The Dubai Land Department (DLD) announced that from 6 October 2013 it is doubling the property registration fee to 4 per cent from the current 2 per cent. The new registration fee covers all property transactions in the emirate of Dubai except for the industrial sector, including warehouses.
DLD Director General Sultan Butti bin Mejren said: "The move is aimed to stop quick transactions (flipping) which are unhealthy for the market and result in sudden price increases. “The decision has come at the right time… the market has matured and investor confidence is growing. The move in not likely to have any negative impact."
Mejren pointed out that 110 countries in the world have higher property registration fees than Dubai, citing the Stamp Duty Land Tax (SDLT) in the United Kingdom from 0 to 15 percent, France 8 percent and India 7.3 percent.
As per the decree, the fee will be split 2 per cent each between the buyer and seller. Although the previous law did specify one per cent each for the seller and buyer, in practice the buyer always paid the two per cent. Mortgage registration fees remain same at 0.25 per cent of the mortgage value to encourage end-users.