Nakheel interim Chief Executive Officer, Sanjay Manchanda, when speaking to the media in February, said that short-term leasing has been rampant in Palm Shoreline Apartments, and such renters were creating problems when they were refused access to pools, gymnasium and beach.

The CEO –Business Registration and Licensing at DED, Mohammed Shael, explained that short-term residential rental is an economic activity. Any individual keen on being involved in such an activity will have to seek license being able to access such service. This will require incorporation of a company through Department of Tourism and Commerce Marketing.

Discovery Gardens comprises six themed communities, including Zen, Mediterranean, Mogul, Contemporary, Mesoamerican and Cactus courtyard gardens, drawn on inspiration by garden living. It spreads across 26million square foot plot, offering 291 buildings.

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