According to experts, Abu Dhabi real estate has flourished as a result of government policies that support the industry and draw foreign investors to the city’s development initiatives.
The market participants and executives mentioned the Department of Municipalities and Transport (DMT) initiative to reduce service charges for a real estate development project by 6% and stated it benefits the property owners and investors in addition to lowering 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.
According to the department, 319 of the total service and maintenance fees for development projects have been approved for 2022.
“The total sum of these service charge budgets is approved as of December 31, 2022, amounting to Dh722.6 million,” the statement said.
In 2020, DMT launched a complete system to track and control residential unit service fees. The service fees were decreased by 8.3 percent in 2021 and by 18.1 percent in 2020, for a total savings of more than Dh200 million.
Eliminating service fees for owners of real estate units and investors in development projects will increase the appeal of real estate investment in the emirate, according to Dr. Adeeb Al Afifi, executive director of the real estate sector at DMT.
“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.
In 2022, there were 19,033 real estate transactions of Dh77.6 billion in the capital of the UAE. According to DMT statistics, the industry saw 9,010 sales transactions for Dh23.5 billion and 10,023 mortgage transactions worth Dh54.1 billion in 2022.
According to Evgeny Ratskevich, Chief Executive at Metropolitan Capital Real Estate, the Abu Dhabi real estate market has made a significant comeback in recent 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.