Abu Dhabi reduced service and community charges by 6 per cent last year for owners and investors in jointly owned properties, according to Abu Dhabi Real Estate Centre (Adrec).
A total fee reduction of Dh39.7 million ($10.81 million) incentivised real estate buyers in the emirate, the Abu Dhabi Media Office reported on Wednesday, citing Adrec, a part of the Department of Municipalities and Transport.
“These reductions are anticipated to streamline property management, cut operational expenses, elevate returns on real estate investments, and offer competitive pricing for homeowners in Abu Dhabi,” Adrec said.
The UAE’s property market remained strong last year with transaction volumes rising both in Dubai and Abu Dhabi amid government initiatives such as residency permits for retired and remote workers and overall growth in the economy.
Abu Dhabi recorded 10,557 real estate transactions worth Dh46.33 billion in the first half of last year, the emirate’s media office reported in July, citing data from the Department of Municipalities and Transport.
Property deals in Abu Dhabi grew amid higher demand from domestic and GCC investors.
The value of the deals more than doubled during the six months while the volume of transactions, including property sales and mortgages, rose by 41 per cent on the previous year.
Dubai recorded 116,116 new property transactions worth about Dh429.6 billion ($117 billion) in the first nine months of last year, according to the latest data from the Dubai Land Department.
Total transactions in the emirate increased by 33.8 per cent annually, while values rose more than 36.7 per cent during the period.
Analysts say the macroeconomic sentiments for the UAE remain favourable for further growth in the real estate sector.
“The non-oil sectors have seen significant expansion over the past two years … [and] remain healthy and are well positioned to grow over the next twelve months, affecting the real estate sector positively,” said Swapnil Pillai, associate director of research at Savills Middle East said last month.
The UAE Central Bank has increased its 2024 growth forecast for the country’s economy to 5.7 per cent, from 4.3 per cent previously, due to an expected rise in oil production next year.
According to the revised estimates by the banking regulator, the country’s economy grew 3.1 per cent last year.
Adrec said lowered fees incentivised investors and potential real estate buyers in Abu Dhabi.
“This initiative not only enhanced the attractiveness of real estate investments in the emirate but also heightened the sector’s competitiveness,” it said.
The total value of jointly owned property development projects that received approvals until the end of the fourth quarter of last year reached Dh685 million, according to Adrec.
“The reductions in service and community charges support investors by achieving higher yields while keeping rental rates fixed; this also helps owner-occupiers reduce costs,” said Haider Tuaima, director and head of real estate research at ValuStrat.
Abu Dhabi has been progressively reducing charges on property owners.
It resulted in service charge reductions of 18.1 per cent in 2020, by 8.3 per cent in 2021, and by over 6 per cent in 2022, Adrec said.
This article is originally published on: https://www.thenationalnews.com/business/property/2024/01/24/abu-dhabi-reduced-service-charges-by-6-on-jointly-owned-properties-in-2023/
