What are the costs involved in buying property in Dubai?

When buying property in Dubai, be prepared for several costs beyond the advertised purchase price. Here's a breakdown of the key expenses to factor in:

Government Fees:

• Dubai Land Department (DLD) Fees: 4% of the purchase price, plus AED 580 for apartments/offices, AED 430 for land, or AED 40 for off-plan properties.
• Property Registration Fee: AED 2,000 + 5% VAT for properties below AED 500,000; AED 4,000 + 5% VAT for properties above AED 500,000.
• Mortgage Registration Fee (if applicable): 0.25% of the loan amount + AED 290.

Additional Costs:

• Real Estate Agent Fee: Typically 2% of the purchase price + 5% VAT.
• Conveyance Fee: Approximately AED 6,000 to AED 10,000.
• Bank and Mortgage-Related Costs:
  • Bank Mortgage Arrangement Fee: 1% of the loan amount + 5% VAT.
  • Property Valuation Fee: Between AED 2,500 – AED 3,500 + 5% VAT.
  • Life Insurance for Mortgages: Approximately 0.4-0.8% per annum on the decreasing loan balance (mandatory for mortgage purchases).
• Utilities Connection and Deposits: Varies based on provider and property type.
• Maintenance Fees: Applicable for apartments and common areas.
  
  #DubaiLife #InvestmentProperty #FinancePlanning #PeaceOfMind #RealEstateMarket #ExpatLiving #HassleFreeBuying #FutureProof #DreamHomeGoals #DubaiPropertyBuyer