Dubai rental registration fees will not be raised
Contrary to the market "rumour, (which) only serves to encourage the return of speculation", real estate registration fees in Dubai will not be increased, Dubai Land Department chief confirms
Dubai Land Department confirmed in a statement that real estate registration fees, currently set at 4%, will not be increased in the near future, and that it does not plan to raise the charges, which are collected from dealers to complete their real estate transactions.
The department stressed that decisions to increase the various fees relating to real estate are issued by Dubai Executive Council.
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," Bin Mejren said.
"It confuses buyers and needlessly compels them to speed up their purchasing decisions," he added.
Bin Mejren advised those in the market with an interest in selling property to follow professional methods on a competitive basiswhen 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 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.
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, where despite the increase to 4%, registration tax 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.