Tue 01-03-2022 23:55 PM
ABU DHABI, 1st March, 2022 (WAM) -- The Department of Municipalities and Transport (DMT) today revealed 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 AED 200 million 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 the real estate market and protect 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, emphasised 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.
Al Afifi added, "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 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.