Abu Dhabi’s Department of Municipalities and Transport (DMT) has revealed that the service fees for real estate units’ owners and investors in development projects were reduced by 26.4 percent during 2020 and 2021.
According to DMT, the service charges were reduced by 18.1 percent in 2020, with another 8.3 percent reduction introduced in 2021. The lowered service charges led to property owners and investors saving over $54.45 million during the past two years.
In 2020, DMT introduced a comprehensive mechanism to monitor and regulate residential units’ service charges. The regulation supports the sustainable growth of the real estate market and protects both owners and developers by setting up a clear framework on how these charges will be priced.
Dr. Adeeb Al Afifi, Executive Director of the Real Estate Sector at DMT, stressed that last year’s implementation of the budget and service fee approval process had a significant influence on serving and protecting the interests of real estate investors and individual owners.
“Our goal is to provide clear regulatory systems that will increase real estate sector transparency and ensure adherence to legislation established in accordance with the highest international standards in this industry. By providing a precise and detailed framework, the current system assists developers and investors in accurately calculating fees, making decisions, setting budgets, making sure the business stays in operation for the long run and achieving the greatest possible level of transparency and trust between all parties.”
The implemented system enables owners and developers to efficiently manage their properties and lower operating expenses, improving their return on investment. The move also enhances Abu Dhabi’s global reputation as an attractive investment market for real estate.