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 it’s important for investors to know that there are costs beyond the price of the property. Taking these expenses into account will help buyers budget healthily and avoid any unexpected expenses.

The main costs encountered when purchasing real estate are;

DLD transfer fee,
Mortgage registration fee,
Real estate valuation fee,
Maintenance / service fee,
And network connection fee.

Buyers should carefully consider these costs when planning their property investments in order to have a smooth and financially controlled process. Consulting with real estate experts to understand these costs in detail will ensure that there are no surprises. Since every investor's situation is different, it is important to get detailed information about the process from consultancy firms.

Tekce Visa is ready to assist you at every stage of your real estate purchasing journey with its expert staff.

We have prepared this comprehensive content to help everyone who is wondering about the cost of buying a 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 buying property in Dubai. This fee is an average of 4% of the property’s sales price.

Do I Have to Pay for a Property Valuation?

When buying a property, banks usually require a mortgage to determine the value of the property. Valuation fees vary but usually range between AED 2,500 and AED 3,500.

What is the Mortgage Registration Fee?

There is a mortgage registration fee charged by DLD when buying a property. This fee is around 0.25% of the mortgage loan amount.

Are There Service Charges for Completed Properties?

For completed properties, investors should factor in annual service charges for the maintenance of common areas, facilities and building management. These charges vary depending on the type and size of the property.

Network Connection Charges

New property owners are required to pay for the connection of services such as water, electricity and natural gas. These connection charges are determined by the relevant service providers in Dubai.

Is VAT Applied When Buying Property in Dubai?

VAT is generally not applicable to residential purchases in Dubai. However, it may be requested for certain commercial properties and related services.

Is It Mandatory to Obtain a Tax Registration Number?

It is not mandatory to obtain a Tax Registration Number (TRN) when purchasing property in Dubai. This is because there is no income tax or capital gains tax in the United Arab Emirates. However, information similar to an ID number may be requested for certain financial transactions and international money transfers. However, the TRN can be important in real estate transactions, especially when certain transactions are subject to value added tax (VAT). VAT mostly applies to commercial properties and the TRN may be requested during these transactions.

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.