Proptech and Real Estate news.

The real estate investment trusts (REIT) privileges registry launched in Dubai

2023-07-05 18:01 Developers
Dubai Land Department (DLD), through the real estate development sector, has launched the real estate investment trusts (REIT) privileges registry, and announced the opening of registration in it. Following design and development of the online platform and the training the service centers to receive applications, local and international real estate investment trusts are now ready to be processed.
Registration for local and international real estate investment trusts is now open after the design and development of an online platform and the training of service centers to receive applications. Trusts that meet the necessary conditions can visit one of DLD's approved real estate registration centers and fulfill the registration requirements, which are available on the Dubai Land Department's website. This streamlined process will be the standard method moving forward.

Registered trusts will gain several notable advantages, including the ability to benefit from real estate fees when establishing a real estate trust. A fee of 50,000 AED will be collected for transferring the founder's ownership of each real estate asset to the trust. Additionally, a 2% registration fee will be levied when the trust acquires and registers an asset in its name. If the trust registers a usufruct or long-term rental right, it will also benefit from a 2% charge based on the market value. It's important to note that these fees are only applicable to real estate disposals related to the trust's assets and not to shareholders' individual real estate shares.
“The privileges associated with the real estate investment trust (REIT) register is a new path in the emirate’s journey towards a more prepared future, by raising attractiveness for local and foreign real estate investments, in line with the visions and directives of our wise leadership, represented by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. 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.”
His Excellency Sultan Butti bin Mejren, Director General of the Dubai Land Department
Moreover, trusts registered in the concession register will have the right to own property located outside areas of non-citizen ownership. The Real Estate Trusts Committee, formed in accordance with 2022 Decree No. 22, will grant trusts unrestricted absolute ownership of such properties, allowing them to benefit from or lease them for a period of up to 99 years, subject to approval.

Dubai Land Department's continuous efforts to empower the real estate community through streamlined services, comprehensive legislation, reliable data, strategic partnerships, and cutting-edge digital infrastructure demonstrate its commitment to achieving global leadership in real estate investment. By fostering collaboration and integration between the public and private sectors, DLD contributes to the emirate's strategic vision, enhances the sector's readiness and sustainability, and solidifies Dubai's status as a premier destination for real estate investment.

With the launch of the real estate investment trusts (REIT) privileges registry, Dubai is set to attract increased investment and facilitate the growth of the real estate sector. The incentives provided to registered trusts, such as favorable fees and property ownership rights, will undoubtedly contribute to making Dubai an even more attractive destination for local and international investors alike. As the emirate continues to prioritize innovation and efficiency in its real estate services, it is poised to maintain its position as a leading global center for real estate investment.
Source