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While commercial and residential towers seem to have taken up every inch of space in Abu Dhabi, new properties are causing rents and property prices to edge downwards — a trend that experts say will continue for some time. Image Credit: Ahmed Kutty/Gulf News archive

Abu Dhabi: Fraudulent real-estate transactions are set to become a thing of the past in the capital when municipal registration becomes mandatory for nearly all rental processes from next month.

The registration process known as Tawtheeq, aims to streamline property rents and leasing procedures.

"Tenants living in units rented by private landlords will have to submit Tawtheeq-registered tenancy contracts when paying water and electricity bills at the Abu Dhabi Distribution Company, or when applying for parking spaces near one's residence at the Department of Transport," said Ali Al Hashimi, manager of Tawtheeq at the municipality.

Since November 2011, tenants living in units held by property management companies in Abu Dhabi city have already had to submit these registered documents to avail of various services.

While nearly 205,000 leasable units in the capital are currently registered under Tawtheeq, many apartments and villas still remain unrecorded. Al Hashimi called upon tenants to insist on Tawtheeq-registered tenancy contracts when leasing a unit.

"Residence-related transactions at 16 other government entities require Tawtheeq registration for contracts, and more services will continue to be linked to the system over time," he added.

"We have given property owners time to adapt and sign up to the system. Even now, we will not issue fines for failing to register. Instead, residents can demand registered contracts, and of course it is in the best interests of a property management company, or landlord, to comply or risk being referred to the municipality," Al Hashimi said.