Additional costs when buying real estate in the UAE

When it comes to buying residential or commercial real estate in the Emirates, cost becomes a key issue. Potential clients usually look only at the cost of the property without considering other additional costs.

Such costs are bound to be there. Therefore, it is important to make the right calculations and make a plan for payments in advance.

What is included in the additional costs

Choosing an excellent modern real estate site on the site https://theorchardplace.ae/, you should understand the exact amount of money that a particular object will cost. To make a plan of expenses, it is enough to specify the exact cost of the selected apartment or other object, and add to it additional financial costs.

• Contribution to the Land Department. Buying real estate in Dubai, you will need to pay a special fee. It is 4% of the amount;
• Administrative Fee. This is a small amount, which usually varies from 10 to 160 dollars;
• Registration fee. When registering the property, the buyer also pays a certain amount. At the moment it ranges from 550 to 1100 dollars in equivalent. To this should be added the mandatory 5% VAT;
• Commission to the agency. When buying real estate on the secondary market, the buyer pays 2% of the value of the object. In this case, it is more favorable to buy new objects through the developer, since the commission will not have to be paid.

If we talk about the 4% fee and the administrative fee, it is not always paid and not all. In some cases, developers organize a kind of promotion. They can assume part of these costs or pay the full amount instead of the buyer. But this point should be clarified in each individual case.

Take into account the fact that the fee will need to be paid immediately at the first payment for the property in the case of installments.

As a result, it turns out that the additional cost of buying real estate in the Emirates is about 4.5%. If you buy an apartment or a house on the secondary market, then the costs will increase by 6-7%.

A separate attention should be paid to the costs of applying for a mortgage. In the Emirates very loyal conditions, so you have to pay no more than 2.5% of the full cost of housing.

A good option for investors can be real estate that is under construction at the time of purchase. In this case, there are extremely favorable offers for installments through the developer.