DLD Property Gifting Valuation in Dubai: A Complete Guide to Rules, Costs, and Compliance

Transferring property as a gift in Dubai & Abu Dhabi is a common and often generous act, especially among family members. However, it involves more than just goodwill and signatures. The Dubai Land Department (DLD) has established a robust legal and procedural framework to regulate property gifting. This framework ensures transparency, fair valuation, and compliance with real estate laws.

Every gifted property must undergo an official DLD property valuation to determine the applicable transfer fee and to mitigate risks like market manipulation or underreporting of value.

This complete guide unpacks the DLD’s property gifting rules, DLD real estate valuation, costs, required documentation, and practical considerations to help you understand the process smoothly, efficiently, and in full legal compliance with Dubai’s property laws.

DLD Requirements for Property Gifting

Gifting property in Dubai & Abu Dhabi is primarily restricted to transfers between first-degree relatives, such as parents, children, and spouses, or between an individual and a company they fully own. Here's what you need to know about eligibility and documentation:

1. Eligibility and Documentation:

To initiate a property gift transfer, the donor must provide:

- Original Title Deed:

Proof of the donor's ownership of the property, issued by the DLD.

- Gift Transfer Application (Hiba):

A legal application completed at the DLD, formalizing the intent to transfer the property as a gift, including full details of the donor, recipient, and the property.

- No Objection Certificate (NOC):

Required if the property is in a leasehold or developer-controlled area, issued by the developer confirming there are no objections to the transfer.

- Valuation Certificate:

Issued by the DLD, this certificate provides the current market value of the property and is used to calculate the applicable gift transfer fee (0.125% of the value for first-degree relatives). This is integral to the DLD property gifting valuation process that ensures all transfers reflect accurate market values.

- Identification Documents:

Valid Emirates ID and passport copies of both the donor and recipient.

- Proof of Relationship:

Marriage or birth certificates proving first-degree relation. Documents issued outside the UAE must be translated into Arabic and attested by the UAE Ministry of Foreign Affairs.

- Power of Attorney (if applicable):

If either party is unable to be present, a notarized and UAE-attested Power of Attorney authorizing a representative to act on their behalf is required.

2. Valuation and Fees:

The DLD mandates an official DLD property gifting valuation to determine the property's market value, which forms the basis for calculating the transfer fee. For eligible recipients, the transfer fee is 0.125% of the property's value, subject to a minimum of AED 2,000. Additional fees may include title deed issuance and administrative charges.

3. Special Considerations:

Gifting property isn’t always straightforward. These scenarios require additional attention:

- Mortgaged Properties:

You must secure clearance from the lending bank. This may involve partial or full mortgage repayment or a transfer of the loan to the recipient.

- Off-plan Properties:

These can only be gifted if the developer issues an NOC and the property is not yet registered with the DLD.

- One-Time Gifting Rule:

Typically, a property can be gifted only once. Subsequent transfers are treated as regular sales and are subject to the full 4% transfer fee.

Note: Always check with the DLD for the most up-to-date rules, especially if the property is held under a corporate or trust structure. A trusted DLD-approved valuer can also provide insights on eligibility and property status before initiating the process.

Why a DLD-Compliant Valuation Is Mandatory

A Dubai Land Department (DLD)-compliant property valuation ensures that all property transfers are conducted with transparency, fairness, and adherence to regulatory standards.

1. Ensuring Accurate Transfer Fees:

The DLD mandates an official valuation to determine the property's current market value. This valuation forms the basis for calculating the transfer fee, which is set at 0.125% of the property's value for eligible gift transfers, with a minimum fee of AED 2,000. Without this valuation, the appropriate fee cannot be accurately assessed, potentially leading to legal complications.

2. Preventing Underreporting and Fraud:

An official valuation acts as a safeguard against the underreporting of property values, which could be used to evade taxes or manipulate market data. By requiring a standardized valuation, the DLD promotes integrity within the real estate sector and ensures that all transactions reflect true market conditions.

3. Facilitating Legal Compliance:

The valuation process is integral to the legal framework governing property transfers. It ensures that all parties involved have a clear understanding of the property's worth, thereby reducing the risk of disputes and ensuring that the transfer complies with all applicable laws and regulations.

4. Streamlining the Transfer Process:

Obtaining a DLD-compliant valuation is a prerequisite for the subsequent steps in the gifting process, including the submission of necessary documents and the finalization of the transfer at the DLD. This structured approach ensures that the entire process is efficient and that all legal requirements are met.

Valuation Process: What to Expect

1. Application Submission:

Initiate the process by submitting a real estate evaluation application through the DLD's online portal or visiting a Real Estate Services Trustee Center. The application should include:

- A completed evaluation application form.

- A letter from the property owner, along with copies of valid identification documents (passport and UAE ID).

- A recent copy of the municipality or planning map of the property.

2. Additional Documentation:

Depending on the property type, additional documents may be required:

- For residential villas:

details of the built-up area, number of units, and tenancy contracts.

- For hotel buildings:

financial statements for the past three years, hotel management contracts, and a tax letter from the municipality.

3. Evaluation Process:

Upon submission, the DLD reviews the application and may conduct an on-site inspection. The evaluation considers location, property condition, and market trends. Once assessed, the DLD issues an official valuation certificate stating the property's market value.

4. Fees:

The valuation fee varies based on the property type:

- Residential villas: AED 4,000.

- Hotel buildings: AED 15,000.

- Additional knowledge and innovation fees may apply.

How Archers Supports the Gifting Process

At Archers, recognized as accredited DLD-approved valuers, we simplify the property gifting process in Dubai & Abu Dhabi by delivering fast, accurate, and fully compliant valuation reports tailored to the Dubai Land Department's (DLD) requirements. Whether you're gifting to a family member or managing a trust, our expert team ensures your transaction proceeds smoothly, without delays or compliance issues.

Our RICS- and RERA-qualified valuers combine local market expertise with international standards to provide defensible valuations across all residential, commercial, land, and mixed-use asset types. We take into account every detail, from location and asset condition to recent market trends, to determine fair and accurate market value.

For individuals, we provide clear guidance and documentation to support estate planning, inheritance, or charitable giving. For trustee offices and legal advisors, our tailored services align with fiduciary obligations and estate strategies.

With Archers, you gain a reliable partner who understands the legal and emotional nuances of gifting. We offer clarity, confidence, and end-to-end support, so you can focus on what matters most. Contact us here for expert assistance in your gifting initiatives.