The Hidden Cost of Buying a Property in Dubai

 
  • The Hidden Cost of Buying a Property in Dubai


    Property buyers must factor fees that are not included in the net selling price when purchasing property in Dubai.  The Dubai Land Department(DLD) has several costs that must be paid to purchase property in Dubai. Listed are government costs for buying a property.

    •The Dubai Land Department charges 4% of the sales price as transfer fees plus a knowledge fee of AED 430 for a plot, AED 40 for off plan property and AED 580 for apartments and offices.

    •The DLD requires a Mortgage Registration Fee of 0.25% of the loan amount including AED 290.

    •A Registration Trustee Appointment fee must be paid in cash and cost AED 4,000 through title deed and 5,000 through off plan.

    •Property developers in Dubai charge a No Objection Certificate fee(NOC). The NOC fee ranges from AED 500-5000 depending on the property developer. Developers might handover a property 5% smaller than the listed size. For example, a property listed at 1,000 sq.ft will be 950 sq.ft upon delivery. Property developers charge a cash guarantee deposit of 10% of the selling price.

    The Dubai Electricity and Water Authority(DEWA) fees for newly transferred properties

    Apartment/Office - AED 2,000 refundable deposit + AED 100 reconnection charge (may vary depending on the no. of installed meter) + AED 30 knowledge/innovation fee

    Villa - AED 4,000 refundable deposit + AED 100 reconnection charge(may vary depending on the no. of installed meter)
    * Security deposit is refundable once property is sold 

     

    EMPOWER:

    Apartment - AED 2,000 refundable security deposit + roughly AED 500 advance quarterly demand charges
    Office - AED 4,000 refundable security deposit + roughly AED 500 advance quarterly demand charges
    Note: 
    * For primary owner a connection fee of AED 2,000 + admin fee of AED 1,000 should be paid on top of the security deposit
    * Security deposit is refundable once property is sold 
     

    ISTA (for Citywalk)

    Connection Fee - AED 200

    Refundable Security Deposit:

    • AED 1,500 (Studio/ 1 Bedroom)
    • AED 2,000 (2 BR)
    • AED 3,000 (3 BR)
    • AED 3,500 (4 BR)

     

    Fees related to the property transfer that are usually paid by the Buyer:

    DESCRIPTIONAMOUNTBENEFICIARY
    Transfer Fees4% of the selling price + AED 580 if apartment/office/villa, 430 AED if land, AED 40 if offplanDubai Land Department via manager's cheque
    Agency Fee2% of the selling price (may vary as per agreement with the buyer/seller)Broker
    Sales Progression (if applicable)AED 2,500 (if cash sale)Broker
    AED 4,000 (if finance sale)
    Registration Trustee FeeAED 4,000 (if selling price is more than AED 500,000)Cash
    AED 2,000 (if selling price is less than AED 500,000)
    Mortgage Registration Fee0.25% of loan amount + AED 290 (if finance buyer)Dubai Land Department
    No Objection CertificateNOC fees used to range between AED 500-5,000, but in Q4, 2021 these fees have been waived and not applicable anymore.-
    Refundable Security Deposit (if applicable)varies per DeveloperDeveloper

     

    Fees relating to property transfer that usually paid by the Seller:

    DESCRIPTIONAMOUNTBENEFICIARY
    Sales Progression (if applicable)AED 2,500 (if cash seller)Broker
    AED 4,000 (if finance seller)
    Mortgage Discharge Fee (if finance seller)AED 1,290 (if commercial bank)Dubai Land Department
    AED 1,560 (if Islamic Bank)
    Property Blocking Fee (applicable for Finance Seller to Cash/Finance BuyerAED 1,520Dubai Land Department
    Trustee Fees (applicable for property blocking & releasing seller's mortgage)AED 300Cash



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  •  jeddy   

    (0) (0)
    Nice post

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