Buying a home in Dubai
Here are the costs you need to know A property builds wealth over time. Make sure you have done the due diligence.
When buying a home in Dubai for the first time, property owners often go through a series of emotions that range from excitement, joy and anxiety to feeling overwhelmed during the selection process. Rakesh Mirchandani, CEO, RNR International Real Estate says, “In the current market, developers in Dubai are offering RTO (rent-to-own) schemes, long term and post-completion payment plans to lure the first-time home buyers. These schemes may be attractive, yet longer-term payment plans may often lead to higher prices of properties.”
So, whether you want to purchase a studio or a mansion, it is vital to do proper due diligence. Mirchandani says “Real estate consultancies that are registered with Rera are given an ORN (office registration number) and BRN (broker registration number), and you should verify this before you engage with them.”
Real estate consultancies that are registered with Rera are given an ORN (office registration number) and BRN (broker registration number), and you should verify this before you engage with them.
COST OF BUYING
Before buying a property, you must take into account the different costs involved. Mirchandani says the standard fees or charges to be paid are:
This is 2 percent paid by both buyer and seller. However, in the market buyers eventually pay the 4 percent of the net selling price.
This is a fixed amount of either Dh4,200 or Dh5,250 (the latter applies to off-plan or under-construction properties)
This is usually 2 percent of the selling price,
1 percent of the loan
0.25 percent of the loan amount
Ranges from AED 525 to AED 5,250, including VAT
From AED 2,130 onwards
From AED 9 per square feet onwards.