What Are the Included Fees When Buying a House in Dubai, UAE

When buying a property in Dubai, whether a house, apartment, or other property, you should consider the costs associated with the purchase. In some cases, these costs may add up to more than the purchase price of the property itself, so it's pertinent that these costs be factored into your purchasing plan.

Find the Cost of Loan Processing When Buying a House in Dubai

The cost of loan processing when buying a property in Dubai varies from bank to bank, and it also depends on the loan you are applying for. Some banks may offer lower rates for a limited time, so checking the market and comparing payments from different banks is wise.

You should also look at the loan processing fees and see how much you are charged for processing your loan. You may also be charged other costs, such as document preparation fees, credit check fees, and legal fees.

However, if you're applying for a property loan, it's a different story. However, if you are buying property within a certain period, your loan may not be processed within the same time frame.

Cost of Property Valuation on Top of House Price 

When buying a house in Dubai, you are usually charged a non-refundable fee of 0.5 to 1.5 percent of the property cost. This is then charged by property advisors and appraisers that evaluate the property and ensure that the property size is correct and that the property is free of defects.

You may also be charged other fees depending on the type of property you are buying and the company you are working with.

How to Calculate the Extra Costs When Buying a House in Dubai

Here is a breakdown of the extra costs you should consider.

• The solicitor's fee: This is a one-time fee paid to your legal and professional counsel during the property purchase process for drafting documents and performing legal representation and due diligence.
• The legal fee or lawyer's fee: This refers to an annual fee a lawyer charges to represent you during the sale and purchase of the property.
• Municipal taxes: These are charges you pay each year to the municipality for water, sewerage, healthcare, public transportation, and other city services.
• Transfer fees: This is required if you transfer the ownership of your property to a new owner. It is a one-time fee paid to the Land Department.
• Baqiah fees: This is paid monthly to your property developer by the end of the month. This is an annual fee paid to your property developer based on a percentage of the total installments you pay your developer.
• Rent registration fees: This is required when you transfer your property to a new owner. It is also a one-time fee.

How to Calculate the Total Amount You Pay in a Dubai Real Estate Purchase

When buying a property in Dubai, a lot rides on the prices of properties. The total amount you pay for a property is generally determined by the purchase price, transaction costs, and additional charges. It is also affected by other factors such as the mortgage interest rate and type of property.

Conclusion

When buying a property in Dubai, it is best to research the different costs you will be paying. You can seek the help of the developer or real estate advisers to help you understand the multiple available options.

Dacha Real Estate is a property agency in Dubai, providing high-quality real estate for sale and lease and comprehensive property management services. Focused on world-class client services, we managed to retain success during the Dubai property crash and have grown to become a key player in the industry. If you’re looking to buy a property in Dubai, get in touch with us! We’re here to help.