The Dubai Land Department announced on 26th September 2013, that it would be doubling the property registration fee from the existing 2% to 4%. Sultan Butti bin Mejren, the Director General of Dubai Land Department made the announcement and said that the increase would come into effect from 6th October 2013.
So if you were to buy a property worth AED 1 Million, you would now be paying AED 40,000 in property registration fees as compared to AED 20,000 before the increase.
See the following Table of Registration Fees as provided by the Dubai Land Department.
This increase in property registration fees is applicable for all secondary market property transactions and does not include the initial sale of property from the developer to the buyer.
This regulatory move is aimed at reducing speculative buying and selling of property in Dubai, which was the major contributor to the real estate market crash of 2008.
With this move, Dubai is inching closer towards being a more stable real estate market. The more mature property markets in the world operate under a significantly higher registration fee environment of around 5% going up to 7-8%
Legally, both the buyer and seller are expected to contribute equally towards the payment of the property registration fees but it is common practice in Dubai to have the buyer pay the full fees from his own pocket.
Serious buyers and end-users will feel the pinch as they bear the burden of an additional cost of buying a property in Dubai.