When you venture into the realm of property acquisition in Dubai, there’s more to consider than meets the eye. Beyond the apparent sale price, a range of fees await payment to the Dubai Land Department (DLD) as you embark on your property ownership journey. Here’s a breakdown of the costs associated with procuring a property from the government:
- Transfer Fees: The DLD levies transfer fees, amounting to 4% of the property’s sale price. Additionally, you’ll need to cover a knowledge fee, which stands at AED 430 for plots, AED 40 for off-plan properties, and AED 580 for apartments and offices.
- Mortgage Registration Charge: If you’re securing a mortgage, be prepared to pay a Mortgage Registration Charge equal to 0.25% of the loan amount, along with AED 290.
- Registration Trustee Appointment Fee: This is another expense to account for, with a fee of AED 4,000 for title deeds and AED 5,000 for off-plan properties, payable in cash.
- No Objection Certificate (NOC) Fees: Property developers often require a fee for issuing an NOC. The cost varies depending on the developer, ranging from AED 500 to AED 5000. It’s worth noting that developers may deliver properties slightly smaller than advertised, typically around 5% less. For instance, a property listed as 1,000 square feet may be delivered at 950 square feet. Additionally, property developers may request a cash guarantee deposit equal to 10% of the selling price.
- Dubai Electricity and Water Authority (DEWA) Fees for Newly Transferred Properties:
- For Apartments/Offices, DEWA charges a refundable deposit of AED 2,000, a reconnection fee of AED 100 (varies based on the number of meters installed), and a knowledge/innovation fee of AED 30.
- For Villas, the DEWA fees include a refundable deposit of AED 4,000 and a reconnection fee (based on the number of meters).
- EMPOWER Fees:
- For Apartments, EMPOWER charges a refundable security deposit of AED 2,000 and approximately AED 500 in advance quarterly demand charges.
- For Offices, the charges include a refundable security deposit of AED 4,000 and similar advance quarterly demand charges.
- Note that primary owners are subject to an additional connection fee of AED 2,000 and an admin fee of AED 1,000 on top of the security deposit. The security deposit is refundable upon property sale.
- ISTA Fees (for Citywalk):
- Connection Fee: AED 200
- Refundable Security Deposit varies depending on the property type.
Please be aware that these fees can significantly impact your overall property investment, so it’s crucial to account for them when planning your acquisition. Keep in mind that understanding these expenses is essential for making well-informed financial decisions when buying property in Dubai.
