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The Real Cost of Owning a Property in Dubai

23-05-2018

Property buyers must factor fees that are not included in the net selling price when purchasing property in Dubai.  The Dubai Land Department(DLD) has several costs that must be paid to purchase property in Dubai. Listed are government costs for buying a property.

•The Dubai Land Department charges 4% of the sales price as transfer fees plus a knowledge fee of AED 430 for a plot, AED 40 for off plan property and AED 580 for apartments and offices.

•The DLD requires a Mortgage Registration Fee of 0.25% of the loan amount including AED 290.

•A Registration Trustee Appointment fee must be paid in cash and cost AED 4,000 through title deed and 5,000 through off plan.

•Property developers in Dubai charge a No Objection Certificate fee(NOC). The NOC fee ranges from AED 500-5000 depending on the property developer. Developers might handover a property 5% smaller than the listed size. For example, a property listed at 1,000 sq.ft will be 950 sq.ft upon delivery. Property developers charge a cash guarantee deposit of 10% of the selling price.

The Dubai Electricity and Water Authority(DEWA) fees for newly transferred properties

Apartment/Office - AED 2,000 refundable deposit + AED 100 reconnection charge (may vary depending on the no. of installed meter) + AED 30 knowledge/innovation fee

Villa - AED 4,000 refundable deposit + AED 100 reconnection charge(may vary depending on the no. of installed meter)
* Security deposit is refundable once property is sold 

 

EMPOWER:

Apartment - AED 2,000 refundable security deposit + roughly AED 500 advance quarterly demand charges
Office - AED 4,000 refundable security deposit + roughly AED 500 advance quarterly demand charges
Note: 
* For primary owner a connection fee of AED 2,000 + admin fee of AED 1,000 should be paid on top of the security deposit
Security deposit is refundable once property is sold 
 

ISTA (for Citywalk)

Connection Fee - AED 200

Refundable Security Deposit:

  • AED 1,500 (Studio/ 1 Bedroom)
  •     AED 2,000 (2 BR)
  •     AED 3,000 (3 BR)
  •     AED 3,500 (4 BR)
 

Fees related to the property transfer that are usually paid by the Buyer:

DESCRIPTION AMOUNT BENEFICIARY
Transfer Fees 4% of the selling price + AED 580 if apartment/office/villa, AED if land, AED 40 if offplan Dubai Land Department via manager's cheque
Agency Fee 2% of the selling price (may vary as per agreement with the buyer/seller) Broker

Sales Progression (if applicable)

AED 2,500 (if cash sale)

Broker

AED 4,000 (if finance sale)

Registration Trustee Fee

AED 4,000 (if selling price is more than AED 500,000)

Cash

AED 2,000 (if selling price is less than AED 500,000)
Mortgage Registration Fee 0.25% of loan amount + AED 290 (if finance buyer) Dubai Land Department
No Objection Certificate varies per Developer Developer
Refundable Security Deposit (if applicable) varies per Developer Developer

 

Fees relating to property transfer that usually paid by the Seller:

DESCRIPTION AMOUNT BENEFICIARY

Sales Progression (if applicable)

AED 2,500 (if cash seller)

Broker

AED 4,000 (if finance seller)

Mortgage Discharge Fee (if finance seller)

AED 1,290 (if commercial bank)

Dubai Land Department

AED 1,560 (if Islamic Bank)
Property Blocking Fee (applicable for Finance Seller to Cash/Finance Buyer AED 1,520 Dubai Land Department
Trustee Fees (applicable for property blocking & releasing seller's mortgage) AED 300 Cash



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