6% reduction in service fee benefits the property owners and investors besides reducing the cost of owning a home in Abu Dhabi
The UAE capital’s real estate market recorded 19,033 transactions worth Dh77.6 billion in 2022.
Experts say that the Abu Dhabi real estate thrived as the government policy actions benefit the sector and attract foreign investors towards the development projects.
Referring to the Department of Municipalities and Transport (DMT) initiative to reduce service fee for real estate development project by six percent, the market stakeholders and executives said it benefits the property owners and investors besides reducing the cost of owning a home in Abu Dhabi.
“The reduction in service charges led to property owners and investors saving over Dh37.2 million in 2022,” according to the DMT statement.
The department said 319 of the total development project service and maintenance charges have been approved in 2022.
“The total sum of these service charge budgets is approved as of December 31, 2022, amounting to Dh722.6 million,” the statement said.
DMT introduced a comprehensive mechanism to monitor and regulate residential units’ service charges in 2020. The service fees were reduced in 2020 by 18.1 percent and by 8.3 percent in 2021, with the value of the reduction exceeding Dh200 million.
Dr. Adeeb Al Afifi, executive director of the Real Estate Sector at DMT, said the reduction in service fees for real estate units’ owners and investors in development projects will work towards enhancing the attractiveness of real estate investment in the emirate.
“It will also help owners manage their real estate in a more effective and efficient manner while lowering their operating costs and increasing the returns on their investments, as well as reducing the cost of owning a home in Abu Dhabi, keeping costs at competitive levels locally and regionally,” he said.
“The procedure is part of the DMT’s efforts aiming at further improving the standards of living for citizens and residents in Abu Dhabi by reinforcing sustainability and welfare levels in the residential and housing units,” he added.
The UAE capital’s real estate market recorded 19,033 transactions worth Dh77.6 billion in 2022. The sector recorded 9,010 sales transactions worth Dh23.5 billion and 10,023 mortgage transactions worth Dh54.1 billion in 2022, according to DMT data.
Evgeny Ratskevich, chief executive at Metropolitan Capital Real Estate, said the Abu Dhabi real estate market has bounced back strongly over the past few years.
“We have seen it continue its steady momentum in 2022 and expect the market both off-plan and secondary to continue its upward trajectory this year as well,” he said.
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The article originally published on zawya.com
