DIFC property
registration fee from 3.5% to 5% www.dubaibusinesskey.com
The Dubai International
Financial Centre (DIFC) Authority has hiked freehold transfer fee for
properties from 3.5 per cent to 5 per cent from April 1.
The moves aims to address the
International Monetary Fund's concerns about overinflated markets and endeavour
to secure the long-term stability of the DIFC property market, the authority
said in a statement.
In fact, a consultation paper No1 of
2014 was released earlier in which the DIFC Authority proposed amendments to
its real property regulations relating to an increase of its freehold transfer
fee.
The original proposal was to increase to 6 per cent,
but was later revised to 5 per cent following investor comments.
The amendment to the real property
regulations came into effect April 1, 2014.
"Though it's a limited market, the move will
still discourage people from buying and selling too quickly and also help DIFC
generate more revenue.
This website reported in October 2013
that DIFC was seeking investment worth Dh15 billion through joint ventures to
develop its remaining 10 million square feet land bank.
We have 110 acres in our master plan, of
which 25 million square feet has development potential.
We have already built 15 million square
feet and now we are building the remaining 10 million square feet, which will
need investment of nearly Dh15 billion," Brett Schafer, CEO, DIFC
Properties.
Of the 10 million square feet, 60 per
cent of the land will be dedicated to offices, 25 per cent for residential and
remaining 15 per cent for retail.
DIFC works as a separate entity with its
own property laws and regulations.
The Dubai Land Department, whose laws
and regulations govern rest of the emirate, increased its property transfer fee
in October 2013 to 4 per cent from 2 per cent with the aim to curb speculative
activity in the market.
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