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29 March 2024

No hike in property registration fees

General View of Dubai Government's Land Department premises in the emirate. shok Verma)

Published
By Parag Deulgaonkar

The Dubai Land Department (DLD) has ruled out any increase in property registration fees that are currently set at 4 per cent of the unit’s sale price.

 “A number of market players are talking about alleged reports that Dubai Land Department will be increasing real estate registration fees from 4 per cent to 8 per cent. This is a baseless rumour and only serves to encourage the return of speculation. It confuses buyers and needlessly compels them to speed up their purchasing decisions,” DLD Director-General Sultan Butti Bin Mejren said in a statement.

“We do not plan to raise the charges, which are collected from dealers to complete their real estate transactions in the near future,” he added.

The decision to increase the various fees relating to real estate are issued by Dubai Executive Council. The Council issued resolution No.(30) of 2013 to determine the value of real estate fees, including real estate registration charges which increase the real estate registration fees from 2 per cent to 4 per cent. 

Through implementing this resolution, the department succeeded in eliminating speculation that was challenging the market. The decision was seen as being instrumental in preventing speculators reap quick profits and threatening the interests of investors and the market in general.

In spite of the tax increase, the fee still remains less than 110 real estate markets around the world.

As reported on June 25, 2015, by Emirates 24/7, the deadline for real estate developers and investors to register their properties in the Dubai Land Registry has been extended till October 31, 2015, from June 30, 2015. 

Read: Dubai property registration deadline extended to October 31

DLD chief advised those in the market with an interest in selling property to follow professional methods on a competitive basis when promoting their properties, such as focusing on price and quality. 

“The real estate market in Dubai is stable and is enjoying sustainable growth, meaning that there is no requirement to revisit the fees for various activities and servicing in the near future.”