What are the Costs of Buying Property in Dubai?

What you need to know to avoid surprise costs when investing in Dubai…

Buying property in Dubai is an exciting venture, but investors should know that there are costs beyond the property price. Considering property purchase expenses in Dubai will help buyers budget wisely and avoid unexpected financial burdens.

The main costs when purchasing real estate include:

DLD transfer fee
Mortgage registration fee
Real estate valuation fee
Maintenance/service fee
Network connection fee

Buyers should account for these costs to ensure a smooth and financially stable process. Consulting real estate experts will provide clarity and prevent surprises. Since each investor's situation is different, getting detailed guidance from consultancy firms is essential.

Tekce Visa is ready to assist you at every stage of your real estate journey with its expert team. We have prepared this guide for anyone curious about the costs of buying property in Dubai.

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How Much Is the DLD Transfer Fee?

The Dubai Land Department (DLD) transfer fee is one of the main costs when purchasing property. This fee is usually 4% of the property’s sales price.

Do I Have to Pay for a Property Valuation?

When buying a property, banks often require a valuation to determine its worth. Valuation fees vary but typically range between AED 2,500 and AED 3,500.

What is the Mortgage Registration Fee?

DLD charges a mortgage registration fee when financing a property. This fee is about 0.25% of the mortgage loan amount.

Are There Service Charges for Completed Properties?

Investors should consider annual service charges for maintaining common areas, facilities, and building management. These charges depend on the property type and size.

What Are Network Connection Charges?

New property owners must pay for setting up water, electricity, and natural gas services. These charges are determined by the service providers in Dubai.

Is VAT Applied When Buying Property in Dubai?

While VAT on Dubai property is generally not applicable to residential purchases, it may apply to certain commercial properties and related services, depending on the specific circumstances.

Is It Mandatory to Obtain a Tax Registration Number?

A Tax Registration Number (TRN) in Dubai is not required when buying property because there is no income tax or capital gains tax in the UAE. However, some financial transactions or international transfers may require identification details. TRN is important in real estate transactions when VAT applies, especially for commercial properties.

What are the Procedures for Opening a Bank Account?

For international investors looking to buy real estate in Dubai, opening a local bank account is very beneficial. A bank account provides a great advantage in terms of making payments and facilitating the process during the property purchase process. The following documents are usually required to open a bank account:

Valid passport
Residence permit (if applicable)
Proof of address (such as a lease or utility bill)
Income statement or letter from employer

How to Make International Money Transfers and Transactions?

International money transfers may be required for real estate purchases. Banks in Dubai offer fast and secure services for international money transfers. Here are the things to consider when transferring money:

Transfer fees: Banks may charge certain fees for international money transfers.

Exchange rate: The exchange rate applied during the transfer is important, as this affects the total cost.

Transfer time: Knowing how long the transfer will take is important for transaction planning.

Available Loan Options in Dubai

There are various loan options available for international investors looking to invest in real estate in Dubai. Many banks offer housing loans to foreign investors with attractive interest rates and flexible repayment terms. Available loan options include:

Mortgage Loans: Mortgage loans are available to both local and international investors, and provide loans up to a certain percentage of the property value.

Construction Loans: These are loans offered for projects that are not yet completed and offer payment plans based on the stage of construction of the property.

Commercial Loans: Loans offered specifically for commercial real estate investments.

Credit Application Process and Required Documents

When applying for a loan, banks usually request the following documents:

Valid passport

Residence permit (if applicable)

Income statement or salary slip

Bank account statements

Documents related to the property to be purchased (such as a sales contract)

The credit application process continues with the bank's evaluation after the documents are submitted to the bank. The bank gives credit approval by considering your credit score, income status and the requested loan amount.

Don't Face Surprise Payments When Buying Real Estate in Dubai!

When buying real estate in Dubai, cost calculation stands out as one of the important steps of the process. Tekce Visa experts inform you transparently at every stage so that you don't encounter any surprise expenses when buying a property. You can learn the costs of buying real estate in Dubai by reaching us via our phone number or e-mail address or by visiting our offices.