Residents of two luxury apartment blocks on the Shoreline of Palm Jumeirah say they have been barred from using the beach outside their apartments over a long-running commercial dispute.
The Palm Jumeirah homeowners associations have said they were up to date with all payments to Nakheel, but claimed they are still denied access due to a commercial dispute between Nakheel and IFA Hotels and Resorts, owners of site operator Riva Beach Club.
This week, a letter was sent to Nakheel which stated a legal opinion that residents had a right to use the beach. Nakheel’s payment dispute is with the beach club, but residents said they are the ones being penalised by being denied access to the beach.
Estate agents claimed that buyers are being put off by the situation and property prices have dropped as much as 10%. "We have been lobbying the developer and Rera (the rental dispute authority) to bring a resolution without any joy," said Julian Redman, chairman of the Al Haseer & Al Nabat Owners Association.
"We have seen the value of our properties fall, and it surely must affect the credibility of the Dubai real estate market if investors see developers can change the rules post-purchase without any explanation."
A row started last year, when security guards marched on to the beach demanding that everyone leave and take their belongings with them. The rear doors to the two buildings concerned – 7 and 8 – were locked, leading to fire safety concerns, and were only reopened following complaints.
"The tactics to remove residents from the beach and subsequent confrontational behaviour by Nakheel security have been incomprehensible," Mr Redman said. "In one instance a lady with her child was so intimidated by security guards that the girl was brought to tears."
This week, a letter was submitted to Nakheel following a consultation with Rera, stating a legal opinion by Al Tamimi & Co that residents had a right to beach access but that Riva Beach Club could not operate on the beach without a signed licence agreement.
Residents again tried to access the beach but were denied by Nakheel employees. They have since been sent a letter saying anyone trying to sunbathe there would be treated as trespassers.
Nakheel claimed the beach club has charged residents and guests several million dirhams to use the beach without prior permission, and without making any payment to Nakheel.
"Under the terms of the sales contract issued to IFA when they bought the clubhouse facility, beach access is subject to fees being paid to Nakheel," a spokeswoman said.
"IFA has continually delayed entering into this agreement and has therefore been charging residents and guests to use a beach it has no legal right to grant access to."
In December 2016, Nakheel offered residents membership of neighbouring Shoreline beach clubs through the owners’ associations. But this may not have proved to be a tempting offer as access was for beaches that are not in front of the two buildings. And there has also been a rise in communal clubhouse membership fees, with annual rates up from Dhs 5,700 to Dhs 11,400, which residents would be forced to pay on top of current payments being made to IFA.
Two months later, the parties reached an agreement covering beach club’s use of the beach over the years. Almost four months on, Nakheel claims it is yet to be paid by beach club. Access will be granted once beach club pays fees it has collected and signs a new contract.
"We sympathise with the people affected, but reiterate that our correspondence is with IFA as we have no contractual relationship with individual investors at these two Shoreline buildings," Nakheel said.