Property transactions in the Dubai real estate sector are still growing as per data from the Dubai Land Department (DLD), which shows the transactions going up compared to the previous year. According to the DLD records made in the year 2023, more than 120,000 transactions in real estate amounted to more than AED 528 billion, which is an increase of 44%. The rapid expansion of DLD registration fees and payment stands as a reason for knowing everything regarding the same, either by the investors or by the real estate developers in Dubai.
Regardless of whether you wish to invest in off-plan projects in Dubai or buy ready properties, it would be best to know such fees so that you can make the whole transaction process smooth without any unexpected imbalance in costs.
DLD standard registration fee is 4% (or 8% if the buyer and seller do not agree otherwise) of the property’s sale value. It is equally applicable to sales as well as to long-term leases of all kinds of property in varying forms. The main purpose of real estate transactions is to cover these fees, which are built on some terms and conditions in the registration process to ensure that the process of registration process becomes structured and transparent.
Other fees may include the title deed issuance of AED 250 for apartments and villas. AED 100 for land plots outside Dubai Municipality's jurisdiction. AED 225 for unified maps with Dubai Municipality. Moreover, AED 250 for villas and apartments. Knowledge and innovation Fees are around AED 10 each per drawing.
For Real Estate Developers in Dubai registering new projects, a project registration fee of AED 150,020 is required, to be deposited in the Noqodi wallet. As this fee helps comply with the regulatory requirements of the DLD as well as facilitate the requirements of off-plan transactions, the fee is considered important.
Interesting to note is that though the 4% registration fee has remained unchanged since its adjustment in 2013, the DLD has confirmed that there are no plans to increase this soon.
In fact, there are many payment channels, and the Dubai Land Department provides accounts of convenience and security to the buyers, sellers, and developers to settle the fees. This will help the transaction process to be smooth, and at the same time prevent any delay.
Noqodi is a tool for digital wallet service that is secure and hassle-free. An online platform is designed whereby users can deposit, transfer, and make payments for different DLD services, including registration fees. Noqodi is often used by Real Estate Developers in Dubai to make all kinds of project registrations and mandatory payments.
The usage of Dubai Pay’s ePay system (subject to Dubai Pay and integrated with Dubai Pay) will enable users to pay the fees online via the Dubai REST app and DLD website (official). As such, this method offers an easy means to undertake transactions without leaving the office to go to the DLD offices. The system supports different payment methods and different payment methods such as debit cards and credit cards, which are convenient to local and international investors.
For instance, DLD (Dubai Land Department) is the only government entity whose Sadad Dubai bill paying and financial transactions are being processed on a single platform. Users can use the mobile applications, and if it’s accessible online, they can access the Sadad Dubai online bank. This platform works to provide a reliable and fast payment method, with which the processing time of the transaction is greatly decreased.
In DLD, credit card and debit card systems are used for local or international buyers' payment systems. Major Financial Institutions in Dubai fully support these transactions to process them without any hassles and securely. However, a buyer will need to verify whether their financial institution has limits or charges for high amounts when paying.
Paying DLD registration fees by a manager’s cheque is a commonly accepted method. The UAE banks issue this cheque and have funds that are guaranteed to go a long way in protecting the buyer and developers. The usual method is preferred for such larger transactions as the registration of multiple units or off-plan projects in Dubai, among other similar property transactions.
As part of the modernization and simplification of the registration process, DLD has implemented the possibility to pay through Apple Pay and Samsung Pay. Users can use their mobile devices to complete the transactions fast using these smart payment methods, reducing the processing time as well as improving user convenience. This is part of Dubai’s wider plan to become a fully digital government.
Being aware of all the applicable fees, including the standard 4% registration fee and other additional charges, would help you plan your finances accordingly without having to worry about any unexpected expenses.
Choosing the right payment method is better, e.g., Noqodi, ePay, or the manager’s check, to make the transaction easy. Although each method has its advantages, depending on where you find it most convenient, secure, and fast to process.
Penalties or complications in the transfer of property ownership may occur if payments are delayed.
Check That All Required Documents are complete. All required documents are to be completed and submitted to DLD, such as sales agreements, ID papers, financial proofs, etc.
Engaging with experienced Real Estate Developers in Dubai or consulting legal experts can provide valuable insights and assistance in navigating the registration process, especially when dealing with off-plan projects in Dubai.
Navigating the DLD registration fees and payment methods is a crucial aspect of investing in Dubai's real estate market. If you know the fee structures, understand how to use the right payment channels, and consider important factors before registration, transaction experiences will run smoothly.
If you need specialized assistance and help in your real estate venture in Dubai, then you can always seek guidance from FirstPoint Real Estate, your trusted real estate partner in Dubai.