• Home
  • NEWS
Dubai Land Department launches REIT privileges registry

Dubai Land Department launches REIT privileges registry

Dubai Land Department (DLD) has introduced the REIT privileges registry, inviting local and international real estate investment trusts (REITs) to register.

This initiative aims to enhance Dubai’s global position as a real estate investment hub and provide incentive benefits to encourage REITs to consider projects across the city, thereby increasing market investment and long-term capital returns for shareholders. The launch aligns with the Dubai Economic Agenda D33, focusing on attracting foreign investments and boosting private sector involvement in development projects.

Trusts that meet the conditions can currently be registered in the” Register” by visiting one of the DLD’s approved real estate registration centres and fulfilling all registration requirements, which can be found on the Dubai Land Department’s website. This will be the standard method going forward.

The registered trusts will gain various particular benefits as a result of this, the most prominent of which are:
Benefiting from the value of real estate fees in the event of establishing a real estate trust, where a fee of Dh50,000 is collected in exchange for transferring the founder’s ownership of each real estate owned to the trust.
A 2 per cent registration fee is levied if the trust acquires and registers an asset in its name.
Benefit from a 2 per cent charge on the market value if the trust registers a usufruct or long-term rental right.
The previously indicated fees are collected solely if the real estate disposal is related to any of the trust’s real estate and not to the shareholders’ disposal of their real estate shares.
Furthermore, trusts registered in the concession register have the right to own property located outside of areas of non-citizen ownership after the approval of the Real Estate Trusts Committee, which will be formed in the emirate in accordance with 2022 Decree No. 22, Real estate investment trusts may have unrestricted absolute ownership in it, as well as benefit from or lease it for a period not exceeding 99 years.

“This move is in conjunction with the efforts made by the Dubai Land Department and its partners from the government and private sectors to translate and achieve the objectives of the Dubai Economic Agenda D33 for foreign investment and the raising of private sector investment in development projects,” said Sultan Butti bin Mejren, Director General of the Dubai Land Department.

Leave a Reply

Your email address will not be published. Required fields are marked *