By Staff writer
Dubai Land Department boss says real estate registration fees will remain at 4%; says reports of rise to 8% are 'baseless'
Dubai Land Department on Monday rejected rumours that it is planning to increase real estate registration fees which are currently fixed at 4 percent.
The authority also said in a statement that it does not plan to raise the charges in the near future.
Dubai announced in September 2013 that it would double the registration fee charged on real estate transactions to 4 percent to prevent excessive speculation.
Sultan Butti Bin Mejren, director general of Dubai Land Department, dismissed 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 percent to 8 percent.
"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.
He 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.
The decision to increase the fees in September 2013 was seen as being instrumental in preventing speculators reap quick profits and threatening the interests of investors and the market in general.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Reducing these fees might help to stabilize the market at current levels. Global economic headwinds are growing since the Chinese stock market crash over the past month. Raising transaction costs would be suicidal.