How much does it cost to maintain a property in Dubai?

Real estate maintenance in Dubai combines obligatory and regular payments set for all homeowners in Dubai. Potential buyers of a house or an apartment in Dubai will be surprised that fees are lower here than in some other countries. There’s also no income tax. In this article, we’ll look at the main expenses to maintain real estate in the most technologically advanced emirates.

Content:

• Property taxes in Dubai
• State fees for registration of purchase and sale transactions
• Housing costs in Dubai
• Service expenses
• Regular expenses
• Help from our specialists

Property taxes in Dubai

Real estate in Dubai and the UAE is not subject to taxation. But, citizens must pay special charges and fees for registration and transfer of ownership. They must also regularly pay for the building maintenance.

What are other expenses?

State fees for registration of purchase and sale transactions

The state fee for a real estate purchase must be paid to the Dubai Land Department (DLD).

Other expenses are:

• DLD fee - 4% of the property value (it should be paid in full on the primary market or the real estate developer pays 50%) + administration fee:
  • For residential (primary and secondary markets) and commercial real estate - 580 AED (157.9 USD);
  • For land plots - 430 AED (117 USD);
  • Housing units under construction - 40 AED (10.8 USD).
• Registration fee:
  • For real estate with a price lower than 500,000 AED (136,130 USD) - 2,000 AED (544 USD);
  • For real estate with a price higher than 500,000 AED - 4,000 dirhams (1089 USD).

Note. To register a mortgage in DLD, you need to pay 0.25% of the loan amount + 290 AED (79 USD).

Note 2 There’s also an important legal document. Without it, it’s impossible to issue a transfer of ownership in Dubai. This is the NOC (No Objection Certificate). The issuing fee is usually the seller's responsibility. The cost is up to 5000 AED - 1360 USD.

Housing costs in Dubai

The owner must pay the cost of property maintenance in Dubai. What payments are included in the maintenance and service of a purchased property in Dubai?

1. Service expenses;
2. Regular expenses.

Service expenses

Housing maintenance and service expenses should be in line with the special Service Charge Index, developed by the Land Department institution - RERA. The RERA index is different for every 4 main category of real estate of villas, apartments, offices and shops. The fee depends on the room space, the specific building and the location. The cost of m2 varies from 3 to 30 AED (0.8 - 8.17 USD).

Housing maintenance payments go to security, elevator and surrounding area upkeep, cleaning of swimming pools, etc. in Dubai.

Regular expenses

These include utility bills based on meter readings. Tariffs depend on the room space and the consumption period. Dubai Electricity and Water Authority (DEWA) reports that 1 person consumes about 590 liters of water and 20,000 kilowatt-hours on average per year.

A utility bill also depends on the property type. For houses with air conditioning and a swimming pool, water consumption will be times higher than apartments especially during the dry months.

Utility bills:

• The standard charge per electricity unit - 20 fulūs (1 fils/100 AED);
• Water - 3 fils per 1 liter;
• Sewerage - 0.5 fils per 1 liter.

If the Authority finds excessive water or electricity consumption, tariffs will increase. Like if electricity consumption has increased to 2000 kWh, the tariff will be raised to 24 fulūs.

• The average water bill for an apartment is about 600 AED (163 USD) per month and 900 AED (245 USD) for villas;
• Air conditioning in areas with central air conditioning - 260-440 dirhams (70.7-119 USD) in summer, 150-260 dirhams (40.8-70.7 US dollars) in winter.

Villa’s maintenance expenses include:

• Cleaning of drinking water tanks - 480-920 AED (130.6-250.4 USD) per year;
• Pool cleaning, garden and lawn maintenance – AED 3,670 (1,000 USD) per year.

Help from our specialists

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If you need quick and detailed advice on buying, selling or renting real estate in the UAE, please leave your request on the website or contact the company specialist directly using a method that suits you. We’ll get back to you promptly!