Dubai’s real estate market is one of the fastest growing, attracting investors from all across the globe. For the convenience of investors, the government takes multiple initiatives to ensure smooth property transactions. That said, the Dubai Land Department (DLD) has recently announced the privileges registry of Real Estate Investment Trusts (REIT).
The privileges registration is aimed at attracting more investments for real estate projects and strengthening Dubai’s position as a global investment hub. Let’s take a closer look at the REIT privileges registry by DLD and elaborate on what it brings to the table.
DLD Launches REIT Privileges Registry
The real estate investment trust privileges by DLD offer multiple benefits, encouraging trusts to invest in real estate projects across Dubai. The initiative aligns with the decree No. (22) of 2022 which allows the grant of privileges to the real estate trust.
Benefits for Real Estate Investment Trusts by DLD
The real estate trust privileges registered with DLD can leverage the following benefits.
- On the establishment of a real estate trust, trustees can benefit from the value of real estate fees. AED 50,000 is charged as a fee to transfer real estate ownership from the founder to the trust.
- If a trust acquires or registers any asset under its name, a 2% registration fee will be charged.
- If a trust registers long-term rental rights or usufruct, a 2% charge on market value will be offered.
- The above-mentioned charges are only applicable if the real estate disposal is of the trust’s property. The shareholders’ disposal of real estate is exempted from the charges.
Now that you are aware of the REIT privileges registry by DLD let’s move towards the registration process. However, if you are new to real estate investments, here are some tips for successful real estate investment.
How to Register RIET Privileges by DLD
To register RIET privileges with DLD, the trusts are required to cater to the following steps.
Process
The RIET privileges by DLD can be registered through the Real Estate Services Registration Trustees Centres.
- Step 1: Visit ‘Real Estate Services Registration Trustees Centers’
- Step 2: Submit all the required documents (mentioned below)
- Step 3: The employee will enter and verify all the transactional data
- Step 4: Pay the fee
- Step 5: Receive the real estate ownership certificate through email
Documents Required
The following sets of documents are required for the REIT privileges registry by the Dubai Land Department.
- Commercial Licence issued in accordance with Decree No. 22 of 2022
- Real estate assets with a market value of more than AED 180 million.
- Copy of Emirates ID/passport of trust founder(s).
- Approved authorisation for the individual authorised to follow up on transaction-related funds.
- Dubai Financial Services Authority (DFSA) approved fund manager.
- An incorporation contract showcasing total shareholders and the value of their shares.
Service Terms & Conditions
Mentioned below are the terms and conditions for the REIT privileges registry with DLD.
- The names of real estate asset owners and the founders’ names mentioned in the licence should be identical.
- The assets must be evaluated as per the DLD valuation certificate. The certificate should not be older than 6 months.
- The person authorised to continue transactions should have an approved decision from the board of directors or official power of attorney.
- Names of founders and their share value should be listed in the Fund’s Memorandum of Association.
- The fund can be removed from the register due to multiple reasons including loss of incorporation conditions, declaring bankruptcy, liquidation of assets and others.
Fees to Register Privileges with DLD
To register RIET privileges with DLD, trusts have to pay the following charges.
- Registration fee of AED 10,000
- Flat fees of AED 50,000/ real estate project added at the time of incorporation
- On the purchase of real estate, 2% is charged in the trust’s name during the period
- On the sales of properties, 4% of the property’s market value will be charged
- On the registration of usufruct right or long-term lease right, 2% of the property’s market value will be charged
- On waiving the right to usufruct or the right of a long-term lease, 4% of the property’s market value will be charged.
FAQs
How can I register REIT privileges to DLD?
REIT privileges can be registered through Real Estate Services Registration Trustees Centers present at different locations in the Emirate.
What is the registration fee for REIT privileges?
The registration fee for REIT privileges is AED 10,000.
How can I pay the fee for REIT privileges registration?
The REIT privileges registration fee can be paid through bank cheque, credit card or M69ePay Smart Payment.
This was all about the REIT privileges registry by DLD. Privilege registration is aimed at smoothing property transactions and facilitating investors. That said, if you are also looking to invest in Dubai’s real estate market, browse through these properties for sale in Dubai and choose an ideal property for investment.
Besides, here are some Dubai’s real estate investment strategies that can aid in increasing returns on the investment.
Stay tuned to dubizzle’s property blog for more information on privilege services by DLD.
