The Dubai Land Development (DLD) launches a privileges registry for Real Estate Investment Trusts (REIT)

The Dubai Land Department (DLD) has launched a privileges registry for Real Estate Investment Trusts (REIT). It is possible for both local and international real estate trust companies to sign up.

Note: An REIT is a company that owns commercial property; for example, offices, apartments, hotels, and shopping centres.

This initiative will strengthen Dubai’s position as a real estate investment hub and further stimulate real estate investment trusts (REIT) to consider projects all over the city. This will increase market investment and long-term capital returns for shareholders.

For a company to get registered, they must meet the requirements listed on the DLD’s website and then apply at one of the approved Dubai Land Development real estate registration centres. Registered trusts will receive the following:

  • benefit from the cost of real estate fees upon the creation of a real estate trust where a fee of AED 50K (USD 13.6K) is charged in exchange for the transfer of the founder’s ownership rights of each acquired property to the trust;
  • if the trust buys an asset and registers it in its own name, then a 2 % registration fee is charged;
  • if the trust registers a right of use or long-term lease, then a fee of 2 % of the market value is levied;
  • the aforementioned fees are imposed only if the sale of the property is related to property held by the trust, and does not apply
  • to the sale of shares in the property by the shareholders.

Important! The minimum real estate investment amount is AED 180M (USD 49M).

After receiving approval by the Real Estate Trusts Committee, formed under Decree No. 22 of 2022, registered trusts will be able to:

  • own property outside of non-citizen ownership zones;
  • hold unrestricted absolute ownership of the property to use it as they so choose or to lease it for up to 99 years.

Want to get a free consultation?