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You Can Now Pay Dubai Land Department Fees In Installments

Dubai Land Department (DLD) is allowing Emirates NBD customers to pay DLD fees in installments without incurring charges for the privilege of doing so.

The agreement follows DLD’s discovery that around 38% of DLD’s fees were being paid by Emirates NBD customers, either through cheques or by credit cards.

“This advanced service enables customers to pay their fees using credit cards issued by the bank and to receive fee installments at a rate of 0%,” said Saad Abdulla Al Hammadi, Senior Director of Finance and Administrative Affairs at DLD.

“We also confirm that the bank does not impose any interest to its credit card holders, given that installment plans can be provided for a period longer than six months.”

Dubai Land Department (DLD) is the organisation responsible for regulating the real estate industry in Dubai. It includes the Real Estate Regulatory Agency (RERA), which sets price bands for rents in Dubai, and the Rental Dispute Centre (RDC), the judicial arm that mediates in disputes between landlords and tenants.

This latest move by DLD should be welcomed by investors, who have recently seen small drops in the overall value of property units in Dubai.

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Dubai Property Prices Are Down 2% Year On Year

The average selling price of a residential property in Dubai fell 2% year on year for the first quarter of 2018. That’s according to research by chartered surveyor and property consultant, Cavendish Maxwell.

The report noted that villas and townhouses traded at an average of around AED 2.7 million and apartment transactions averaged AED 1.2 million.

While prices declined across Dubai, there were variations between areas and types of property.

“Price movement in the last 12 months has varied not only between communities but also among different buildings within the same community, thus reflecting greater differentiation in how available properties are now trading,” the report noted.

“This differentiation is expected to continue as buyers have an increasing supply base to choose from and property fundamentals such as developer track record, proximity to social and public infrastructure, ease of access, maintenance, among other factors will drive price movement.”

The steepest declines in apartment prices were seen in JBR (-2.5%), while the biggest fall in villas/townhouses was in Jumeirah Islands (-3.0%).

Approximately 3,800 residential units were handed over across Dubai in Q1 2018, with more than 92% of the units being apartments. International City, Jumeirah Village Circle and Dubai Studio City each accounted for more than 250 handovers.

You can download a full copy of the report here.

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Here’s How You Can Save Up To 20% On Your Next Dubai Property

Looking to save a whole lot of money on your next property investment in Dubai? Obviously you are, so you should probably get yourself down to the Dubai Property Festival, which is set to be the largest property promotion event in the Middle East.

The event comes as the result of a partnership between the Real Estate Investment Management and Promotion Center, the investment arm of Dubai Land Department (DLD), and the International Property Show. It’ll take place at the Dubai World Trade Centre from April 9 to 11.

It will include a series of global activities aimed at attracting investment into the UAE’s real estate market. Offers on the lowest mortgage rates with a profit margin of 1.85% per annum will be available, as will discounts of up to 20% on certain projects.

And if you see a property you like, you’ll be able to place a down payment on the spot, because the event is authorised by the Real Estate Regulatory Agency (RERA).

“The festival will offer discounts and exclusive promotions for three days, with developers providing special rates, reasonable introductory payments, and lower registration fees. In order to offer all real estate services under one platform, free legal services and consultations will also be available, as well as a property auction and local deals through live auctions,” said Dawood Al Shezawi, Head of the Dubai Property Festival Organising Committee.

“In addition, the banks will be offering exclusive promotions including no registration fees or service charges, and customers can receive pre-approvals during the festival at discounted rates.”

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This JLT Tower Is On Track For A 2019 Completion

Planning to invest in Jumeirah Lakes Towers (JLT)? Well, the all-new MBL Residence tower, located in the heart of Dubai’s waterfront community in Cluster K, is on track for completion in 2019.

The tower will feature 472 one-, two- and three-bedroom apartments as well as a gym, steam room and sauna, outdoor swimming pool, leisure desk, and barbecue patio. There will also be 17 retail shops with a series of restaurants and cafés around the building.

MAG Lifestyle Development has completed all enabling works, such as shoring, piling and excavation. And construction is set to develop quickly thanks to MAG’s AED 260 million deal with Ali Mousa & Sons Contracting.

“In line with our meticulous approach to timely project delivery, we are pleased to have concluded enabling works at MBL Residence in less than six months,” Talal Moafaq Al Gaddah, CEO of MAG LD told Arabian Business.

The contractor has already completed 20% of the project since beginning in July and will be on track to complete the tower by the fourth quarter of 2019.

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Revealed: The Impact Of VAT On Dubai’s Real Estate Market

Are you a property owner? Well, here’s some good news for you. The Federal Tax Authority (FTA) and Dubai Land Department (DLD) have confirmed that the introduction of value-added tax (VAT) should have little effect on you.

The UAE tax system is designed to support the real estate sector in all its activities, the organisations said in a joint report.

They explained that the idea is to provide a suitable environment for real estate.

Indeed, for now, landlords or property owners aren’t even required to register with FTA. And the two organisations said that 85% of components in Dubai’s real estate sector are not subject to the 5% tax.

For example, here’s how the VAT rules work in relation to property in the UAE:

Bare land sales

These are exempt from VAT so long as the owner provides evidence that they are not being built on.

Residential buildings

Not taxable if they are sold or rented. This includes apartments, buildings, residential villas, housing for workers and students, accommodation for armed forces and police, homes for the elderly, orphans, and nursing homes.

Real estate transactions

This is related to residential buildings, including sales, rents, leaseholds and long-term leases, where the owner of the property will benefit from the zero rate.

Buying mixed-use buildings (residential and commercial buildings)

The residential part is exempt from tax according to its percentage of the building, while the commercial part will include tax.

Leased commercial properties

The rent and sale of commercial and industrial properties in the zones specified by the FTA are not considered a supply for VAT.

His Excellency Sultan Butti bin Mejren, Director General of Dubai Land Department, explained that, because of these rules, the vast majority of land and property owners in Dubai are largely unaffected by the introduction of VAT.

“When reviewing the details of sales, rents and other transactions, we found that the value of bare land sales, residential properties, and occupied commercial and retail properties comprise the largest percentage of total properties traded during 2017,” he said.

“This ratio is expected to remain over the coming years and even stands to increase with commercial offices continuing to improve their leasing operations and minimise empty units.”

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Video tour

The Consumer Financial Protection Bureau announced on Wednesday a proposal to delay the effective date of the TILA-RESPA Integrated Disclosure rule until Oct. 1.

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Real Estate Roundup!

May new home sales gain 2.2% from April

Sales of new single-family houses in May 2015 were at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. — From Housing Wire

3 ways to tame student loan debt and afford a mortgage

It’s no secret that student loans can make buying a home a challenge. But what exactly is the problem, and how can buyers overcome it? The problem is that student loans can be included in the buyer’s debt-to-income ratio, or DTI. — From Bankrate

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We’re ready for the TRID rules!

At 5 p.m. EST June 17, the Consumer Financial Protection Bureau issued a statement that the effective date for the TILA-RESPA Integrated Disclosure (TRID) rules would be pushed back to Oct. 1, 2015.

CFPB Director Richard Cordray said in a prepared statement: “The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until Oct. 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

Rainier Title has been working towards the TRID implementation for over a year and felt prepared for August 1st. However, with the proposed delay we will be taking this opportunity to continue our education and training of TRID. While we believe that we have been proactive and ready for this change, there are still so many unknowns that will have to be addressed at the time of implementation. The industry should still prepare for 45-60 days for transaction to close due to the new timing parameters of the forms.

We’re working hard to be ready for all changes!

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Real Estate Roundup

Active Home-Building Industry Will Lead to More Demand for Warehouse Space

Strong consumer spending and the rise in housing construction activity are currently the prime factors for the incredible rebound of the U.S. industrial real estate sector, and experts say as home buying continues to increase, so will demand for warehouse space. — From NRE Online

To Buy or Not to Buy: That Is the Developer’s Question

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