No fee hike for Dubai property registration

Land Department issues strong statement against rumours that charges will be raised

The Dubai Land Department has put to rest all speculation that moves were afoot to raise the property registration charges from the current 4 per cent. It was in September 2013 that the charges were doubled and which have been in effect since.

The move, along with other regulatory push, had a seminal impact on transaction activity in the market since the second quarter of 2014. In a statement issued yesterday, the Land Department noted that it does not plan to raise charges in the ‘near future’.

The government entity also confirmed a deadline extension for developers and investors to register their units with the Dubai Land Registry by the end of October.

“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,” said Sultan Butti Bin Mejren, Director-General.

‘Unfounded talk’

“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.”

The marketplace has been swirling with rumours; those related to increases were most likely set off by sellers in the secondary market looking to get prospective buyers to seal the deal now rather than wait.

The Land Department statement also noted that decisions to increase the various fees relating to real estate are issued by Dubai Executive Council.