The Hidden Cost of Buying a Property in Dubai
When purchasing property in Dubai, purchasers must consider costs that are not included in the net selling price. Several fees must be paid to the Dubai Land Department (DLD) in order to purchase property in Dubai. The costs of purchasing a home from the government are listed below.
•Transfer fees are 4% of the sales price plus a knowledge fee of AED 430 for a plot, AED 40 for off-plan property, and AED 580 for apartments and offices, according to the Dubai Land Department.
•A Mortgage Registration Charge of 0.25 percent of the loan amount, plus AED 290, is required by the DLD.
•A Registration Trustee Appointment fee of AED 4,000 by title deed and 5,000 by off plan must be paid in cash.
•In Dubai, property developers demand a fee for a No Objection Certificate (NOC). Depending on the property developer, the NOC price might range from AED 500 to AED 5000. Developers may deliver a property that is 5% smaller than the advertised size. A home listed at 1,000 square feet, for example, will be delivered at 950 square feet. A cash guarantee deposit of 10% of the selling price is required by property developers.
The Dubai Electricity and Water Authority(DEWA) fees for newly transferred properties
Apartment/Office- AED 2,000 refundable deposit + AED 100 reconnection fee (varies depending on the number of meters installed) + AED 30 knowledge/innovation fee
Villa – AED 4,000 refundable deposit + AED 100 reconnection fee (depending on the number of installed meters)
* Security deposit is refundable once the property is sold.
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.
* 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)