Abu Dhabi: 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% 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 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 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.
H.E 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.
About the Department of Municipalities and Transport (DMT):
The Department of Municipalities and Transport was established by Law No. 30 of 2019, and its main priorities are to realize the vision of H.H. Sheikh Khalifa bin Zayed Al Nahyan, President of the United Arab Emirates and Ruler of Abu Dhabi, which draws on the vision of the UAE’s Founding Father, the late Sheikh Zayed bin Sultan Al Nahyan to embrace progress by placing great value on the importance of pursuing development in line with both the needs of present and future generations and the community in general.
The authority embodies the values of good governance, driven by the needs of the community it serves and working with a passion to accomplish its aims. The Department focuses on finding the most effective means of providing essential, modern, responsive and comprehensive municipal services across three regional municipalities, and supports Abu Dhabi’s global position as a leader in innovation-led urban planning and transportation, as part of the Abu Dhabi government’s commitment to maintaining the highest standards to the benefit of all citizens and residents of the emirate.
The DMT is responsible for continually investing in the development of better infrastructure, facilities and transportation sectors within the emirate, guiding, regulating and monitoring urban development to enhance Abu Dhabi’s reputation as a world-class destination to live, work and visit.
The DMT also ensures the highest standards of safety, security, sustainability and technological development of the Emirate of Abu Dhabi’s land, air and maritime transport networks, in accordance with the highest international standards and the UAE’s legislation with the objective of being the region’s connection to the world.
The Department’s aspirations are driven by the simple proposition of innovating and building sustainable smart cities, fostering a capacity to change and adapt in order to maintain excellence in services and sustaining prosperity for future generations, allowing the entire Abu Dhabi community to reach their full potential.
