Dubai’s property market continues to show remarkable momentum. As of 2025, the city is welcoming approximately 470 new residents every day, driving sustained demand for ready homes. Developers are working to keep pace, with an estimated 40,000 new units scheduled for delivery by year-end.
Increased demand in the off-plan market means property developers are regularly looking at ways to make their projects stand out. The city’s real estate market is incredibly robust, with new projects launching almost weekly. As buyers are presented with a wider range of options, developers have, for some time, been turning to incentives such as covering the 4% Dubai Land Department fee to enhance the financial appeal of their offerings. This can be particularly compelling for first-time buyers who may otherwise be hesitant. Read on to uncover everything you need to know about the DLD waiver – how it works, who it benefits, and things to watch out for.
Understanding the Basics: What is the DLD Waiver?
Quite simply, a DLD waiver is when a developer pays the 4% DLD fee instead of the buyer – an incentive used by companies to make a project more attractive, typically for off-plan (under construction) projects.
In Dubai, a property registration fee of 4% is charged by the Dubai Land Department (DLD), which covers the administrative costs involved in transferring a property. Of course, this can quickly add up, especially if someone is purchasing a super-prime property; a home worth AED 10 million, for example, would command a DLD fee of AED 400,000. As a result, some developers offer to take care of this fee directly, limiting initial costs and freeing up capital.
Historically, mortgage lenders were legally allowed to include the 4% fee within the loan agreement, but as of February 2025, this is no longer legally permitted, which means buyers must now pay both the deposit and the 4% DLD fee up front. This means a DLD waiver has once again become a very attractive proposition for potential buyers.
In some cases, developers may offer to pay the entire 4% fee, covering 100% of the costs, while some companies will only offer to pay up to 50%, so it is important to establish what percentage is being offered from the beginning.
Eligibility
Eligibility for a DLD waiver is determined entirely by the project and developer in question. Developers decide which units or projects qualify for the waiver, typically based on specific criteria that buyers must meet to benefit from the incentive.
Companies will often run official DLD waiver promotions as part of their broader sales strategy. This may be motivated by a variety of factors, such as ensuring that all units are sold prior to project completion.
In some cases, developers provide a DLD waiver for buyers purchasing off-plan directly from them, while others tie the incentive to completion within a specified timeframe. Additionally, certain promotions may require a minimum down payment to qualify for the waiver.
Benefits for Developer and Buyer
Offering a DLD waiver can be advantageous for both developers and buyers. Developers frequently face competitive pressure from other projects within the market, creating the need to move inventory quickly. In master-planned communities, units are typically released in structured phases, so advance sales can support both budgeting and future expansion strategies. Additionally, early sales generate early capital – a critical factor that can help cover unforeseen development costs and maintain project momentum.
Naturally, the benefits for buyers are just as clear. Saving 4% on the initial outlay is usually a welcome advantage. Lower upfront costs ease the financial burden, allowing funds to be redirected towards payment plan instalments or other associated expenses that arise during the purchase process or upon completion, such as furnishing the property. Moreover, reducing the initial expenditure can enhance long-term returns, particularly for investors.
Things to Consider
While a DLD waiver can offer considerable savings, like with any significant purchase, buyers should remain vigilant. It’s essential to ensure the waiver is clearly documented in the Sales and Purchase Agreement (SPA), including whether it is a full waiver 4%) or only for part of the fee, so any legal complications can be avoided further down the road. Potential owners should also be mindful of payment milestones, as missing them can void the waiver. For resale purposes, it should be noted that the waiver would only be applicable for the initial purchase and would not be transferable or repeatable if the property is sold before completion.
The DLD waiver remains a highly effective incentive for buyers of off-plan property. It also serves the interests of developers by helping to generate early capital and facilitating full sell-out prior to completion – both of which can significantly enhance profitability. While eligibility is determined solely by the developer, all terms should be clearly stated in the pre-sale agreement to ensure legal clarity. Ultimately, the DLD waiver is a valuable tool for those entering the market, as well as investors seeking to strategically expand their portfolios.
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