The UAE’s Department of Municipalities and Transport (DMT) said that service fees for real estate units’ owners and investors in development projects were reduced by 26.4 percent during 2020 and 2021.
In 2020, the service charges were reduced by 18.1 percent, with another 8.3 percent reduction introduced in 2021.
The reduction in service charges led to property owners and investors saving over 200 million AED ($54.45m) in 2020-2021.
DMT introduced a comprehensive mechanism to monitor and regulate residential units’ service charges in 2020.
The regulation supports the sustainable growth of real estate market and protects both owners and developers by establishing a clear framework on how these charges will be priced.
Dr. Adeeb Al-Afifi, Executive Director of the Real Estate Sector at DMT emphasized 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.
“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 allows owners and developers to efficiently manage their properties and lower operating expenses, increasing their return on investment.
The move also enhances Abu Dhabi’s global reputation as an attractive investment market for real estate.