DMT reports AED37.2 million savings for real estate investors in 2022 due to 6% reduction in service fees.
The Department of Municipalities and Transport (DMT) in Abu Dhabi has announced that it reduced service fees for real estate unit owners and investors in development projects by 6% in 2022. This reduction in service charges led to property owners and investors saving over AED37.2 million in 2022. Furthermore, DMT approved 319 of the total development project service and maintenance charges in 2022, amounting to AED722.6 million.
Dr. Adeeb Al Afifi, Executive Director of the Real Estate Sector at DMT, stated that the reduction in service fees aims to enhance the attractiveness of real estate investment in the emirate. It will also help owners manage their real estate in a more effective manner, lowering their operating costs and increasing investment returns. Additionally, this measure will reduce the cost of owning a home in Abu Dhabi, keeping costs at competitive levels locally and regionally. Dr. Adeeb added that this procedure is part of the DMT’s efforts to improve the standards of living for citizens and residents in Abu Dhabi by reinforcing sustainability and welfare levels in residential and housing units.
DMT introduced a comprehensive mechanism in 2020 to monitor and regulate residential units’ service charges. This regulation supports the sustainable growth of the real estate market and protects both owners and developers by establishing a clear framework on how these charges will be priced. Service fees are used to cover the expenses of common areas to preserve the quality, cleanliness, and security of the real estate units and the long-term value of the assets.
The reduction in service fees for 2022 follows previous reductions in 2020 and 2021. In 2020, service fees were reduced by 18.1%, and by 8.3% in 2021, with the value of the reduction exceeding AED200 million.
It is important to note that no unit owner may relinquish their share in the common areas to avoid payment of their share of the service fee. Additionally, the owner cannot be charged for the management, operation, maintenance, and repair of the common areas until they have been approved by the DMT.
This reduction in service fees for real estate unit owners and investors in development projects is a positive step towards increasing investment returns and reducing the cost of owning a home in Abu Dhabi. It is also part of DMT’s efforts to improve the standards of living for citizens and residents in the emirate by reinforcing sustainability and welfare levels in residential and housing units. The mechanism introduced by DMT to regulate residential units’ service charges supports the sustainable growth of the real estate market and protects both owners and developers. Ultimately, these measures work towards making Abu Dhabi a more attractive place to invest in real estate and live.
