If you're considering purchasing property in Dubai, it's crucial to understand the costs and fees associated with buying a home. Here's a simplified guide to help you navigate the typical expenses involved in buying real estate in Dubai.
Transaction fees
The Dubai Land Department (DLD) charges a fee equivalent to 4% of the property's purchase price. This fee covers the property transfer tax and other administrative costs related to the transaction.
Registration fees
When purchasing a property, there is a 2% registration fee, typically shared between the buyer and the seller. Additionally, there are fixed fees for obtaining property plot maps, along with knowledge and innovation fees.
Mortgage fees
If you're using a mortgage, expect additional fees. The DLD charges 0.25% of the mortgage amount, while banks impose a 1% commission with value-added tax (VAT). The cost of property appraisal is around 3,500 AED.
Real estate agent commission
Working with a real estate agent typically involves an additional fee of about 2% of the purchase price, plus 5% VAT.
Other costs
Additional costs may include maintenance fees and service charges, which vary depending on the type and size of the property.
Tips for first-time homebuyers
For those new to buying property in Dubai, here are some key steps to follow:
Research: Explore available options and set a budget.
Hire a Broker: A reputable broker can guide you through the buying process.
Property Viewings: Visit multiple properties to get a sense of what's available.
Sign the Agreement: Once you've chosen a property, you'll need to sign a contract (Form F) with the seller and make a deposit.
No Objection Certificate (NOC): Obtain this certificate to confirm that all fees have been settled.
Property Transfer: After obtaining the NOC, the property transfer process can begin.
Take Possession: Connect utilities and pay any remaining fees to complete the transfer.
Understanding the costs associated with buying property in Dubai is essential to avoid unexpected expenses. With this simplified guide, you'll be better prepared to navigate the home buying process and become a homeowner in Dubai with confidence.