Sultan Butti Bin Mejren, the head of the Dubai Land Department said yesterday that emirate’s government was not going to increase real estate registration fee in the near future, despite all the idle speculations on this subject.
Dubai real estate registration fee was doubled in September 2013 from 2 to 4 per cent of the total property cost. And since then, rumors about further increases don’t cease in the emirate. However, Bin Mejren said that things are going well in the industry; Dubai housing market is moving towards sustainable growth, so there is no need for the further fee increases.
In 2013, the authorities decided to take this step and double registration fee in order to curb speculation in the housing market, and this measure was wise enough, the market started stabilizing.
“Through implementing this resolution, the Department succeeded in eliminating speculation that was challenging the market,” the DLD statement said.
Meanwhile, even after the increase, the size of the registration fee in Dubai is still less than in other 110 countries around the world.
Additionally, many of Dubai's developers are willing to pay the fee of 4% of the property value for their off plan property buyers. In particular, the offer is valid for Al Furjan property buyers from Azizi Developments, as well as for buyers of property in the Topaz Residences 3 residential community in Dubai Silicon Oasis from Gulf General Investment Company. Developers are hoping to attract new customers this way, since the choice of proposals in this segment today is extremely large.