Property buying in Dubai comes with a number of benefits. It’s glamorous, modern and offers a lifestyle that many can only dream of. Whether you’re interested in a luxurious apartment with city views or a villa in a quiet area, there’s always a reason to invest in this city.
But before you fall for the glossy property brochure or the attractive magazine spread, there are certain costs of property buying in Dubai that you need to be mindful of. It’s only after you’ve weighed these up that you can make the right decision for a hassle-free property-buying process.
The Base Price of the Property
The base price of the property is usually the first thing that comes to mind for those interested in property buying in Dubai. This is the amount you’ll start saving for or borrowing against. But this base price is merely the beginning.
Brokerage and Property Registration Fees
Property brokers or agents form an integral part of the property buying process in Dubai. Aside from helping you choose the right property and handling the negotiations, they also accompany you to the paperwork stage. But their assistance doesn’t come without a fee. Generally, brokers charge between 2% to 5% of the total property price. It’s imperative that you include this in your budgetary considerations to shield you from unwelcome surprises.
After you’ve finally picked the ideal property, you need to register it with the Dubai Land Department. The property registration fee, which is typically 4% of the total property cost, is something you need to pay in order to legally claim the property and have the ownership transferred in your name.
Charges for Maintenance and Services
Most luxury properties in Dubai come with top-notch amenities like swimming pools, gyms, manicured gardens, round-the-clock security services and many more. While these additions improve your overall quality of life, they also incur maintenance and service fees that you need to pay monthly or annually, depending on your property type and location. For example, Grovy Real Estate Developers’ Alcove, Aura and Aria developments boast of their luxurious amenities and offerings. Naturally, such high-quality standards entail a hefty budget for cleaning and upkeep.
Service fees, on the other hand, are periodic charges property owners in Dubai need to be mindful of. This is used for the maintenance of common areas, security personnel and other related facilities. Service fees are generally charged per square foot, although this amount varies per development. To get a clear picture of your long-term investment, make sure to ask about this before you buy the property.
Mortgage, Relocation and Furnishing Fees
Mortgage loans come with processing fees, valuation fees and insurance premiums. Most banks in Dubai demand at least 20% down payment for expats when applying for a mortgage loan. Some developers, however, offer schemes that require only 10% or have flexible down payment options. Include all possible fees to ensure the accuracy of your budget.
Once you’ve bought your property, there are other costs for moving and furnishing. Whether you’ve purchased a furnished apartment or an unfurnished villa and need to decorate every corner from scratch, expenses can quickly stack up. Budget for new furniture, white goods and interior accessories to help make your new home feel like the warm and inviting place you need it to be.
Utility Connection Fees
Electricity, water, gas and internet services all require utility connections. There are connection fees depending on the utility provider and the size of your property, so it’s best to check with local providers to estimate how much this will cost.
Hidden Legal Fees
Legal expenses are also worth considering. Hiring a legal expert to handle the property purchase can prevent any unwanted complications and ensure the correct paperwork is filed and processed for your new venture. Like any fee, legal expenses vary but is certainly worth the investment to protect yourself during the buying process.
Developer Fees
In some cases, developers may impose additional developer fees for particular services or amenities. For example, Grovy Real Estate Developers who specialize in high-end projects like Alcove, Aura and Aria may include developer fees for the luxurious services offered within the development. These may range from concierge services to exclusive usage of certain facilities or special maintenance requests.
The Cost of Buying an Apartment in Dubai
All the above-mentioned hidden costs are to be considered when buying an apartment in Dubai. For instance, buying an apartment in Grovy’s Aria development will include the purchase price, agent fees, registration fees, maintenance fees and service fees. The overall expense can quickly eclipse the initial price tag, so it’s important to thoroughly consider all costs involved in your new investment.
Conclusion
Property purchase in Dubai is a major investment, and knowing all the hidden costs involved is vital to making the right choice for your budget. These expenses can vary greatly and affect your finances, from the real estate agent fees to maintenance charges. But with the right planning and research, you can overcome the challenges of investing in the Dubai property market and enjoy the rewards of luxurious property ownership in this exciting city.
If you’re interested in taking the next step and exploring the many luxurious property opportunities in Dubai, Grovy Real Estate Developers can assist you in finding the ideal place for your ideal lifestyle. Visit our website today to learn more.
