Abu Dhabi Real Estate Centre (Adrec) announced a 6% reduction in service and community charges on jointly owned properties last year, providing owners and investors with savings of AED 39.7M ($10.81M).
This initiative aims to enhance the attractiveness of real estate investments in Abu Dhabi, streamline property management, and offer competitive pricing for homeowners, according to Adrec, a part of the Department of Municipalities and Transport.
The UAE’s property market, including both Dubai and Abu Dhabi, witnessed increased transaction volumes, with Abu Dhabi recording 10,557 real estate transactions worth AED 46.33B in the first half of the previous year. The market’s strength is attributed to government initiatives, such as residency permits for retired and remote workers, and overall economic growth.
Dubai, reporting 116 new property transactions worth AED 429.6B in the first nine months of last year, also experienced significant growth. Analysts predict continued favourable conditions for the UAE’s real estate sector, driven by expanding non-oil sectors and a positive economic outlook.
Abu Dhabi’s proactive approach to lowering charges has contributed to ongoing investor incentives, achieving higher yields, and maintaining fixed rental rates, according to The National News.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, highlighted the impact of these reductions on supporting investors and reducing costs for owner-occupiers. Adrec noted a consistent reduction trend, with service charge decreases of 18.1% in 2020, 8.3% in 2021, and over 6% in 2022.
