The Dubai Land Department (DLD) has launched the real estate investment trust (REIT) privileges registry and is inviting regional and global REITs to sign up.
This effort intends to strengthen Dubai’s reputation as a major real estate investment hub and offer incentives to REITs to consider projects throughout the city, enhancing market investment and capital returns over the long run for shareholders. The introduction is in line with Dubai Economic Agenda D33, which emphasizes luring in foreign capital and increasing private sector participation in economic initiatives.
The most prominent advantages of real estate investment trust (REIT)
As of right now, trusts that satisfy the conditions can be registered in the “Register” by going to one of the DLD’s authorized real estate registration centers and satisfying all registration procedures, which are listed on the Dubai Land Department’s website. This will now be the accepted practice.
The registered trusts will gain various particular benefits as a result of this, the most prominent of which are:
- Gaining from the value of real estate fees in the event that a real estate trust is established, where a fee of Dh50,000 is charged in exchange for transferring the founder’s ownership of each real estate possessed to the trust.
- If the trust buys an asset and registers it in its name, there is a 2% registration charge.
- If the trust records a usufruct or long-term rental right, you will receive a 2% charge on the market value.
- The aforementioned fees are only paid if the sale of real estate is connected to any of the properties owned by the trust and not to the shareholders’ sales of their real estate shares.
After the Real Estate Trusts Committee, which will be established in the emirate in accordance with 2022 Decree No. 22, gives its approval, trusts registered in the concession register also have the right to own property outside of zones of non-citizen ownership. Real estate investment trusts may have unrestricted absolute ownership in it as well as benefit from or lease it for a time period not exceeding 99 years.
