Abu Dhabi Real Estate Center reveals reduction in service and community charges for development projects in Abu Dhabi by 6% in 2023
Abu Dhabi: The Abu Dhabi Real Estate Centre (ADREC) disclosed a 6% drop in service and community charges for jointly owned property for owners and investors in Abu Dhabi’s real estate sector in 2023, amounting to a total reduction of 39.7 million dirhams compared to 2022.
The Center also disclosed that the total value of budgets for jointly owned property development projects that received approvals until the end of the fourth quarter of 2023 reached 685 million dirhams.
In 2020, the Abu Dhabi Department of Municipalities and Transport (DMT) introduced a fee monitoring system to regulate service and community charges, fostering sustainable growth in Abu Dhabi’s real estate sector. This framework safeguards the rights of both owners and developers by ensuring fair pricing.It resulted in service charge reductions by 18.1% in 2020, by 8.3% in 2021, and by over 6% in 2022.
ADREC indicated that the lowered fees incentivised investors and potential real estate buyers in Abu Dhabi. This initiative not only enhanced the attractiveness of real estate investments in the Emirate but also heightened the sector’s competitiveness. These reductions are anticipated to streamline property management, cut operational expenses, elevate returns on real estate investments, and uphold competitive pricing for homeowners in Abu Dhabi, both locally and regionally.
Service charges are used to cover the costs of managing and maintaining communal areas in property developments to sustain high living standards. Property owners must maintain their share of communal areas to avoid these fees, which require ADREC’s approval for imposition on joint property owners in Abu Dhabi under the Department of Municipalities and Transport.
ADREC’s efforts align with their broader initiatives to elevate the living standards and sustainability in residential compounds for all residents of Abu Dhabi, encompassing citizens and expatriates, aiming to enhance the overall quality of life in the Emirate.
About The Abu Dhabi Real Estate Centre (ADREC)
The Abu Dhabi Real Estate Centre (ADREC), launched by the Department of Municipalities and Transport in October 2023, aims to enhance Abu Dhabi’s position as a global real estate hub and increase the sector’s contribution to the non-oil economy. ADREC leads a significant transformation in Abu Dhabi’s real estate sector, centred around four key pillars: Real Estate Strategy, Real Estate Promotion, Real Estate Regulation, and Real Estate Transactions Management.
ADREC’s focus is on advancing the sector’s ecosystem while giving priority to the well-being of tenants, homeowners, developers, and investors. This involves streamlining processes and enhance regulatory frameworks, while utilising advanced technologies to provide sustainable and seamless services.
Collaborating closely with all stakeholders, the centre aims to elevate development standards and overall livability in Abu Dhabi.
Moreover, ADREC focuses on innovation, exploring groundbreaking technologies like blockchain transactions and Real Estate Investment Trusts (RIETs). This comprehensive approach highlights ADREC’s commitment to transparency, innovation, and collaboration, positioning Abu Dhabi as an attractive destination for tourists, developers, and residents alike.
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