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Feb 13, 2025With futuristic and modern cities like Abu Dhabi and Dubai, the United Arab Emirates has become a favorite destination for people from around the globe. People desire to own property in these cities because they provide high security and excellent transportation, but they are also in high demand. There is always a potential for capital growth, which has become a feasible aspiration for many worldwide. However, potential investors and buyers must also keep some things in mind about additional or hidden costs that come with the property. These hidden costs are imposed by the Land authorities, real estate agents, developers, conveyancers, and mortgage lenders. In this article, we will discuss the hidden costs buyers should expect when purchasing a property in the UAE.
Hiring a real estate agent can increase the property purchase cost by 2%, including the Value Added Tax, which is paid after the sale is completed. A qualified professional will help you complete your transactions much more smoothly and provide you with the best advice to pay for a property in the United Arab Emirates.
In UAE, certain rules and regulations govern buyers and sellers in real estate. These rules also include upfront fees that are separated from the cost of the property, and these usually depend on the type or area and property. For example, suppose a buyer buys a property in Dubai. In that case, the Dubai Land Department (DLD) applies a fee that is 4% of the total cost of the property and is divided between the buyer and the seller, although the buyers usually pay it.
Those who are buying a property with a loan must pay the mortgage fees in the United Arab Emirates, which are a combination of processing fees, valuation fees, and mortgage fees. Those who are interested in registering a mortgage and buyer will have to pay an NOC, which is a No Objection Certificate fee that ranges from AED 2500 to AED 5000.
In the United Arab Emirates, property owners pay services charges that cover property management, such as security staff, landscaping, cleaning, and keeping the building in top condition. This applies to all kinds of properties for sale, including apartments, villas, commercial, and retail properties. These charges are based on factors like the type of project, neighborhood, and the purpose for the purchase of property.
Buyers must pay a few administrative costs when purchasing a new property in the United Arab Emirates. Here is a breakdown of these charges: AED 520 for the title of the Deed, AED 4,200 for the admin fees, and 4% of the property value for fees. When you buy a property in the United Arab Emirates, it is not just about paying the payment and receiving the property; it involves a complex procedure, such as paperwork, that can be difficult for an average person.
When the buyer purchases a property, they have to pay 10% of the agreed cost, which will be transferred to the seller's name. This deposit is a security procedure that the hired real estate agent typically holds until the property is completely in the buyer's name. However, this deposit is refundable if the transaction is canceled due to any circumstances or a breach of the contract.
Conclusion
It is important to know about the additional costs and various charges when considering purchasing a property in the United Arab Emirates. Knowing about the charges related to the property will allow the buyers to make careful decisions and plan accordingly. Buyers can learn about these charges with some preparation and research, and a professional real estate agent can help them by providing the expertise.
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