Bin Mejren: Real estate market is stable - no plans to revisit fees in the near future
[Dubai - United Arab Emirates, 29 June 2015] – Dubai Land Department has confirmed that real estate registration fees that are currently set at 4% will not be increased. It has also stated that it does not plan to raise the charges, which are collected from dealers to complete their real estate transactions, in the near future.
The Department stressed that decisions 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.
HE Sultan Butti Bin Mejren, Director General of Dubai Land Department, discounted what he said were rumours relating to a real estate registration fee increase.
"A number of market players are talking about alleged reports that Dubai Land Department will be increasing real estate registration fees from 4% to 8%. 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," he said.
Bin Mejren 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. He also added that 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.
In September 2013, Dubai Land Department implemented Dubai Executive Council's resolution to increase the real estate registration fees from 2% to 4%. The charges are paid by the seller and the buyer equally unless otherwise agreed between the two parties. 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.
The real estate market and investors welcomed the decision for its positive effect in increasing the attractiveness of property investment in Dubai. In spite of the tax increase to 4%, it still remains less than 110 real estate markets around the world.
Bin Mejren also confirmed a deadline extension for real estate developers and investors to register their properties in the Dubai Land Registry up until the end of October 2015. He said that this would enable all parties to complete the registration requirements, which document their contracts and protects their rights.