Residential property maintenance costs in Dubai

How much does it cost to maintain property in Dubai and what fees do you need to pay when registering the right to own real estate in Dubai? Check out this article to find the answers to these questions.

Fees when registering a housing transaction in Dubai

Government fees are paid at the Dubai Land Department (DLD) at the stage of purchasing a residential property.

Home ownership registration costs:

  • a DLD fee of 4% of the property value (if the housing is purchased on the primary market, 50% of this amount or the entire amount is paid by the developer) + administration fee (separately for each of the four types of property):

    – residential real estate in the primary and secondary markets – 580 AED ($ 158) per unit;

    – commercial property – 580 AED (158 $);

    – land plots – 430 AED (117 $);

    – off-plan properties – 40 AED ($ 10).

  • a registration fee:

    – for units cheaper than AED 500,000 ($136,130) – AED 2,000 ($544.5);

    – for units priced over AED 500,000 ($136,130) – AED 4,000 ($1,089).

  • a mortgage registration fee, if the transaction is carried out with a mortgage. The home loan is registered at the Dubai Land Department – 0.25% of the loan amount + AED 290 ($79).

In Dubai, there is also a legal document required when making a real estate transaction on the secondary market. This is a NOC (No Objections Certificate) – a certificate that the developer / management company has no objections to the transfer of property rights from the seller to the buyer. The fee for issuing this certificate is up to AED 5,000 ($1,360). Usually, the seller pays for it.

Residential property maintenance costs

The owner of the housing is obliged to make monthly payments for the maintenance of the housing, namely:

  • the RERA Service Charge Index for properties in Freehold Zones (the RERA Service Charge Index);
  • regular fees for the maintenance of an apartment in Dubai and housing maintenance.

The RERA index is divided into four main categories of real estate: apartments, offices, shops and villas. The Dubai maintenance fee applies to all types of properties in the city. These fees are charged per square meter and range from 3 to 30 AED, rarely higher. The amount depends on the area, specific residential community and building. There is a difference in the tariffs for servicing apartments in residences and private houses (townhouses and villas). For up-to-date information on fees for a particular facility, please visit the DLD website. This money is used to maintain common areas and the surrounding area, maintain elevators, clean swimming pools, pay for security, etc.

For example, for a studio of 28 m2 in Dubai, on average, you have to pay from 1499 to 6023 AED (408‒640 $) per year.

Utility bills are formed on the basis of meter readings. Tariffs are calculated based on the area of ​​​​the premises and the time of use.

The Dubai Energy and Water Authority (DEWA) estimates that there is an average of 20,000 kWh and 130 gallons of water per person per year. The amount varies depending on the type of housing, it will be higher if the house has private pools and gardens. Bills go up during the summer months as residents use conditioning more often.

The air in the houses is cooled through a cold water system, the cost of which is usually included in the electricity bill. In the areas of Dubai Marina and Palm Jumeirah, for example, it is paid separately. In the absence of central air conditioning, a separate cooling system (chiller-free) is installed on the roof of the house, which is connected to the main electricity meter of the building. The calculation of the cost of air cooling in this case depends on the size of the equipment and the volume of electricity consumption by it. If you are a tenant and rent a villa or apartment with a chiller-free system, you do not need to pay extra for the use of air conditioning, since its cost is already included in the rent.

When applying to DEWA, ​​tenants will be required to pay a fully refundable deposit of between AED 1,500 and AED 5,000 ($408‒1361), depending on consumption and type of accommodation. The deposit will be returned 30 days after the final payment of the invoice.

DEWA charges a standard fee of 20 fils (1 fils equals 1/100 AED) per unit of electricity, 3 fils per liter of water and 0.5 fils per liter of sewage. If you are found to be using more water or electricity than usual, the rate will be increased. For example, if electricity consumption exceeds 2000 kWh per month, the tariff increases to 24 fils per unit.

Property utility bills in Dubai:

  • Water bills – an average of AED 600 ($163) per month for apartments and AED 900 ($245) for villas;
  • Air conditioning bills in areas with the central conditioning system – AED 257‒440 ($70‒120) in the summer months, AED 147‒257 ($40‒70) in the winter.

In a private house or villa, the following bills are added:

  • Cleaning of drinking water tanks – AED 478‒918 ($130‒250) annually.
  • Garden maintenance and pool cleaning – AED 3,670 ($1,000) per year.

We will help you buy property in Dubai

Compared to the real estate markets in other countries where you can buy similar properties, the cost of a residential property transaction in Dubai is a small percentage of the purchase price. Knowing about the costs of maintaining houses and casino blackjack tips and tricks will allow you to properly plan the purchase of a residential property. If you have any questions, please contact the hotels near winstar casino Ax Capital for advice. Specialists will answer all your questions and help you choose an object in accordance with your requirements. More real estate options for investment and living you can find on our website.