How much does a Dubai home really cost? Additional costs of properties in Dubai
Two-bedroom apartment properties in Dubai will cost over £1200 per month to rent whilst it would set you back around £167,000 to buy the same place. A four-bedroom Dubai home will cost somewhere in the region of £350,000. Although there is no tax on Dubai property you will still incur extra costs when you buy your Dubai home. The advantages of buying properties in Dubai, a tax haven, should not be underestimated, however, and the costs will be lower than elsewhere.
Initial costs - buying properties in Dubai
After finding your dream Dubai home, the next thing you need to do is pay a deposit. The deposit varies depending whether the property is a resale or a new-build development but 10-15% of the value of the Dubai property would be typical. Off-plan properties in Dubai are paid for over the course of construction with instalments made at pre-determined points.
Estate agents, lawyers and fees relating to the sale of Dubai property
Fees for estate agents are normally paid by the seller of properties in Dubai although this can be split or passed onto the buyer. Have the contract checked to ensure the estate agent fees for your Dubai home have not been surreptitiously passed on. You are not obliged to contract solicitors when purchasing Dubai property but it is highly advisable that you do so in order to avoid the pitfalls of buying property in another country.
You will need to pay for a surveyor to inspect the Dubai home and have a valid life insurance policy if you are borrowing money to buy properties in Dubai.
No tax on your Dubai home
There are no government taxes, such as stamp duty or transfer tax, payable when you purchase properties in Dubai. Capital gains tax on Dubai property sold for profit does not apply either. You will, however, need to pay a 1.5% land registry fee for the lands department to register the title of your Dubai home.
Annual service charge for your Dubai home
When living in modern apartment or villa complexes in Dubai there will be an annual service charge covering maintenance, refuse collection etc. The charge will vary according to each individual development of properties in Dubai.
Impact of currency on the price of Dubai property
Fluctuations between the dirham and other currencies can make properties in Dubai a good deal cheaper or more expensive in a short period of time. Dubai currency issues should not be taken lightly.
Because Dubai is a tax haven, the additional costs of purchasing Dubai property are not as great as in other countries. However, buying properties in Dubai will still require extra fees to be paid, such as to lawyers, surveyors and the lands department. Allowing an extra 5% of the value of your Dubai home on top is a fairly safe estimate.
