What are the hidden costs of buying property in Dubai? 

Buying property in Dubai can be an exciting opportunity, but there are often "hidden costs" beyond the initial purchase price that can catch you off guard. Here are some key things to be aware of:

Fees and Charges:

• DLD Fees: Expect to pay 4% of the property value to the Dubai Land Department (DLD), usually split between buyer and seller.
• Registration Fees: These vary depending on the property value, ranging from AED 2,000 to AED 4,000.
• Mortgage fees: Banks typically charge arrangement fees (1% of loan amount), property valuation fees, and life insurance (0.4-0.8% per annum).
• Agent fees: Real estate agents usually charge 2% of the purchase price + VAT.
• Conveyance fee: Expect to pay around AED 6,000 to AED 10,000 for legal documentation.
• DEWA registration fees: Pay a refundable security deposit and advance quarterly demand charges for utilities.

Other Expenses:

• No Objection Certificate (NOC): Developers might charge AED 500-5,000 for the NOC to clear outstanding dues.
• Maintenance and Service Fees: These can vary depending on the building and amenities, but typically range from 5-15% of annual rent.
• Parking fees: Not included in service charges, with prime locations having high costs.
• Homeowner Association fees (if applicable): Additional costs for specific communities.
• Security deposit (refundable): Varies by property.
• Cleaning and maintenance contracts: Optional but can add up depending on frequency and property size.

Additional Considerations:

• Property size discrepancy: Developers might deliver properties 5% smaller than advertised.
• Fluctuating market: Be aware of potential future market downturns impacting resale value.
• Visa requirements: Owning property can facilitate residency visas, but there are specific criteria and ongoing costs.

Remember, thorough research and budgeting are crucial before buying property in Dubai. Consulting with qualified professionals like real estate agents, lawyers, and financial advisors can help you navigate hidden costs and make informed decisions.