Are you planning to buy a property in Dubai? Must know the extra hidden cost that comes out as transfer fees, agency fee, sales progression and lots more fees is involved, so know them deeply here.
It is not wrong to assume that you are interested in buying Dubai property and this has further pushed you to know about the hidden cost or call it the extra cost of living in a house in Dubai, so we are happy to say that you have landed at the right place because here we will be talking about the actual cost of buying property in Dubai which buyers are not aware in advance, and this leads to confusion and problems.
So it is better to educate yourself completely and then go for your final investment.
What will you Read Here?
| FEES PAID BY BUYERS | FEES PAID BY SELLER |
| Transfer Fees | Sales Progression |
| Agency Fee | Mortgage Discharge Fee |
| Sales Progression | Property Blocking Fee |
| Registration Trustee Fee | Trustee Fees |
| Mortgage Registration | -- |
| No Objection Certificate | -- |
| Refundable Security | -- |
This is an obvious fees which is considered compulsory in order to pay one time tax to the government and this fees is divided into both the buyer and seller, but the fee is entirely paid by buyer, and the fee is supposed to be paid within 60 days otherwise the purchase would be cancelled.
So make sure you are specific about the dates and days to avoid unwanted hurdle.
UNDERSTAND THE PAYMENT BIFURCATION BELOW
| 4% of the total selling price | Department Land Department Fees |
| AED 2,000+5% VAT if the property is | |
| less than AED 50,000 | |
| AED 4,000+5% VAT if the property is | Property Registration Fees |
| more than AED 50,000 | |
| 0.25% of the total loan | DLD Mortgage Registration Fees |
It is an obvious cost where you have to pay 2 per cent of your total value, and this percentage may vary, but 2% is the standard fee or commission, in addition to this, in case you hire conveyancer (A lawyer who specializes in the business of conveying properties) who take care of all your documents and ensure it is related to the laws of UAE, so they charge AED 6,000 to AED 10,000 depending on their experience and standard.
It is another fee if you buy property via bank loan, then mortgage fee is compulsory and this includes mortgage arrangement fees, valuation fees and mortgage processing fees, and the cost along with mortgage come out 5-7% of the selling price of the property.
| Bank Mortgage Arrangement Fees | 1% of the loan amount + 5% CAT |
| Valuation Fees | AED 2,500-AED 3,500+ 5% VAT |
This is if the seller has a mortgage registered, then the buyer needs to get a No Objection Certificate (NOC) and the charges for this is AED 500-AED 500, so keep this in mind and because later you might have to face the penalty, so better to pay attention on everything.
This is not mentioned above for the reason that it is not compulsory, so it is optional for you and in case you plan it then it gives you safety from theft, fires and accident. And in case you go for mortgage to purchase a home, life insurance is required, and the fee for it is:-
| Home Insurance | Around AED 1,000/annually |
| Life Insurance | 0.4-0.8% of the decreasing loan |
It is compulsory for the buyer to deposit a security and this is refundable after the property is transferred. It costs 10 per cent of your total selling price, this amount is collected by a RERA Registered broker, so your amount is completely secured and will be refunded at the right time.
These are annual maintenance expenses which are also known as service charges, so this is for the standard amenities that access such as elevator, swimming pool, gym and more.
The charges are paid to the Dubai Land Department and these are based on the RERA service and maintenance index as per the square foot.
So the above 7 points are essential to keep in mind so that you are familiar with each of them before finalizing your property in Dubai by the reputed builders such as EMAAR, Sobha, Nakheel and more.
NOW LET US TALK ABOUT FEES PAID BY SELLER RELATED TO PROPERTY TRANSFER, CHECK OUT THE DETAILS:-
After knowing about the hidden cost of buying a house in Dubai, you can move forward towards your investment decision and now to find out the best property option Dubai Housing is the trusted company that offers heaps of filtered properties to meet lucrative investment.
They ensure 100% assistance and complete guidance to have better experience and have a secured real estate investment in Dubai.
