Muscat: The Ministry of Housing and Urban Planning has announced revisions to certain real estate service fees aimed at delivering greater value to beneficiaries, improving the investment climate in the real estate sector, and enhancing service efficiency.
These revisions, which affect 85 government services, involve the consolidation and simplification of fees for 47 services, the elimination of fees for 11 services, a reduction in fees for 8 services, and the introduction of 14 new services. This initiative is part of a broader commitment to ensure transparency in service pricing and application processes.
Key changes include:
- A reduction in registration fees for sales contracts to 1% from the previous 2% for Omani individuals and companies, effectively halving the costs associated with real estate ownership.
- A decrease in fees for selling real estate through Islamic banks to 0.5%, which will facilitate real estate financing that aligns with market demands.
- A cap on mortgage registration fees at 0.5%, providing more flexible financing options within the real estate sector.
This decision represents a strategic initiative by the Ministry to foster investment and bolster the business environment.
Additionally, the amendments allow for the recovery of fees paid for changes in business activity type. This measure takes into account the current circumstances of investors and aims to provide essential support, thereby enhancing their confidence in the investment landscape of the Sultanate of Oman.
The decision outlined adjustments to the pricing of land use permits, while simultaneously exempting agricultural lands that have transitioned to non-investment purposes from fees, provided these lands are included in detailed government plans.
Additionally, the decision revised the fees associated with the use of agricultural lands previously collected by the Ministry of Agriculture, Fisheries and Water Resources. This revision is applicable based on the regulations in effect at the time of payment.
To enhance service quality, the decision eliminated fees for certain e-government services, which will aid in promoting digital transformation and alleviating financial pressures on citizens.
Notably, the cancellation of fees for "agricultural land registration" is intended to bolster the agricultural sector and improve land utilization.
Furthermore, the decision abolishes "land allocation fees" for electronic auctions, thereby creating more opportunities for investors and real estate developers.
The decision also exempts specific groups from real estate ownership fees, including low-income individuals whose earnings do not exceed OMR300, persons with disabilities, beneficiaries of the Family Income Scheme, recipients of housing assistance, and retirees with a monthly income below OMR300.
Lastly, the decision established fees for the registration and documentation of real estate transactions, as well as transfer fees and requests for business ownership verification.
The decision also regulated the following:
- Registration fees for those licensed to practice the real estate brokerage profession.
- Real estate development services fees.
- Registration fees for those licensed to practice real estate pricing.
The decision also fixed fees for registering and documenting real estate transactions, transfer fees and ownership verification requests.
It also regulated the registration fees for other categories:
- Those licensed to practice the real estate brokerage profession.
- Real estate development services fees.
- Registration fees for those licensed to practice real estate valuation.
- Fixing fees for services provided to real estate owners’ associations.
- Fixing prices of contract forms, applications forms and maps issued by the Ministry.
The amendments will also contribute to raising the level of beneficiary satisfaction to 90%.
The Guide includes improving the clarity of fees structure and ease of carrying out procedures.
