The costs of buying in Dubai, the real estate landscape in the UAE, particularly in Dubai, has undergone significant evolution and expansion over the years. The city has witnessed remarkable growth, attracting a constant stream of individuals seeking to embark on a new life chapter. It has become a magnet for investors, offering a vast range of choices between off-plan (under construction) and turnkey properties.
Furthermore, in addition to the purchase price of the property, there are several ancillary expenses that necessitate careful consideration before making the crucial decision to invest in this dynamic market.
Agent Fees
It is highly advisable to engage the services of a well-established and reputable real estate agency when buying in Dubai. These agencies possess a wealth of expertise and an extensive network that can greatly facilitate the search for a property that aligns perfectly with your requirements.
Typically, agency fees amount to 2% of the purchase price, plus Value Added Tax (VAT).
Conveyance fees
A lawyer will expertly navigate the entire process, addressing every legal and administrative need. You’ll stay well-informed at every stage of the journey. While this invaluable service may come with a price tag starting at AED 5000, it guarantees a meticulous examination of all aspects. In turn, paving the way for a seamlessly smooth purchase.
Mortgage Fees
When acquiring your property through bank financing or a mortgage, it’s important to be aware of the associated costs:
- Arrangement Fee: 1% of the loan amount plus 5% VAT
- Property Valuation Fee: Varies between AED 2,500 and AED 3,500, plus 5% VAT.
Government Fees
You must register all property sales in Dubai with the Dubai Land Department (DLD). The charge will be as follows:
As DLD Fees are mandatory, the buyer is also required to pay the registration fee for the property.
These fees are dependent on the property value.
DLD Fees = 4% of the property price + Admin fees (AED 580 for apartments and offices, AED 430 for land, AED 40 for off-plan)
Registration Fees for properties valued below AED 500,000 = AED 2000 + 5% VAT
Registration Fees for properties valued above AED 500,000 = AED 4000 + 5% VAT
DLD fees need to be paid within 60 days of purchases otherwise purchases can be cancelled.
Looking to rent in Dubai? Read our blog to help get your head around the costs.
Links to help :
https://www.bayut.com/
https://www.propertyfinder.ae/