How Much Does It Cost To Buy A House In Dubai?

Complete Cost Of Buying A Home In Dubai 

According to the Property Monitor Analytical Service, in Jan 2022, the average cost of housing in Dubai was AED 1,575 (428.8$) per square meter or 34.4% Y-O-Y.

And premium housing prices rose by over 35% and 37.2% in the average price segment, and this was 15.7% Y-O-Y. 

Now let us get into the details to understand it way better which helps in your decision.

How Much Is Property In Dubai? 

APARTMENTS

PRICE BRACKET	Avg Price/$	Average Cost Sq.m/$
Up to $224,000	165,500	3,300
Luxury property from $ 1,200,000	3,800,000	32,000
All Real Estate	1,300,000	12,000

 

VILLAS

Price Segment	Average Cost of Villas/$	Average Cost Sq.m/$
Offers up to $336,000	271,700	2,200
From $ 1,200,000	4,800,000	58,000
All Real Estate Type	3,400,000	39,300

 

LAND

Price Segment	Average Cost of land plots/$	Average Cost Sq.m/$
Luxury property from $560,000	27,500,000	1,800
All land Plots	20,200,000	1,500

 

And to open a wider field of investment more than 53,000 new units will be commissioned in 2022-2023.

Let us give you more details based on the best areas to buy apartments in Dubai in 2022

APARTMENTS (Avg. Price Range)

AREA	PRICE
BUSINESS BAY	AED 1.1M
DOWNTOWN DUBAI	AED 2.4M
JUMEIRAH VILLAGE CIRCLE	AED 657k
DUBAI MARINA	AED 1.5M
DUBAI CREEK HARBOUR	AED  1.9M
ARJAN	AED 617.9k
PALM JUMEIRAH	AED 2.9M
SOBHA HARTLAND	AED 1.2M
AL FURJAN	AED 627.3K

 

VILLAS (Avg. Price Range)

AREA	PRICE
JABAL ALI FIRST	AED 2.4M
ARABIAN RANCHES iii	AED 2.7M
MADINAT AL MATAAR	AED 1.8M
VILLANOVA	AED 1.6M
AKOYA OXYGEN	AED 1.2M
DUBAI HILLS	AED 4.4M
TILAL AL GHAF	AED 4M
EMIRATES LIVING	AED 2.8M

 

PLOT (Avg. Price Range)

AREA	PRICE
AL FURJAN	AED 2.3M
JUMEIRAH PARK	AED 4.1M
AKOYA OXYGEN	AED 1.3M
ARABIAN RANCHES I	AED 5.8M
THE VILLA	AED 4M
JUMEIRAH VILLAGE TRIANGLE	AED 2.7M

 

So the above-mentioned data gives you a better picture of the current price of a home in Dubai where one can move further with the investment decision and plan for the property. Other than this, if the concern is to earn monthly rental, then 10,000 AED is a good amount to generate passive income, and this amount may vary depending on the location and type of property you opt for.

Now let us take you to the second concern- The Complete cost of buying a house in Dubai because other than the actual price of the property there is a hidden cost too which is important to be unveiled.

This is a mandatory fee that you need to pay to the Dubai Land Department (DLD).

• DLD fee is 4% of the property value
• Fees of AED 520 for issuing the Title Deed
• AED 4,200 admin fees to be to DLD

And as the property must be registered with the DLD within 60 days of the transaction and if it is not then the purchase will be counted invalid.  In theory, the 4% charges should be paid by both the buyer and the seller, though in reality, the buyer pays the entire fees to DLD.

When you buy an off-plan property in Dubai, the 4% cost of buying the property is applicable, so the buyer has to bear this fee in both cases be it ready property or off-plan.
 
Apart from the above cost, AED 5,250 along with 4% value for the issuance of an Oqood Certificate and is mandatory that showcases the property are registered under the name of the buyer in RERA. And 25% payment of the property should be paid in advance. 

1. Initial Deposit
  
For both ready and off plan property, the mortgage price needs to be paid by the buyer, and this initial deposit secures the purchasing rights in the name of the buyers.
 
2. Mortgage Fees 

• Fee for bank Mortgage Arrangement- 1% of the property’s loan amount + 5% VAT
• Fee for property Valuation- AED 2,500 to AED 3,500 + 5% VAT

Those who wish to cover the cost of buying property in Dubai need to pay the mentioned fee to the bank.
 
3. Service Fees

Apart from the above cost, according to the RERA Service Charge and Maintenance Index, buyers need to pay an amount of DLD for maintenance of the property, and fees are calculated as per the area of the property per square foot. 
 
The maintenance includes a community area, swimming pool, parks, security, water, lift, and more amenities that are accessible.
 
4. Insurance Fees 

Though it is not considered an important part of Dubai, still recommended for property buyers, it is basically in regards to any damage or loss due to any occurrence, natural disaster, or theft.

• Home and Contents Insurance- AED 1,000 
• Life Insurance- 0.4-0.8% per annum on the decreasing loan balance.

Considering the cost and extra expenses together, Dubai compared with 28 cities is cheaper that opens up a way for investors to be a part of the successful property where you are clear about the current price of Dubai and the complete cost including fees and other charges.
 
And for more lucidity on this and to find out the top range property options Dubai Housing will be a great support as it ensures 100% assistance and is committed to offer lucrative deal which is best in Dubai.