HIDDEN COSTS TO CONSIDER WHEN BUYING PROPERTY IN DUBAI

Hidden Costs to Consider When Buying Property in Dubai

Hidden Costs to Consider When Buying Property in Dubai

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Buying a home or investing in property for sale in Dubai is an exciting journey. Dubai's real estate market is one of the most attractive in the world, offering a mix of modern architecture, high rental returns, and a luxurious lifestyle. However, while the city promises a lot, it’s important to be fully aware of the hidden costs that come with purchasing a property. These expenses often surprise first-time buyers and can significantly affect your budget.


At Apexskyline, we believe in helping clients make informed decisions. That’s why we’re breaking down all the hidden costs you need to consider when buying property in Dubai.

1. Dubai Land Department (DLD) Fees


What is DLD?


The Dubai Land Department is the government body that oversees all property transactions in the emirate. When you buy a property, you must pay a fee to register the property in your name.

How Much is It?


The standard DLD fee is 4% of the property value. This is a significant cost that buyers often overlook. For example, if your property costs AED 1 million, the DLD fee will be AED 40,000.

2. Real Estate Agent Commission


Why Do You Pay This?


If you're using a real estate agent to find property for sale in Dubai, you’ll need to pay them a commission for their services. Agents help you with property searches, negotiations, and paperwork.

How Much is It?


Typically, real estate agents charge 2% of the property price. In some cases, this fee might be negotiable, but it’s good to budget for it in advance.

3. Property Registration Fees


This fee is paid when your name is registered as the new owner of the property. While this is handled through the DLD, there is a separate admin cost.

How Much is It?


It usually ranges from AED 2,000 to AED 5,000, depending on the property value and registration center.

4. Service Charges and Maintenance Fees


What Are They?


When you buy an apartment or villa in a community, you are required to pay annual service charges. These fees cover the maintenance of shared spaces like lobbies, pools, gyms, and gardens.

How Much Can You Expect?


Service charges in Dubai vary depending on the location and facilities. On average, it ranges from AED 10 to AED 30 per square foot annually. For a 1,000 sq ft apartment, that could mean AED 10,000 to AED 30,000 per year.

5. Mortgage Costs (If Applicable)


Planning to Finance Your Property?


If you’re not buying with cash and need a mortgage, there are a few more costs to consider.

Key Mortgage-Related Fees:



  • Bank processing fee: Usually around 1% of the loan amount.

  • Valuation fee: AED 2,500 to AED 3,500 (one-time).

  • Mortgage registration fee: 0.25% of the loan amount, plus AED 290 admin fee.


6. Developer Fees (For Off-Plan Properties)


Buying Off-Plan?


If you’re buying from a developer, especially off-plan, you may face additional fees that aren’t always clearly mentioned.

Possible Costs:



  • Oqood fee: AED 5,250 (required to register off-plan sales with DLD).

  • NOC fee: AED 500 to AED 5,000, paid to the developer to issue a No Objection Certificate before transfer.


7. Move-In Charges


After You Buy


Before moving into your new home, you might need to pay move-in fees to the building management or community.

Examples:



  • Move-in deposit: AED 1,000 to AED 2,000 (usually refundable).

  • Activation charges for DEWA (Dubai Electricity and Water Authority): AED 2,000 for an apartment, AED 4,000 for a villa.


8. Property Insurance


Why You Need It


While not mandatory for all buyers, property insurance is a smart idea to protect your investment against damage or loss.

Cost Estimate


It can cost around AED 1,000 to AED 2,000 per year depending on the property type and coverage.

9. Interior Fit-Out and Furnishing


Making It Home


Unless you're buying a fully furnished property, you’ll likely want to spend on furniture, appliances, curtains, and maybe even some renovations.

Typical Spend


This varies greatly, but budget at least AED 20,000 to AED 50,000 for basic furnishing.

10. Ongoing Costs After Purchase


Don’t forget that owning a property comes with recurring costs. Even after the purchase, you will have:

  • Annual service charges

  • Utility bills

  • Maintenance and repairs

  • Municipality taxes (around 5% of annual rent if leasing it out)


These expenses are especially important if you plan to list the property as a property for rent in Dubai.

Final Thoughts


Buying property in Dubai offers excellent opportunities, whether you want a new home or an investment. But to avoid surprises, it's crucial to factor in all the hidden costs. At Apexskyline, we guide you through every step of the real estate process, ensuring transparency and peace of mind.

If you're ready to explore property for sale in Dubai or need advice on property for rent in Dubai, visit us at https://apexskyline.ae/. Our experienced team is here to help you make confident and informed decisions in Dubai’s real estate market.

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