(MENAFN- Khaleej Times) The Dubai Land Department, or DLD, on Monday ruled out any plan to double real estate registration fees and its director-general said the market is stable so there is no need to revisit the fees.
The DLD confirmed that real estate registration fees that are currently set at four per cent would not be increased. It also stated that there is no plan to raise the charges, which are collected from dealers to complete their real estate transactions, in the near future.Dubai Land Department
Sultan Butti bin Mejren, director-general of the DLD, discounted what he said were rumours related to a real estate registration fee increase.
"A number of market players are talking about alleged reports that the DLD will be increasing real estate registration fees from four per cent to eight 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," he said.
In September 2013, Dubai announced that it would double the registration fee charged on real estate transactions to four per cent to prevent excessive speculation.
The DLD stressed that decisions to increase the various fees relating to real estate are issued by the Dubai Executive Council. The council issued resolution No. (30) of 2013 to determine the value of real estate fees, including real estate registration charges.
Through implementing this resolution, the department said it 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 to four per cent, 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.
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.
- abdulbasit@khaleejtimes.com
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