Fee reductions in the UAE

According to the UAE Department of Municipalities and Transport for the period of 2022, property owners and investors have received a 6% reduction in service fees.

The amount that investors and real estate owners in Abu Dhabi have been able to save is over AED 37.2 million (USD 10.1 million).

According to the DMT in 2022, 319 expenditure and maintenance projects worth AED 722.6 million (USD 197 million) were approved.

Based on the statement made by the executive director of the DMT real estate sector, investment attractiveness in real estate in the UAE will grow due to lower service fees.

By increasing investment returns as well as reducing operating costs, owners will improve the efficiency of their property management. As a result, it will be cheaper to own a home while keeping costs competitive.

This event is one of the DMT’s initiatives to improve the quality of life for residents and citizens of Abu Dhabi.

Since 2020, a system has been applied to monitor and adjust the fees for the maintenance of premises. This comprehensive mechanism protects owners as well as developers, and establishes a basis for setting prices.

The decrease in service charge in 2020 was 18.1% and 8.3% in 2021. The total amount of the decrease (savings) reached over AED 200 million (USD 54 million).

Service fee funds are spent on maintaining the quality of common spaces, maintaining the cleanliness and safety of properties, and the long-running value of assets.

Property owners cannot waive their part of the common areas if they do not wish to pay their part of the service fee. There will also be no charge for operating, repairing or maintaining common areas without the DMT approval.