What is the estimated cost of selling a property in Dubai?
Selling a property in Dubai isn’t as straightforward as it might seem. While you may envision simply posting a property listing online and receiving offers from eager buyers, the reality is more complex. The Dubai property market can be challenging to navigate, especially without proper preparation. A crucial part of this preparation is understanding the associated costs of selling a property in Dubai.
This guide will detail the expenses incurred when selling a property in Dubai, covering all property types, including completed, mortgaged, and under-construction properties.
The True Cost of Selling Property in Dubai
Ready to sell your Dubai property? Avoid unexpected costs. This comprehensive guide outlines the true expenses associated with selling property in Dubai, ensuring a transparent and stress-free experience.
1. The Cost of a No-Objection Certificate in Dubai
Before selling your Dubai property, you’ll need a No Objection Certificate (NOC) from the developer. This document confirms that all outstanding service charges are settled and that the developer has no objections to the sale. The NOC typically costs between AED 500 and AED 5,000 + VAT, and is usually paid by the seller. To ensure a smooth property sale in the UAE, understanding the NOC acquisition process is crucial.
1. Agency fees for selling cost in dubai
Before selling your Dubai property, you’ll need a No Objection Certificate (NOC) from the developer. This document confirms that all outstanding service charges are settled and that the developer has no objections to the sale. The NOC typically costs between AED 500 and AED 5,000 + VAT, and is usually paid by the seller. To ensure a smooth property sale in the UAE, understanding the NOC acquisition process is crucial.
2. Agency fees for selling cost in dubai
Tip: Before you sign, read over and comprehend the terms!
Don’t overlook realtor fees when calculating the total cost of selling your Dubai property.
3. Dubai land department fees
When selling property in Dubai, sellers need to factor in the Dubai Land Department (DLD) fee. This fee, typically 4% of the property’s sale value, is a standard charge imposed by the DLD to oversee real estate transactions in Dubai. While it’s often split between the buyer and seller, the exact percentage each party pays depends on the specific terms outlined in their sale and purchase agreement.
4. Sales progression fees in Dubai
Dubai property transactions involve a AED 7,500 sales progression fee, shared equally by buyers and sellers. This fee secures the services of a skilled sales progression officer who expertly manages the property transfer process. By handling all the necessary paperwork and liaising with relevant parties, this professional simplifies the transaction for both parties.
5. Transfer of ownership/admin fees
- If the sale price of the property is below AED 500,000: AED 2,100
- If the sale price of the property is above AED 500,000: AED 4,200
The Dubai Land Department (DLD) officially recognizes a property sale as complete when the buyer pays the required transfer fees to the DLD’s designated registration trustee
Fees of Selling a Mortgaged Property in Dubai
The Dubai Land Department (DLD) charges an administrative or transfer of ownership fee as part of the property selling process. This fee is typically paid to the DLD’s registration trustee offices and can be covered entirely by the buyer or shared between the buyer and seller, depending on their agreement.
Ready to sell your mortgaged property in Dubai? Let’s break down the fees involved.
1. Early Settlement Fee
If you pay off your Dubai property mortgage early, you’ll be subject to an early settlement fee. However, to make this process more affordable, the fee has been reduced to 1% of the remaining mortgage balance or AED 10,000, whichever is lower.
2. Blocking charges
Dubai property sellers with mortgages face a potential extra cost: a blocking fee. This fee, typically ranging from AED 1,020 to AED 1,520, is necessary to register the property in the buyer’s name for a short period. This step protects the buyer by preventing the property from being sold to someone else during the mortgage payoff process.
3. Mortgage release fee
Dubai property sellers with outstanding mortgages may need to pay a fee if their mortgage is paid off before the property sale is completed. A separate fee is also payable to the registration trustee. The conventional mortgage release fee is AED 1,290, while the Islamic mortgage release fee is AED 1,560.
Fees to sell off-plan property in dubai
Dubai’s off-plan properties are highly sought-after, offering buyers the chance to customize their living spaces and enjoy top-tier facilities. When selling an off-plan Dubai property, it’s crucial to understand the developer’s specific terms and conditions. Keep in mind that there may be extra expenses involved in selling properties that are still in development.
Developers often charge fines for selling off-plan properties prematurely, especially before completion or key payment deadlines. To mitigate these penalties, sellers must comply with the developer’s specific terms and conditions. These requirements can differ between developers, so careful planning is essential.
If you’re considering investing or purchasing an off-plan property, check out Bayut’s curated list of the newest off-plan projects in Dubai.
The conditions for selling off-plan property in Dubai vary by the developer
FAQS
What are the hidden charges of selling a house in dubai?
The fees involved in selling a property in Dubai are not standardized and can differ based on the specific property. A comprehensive list of these fees is included above.
What are the steps involved in selling my Dubai property?
New to selling property in Dubai? Our guide walks you through the process step-by-step, from listing your property to closing the deal. Learn about essential documents and paperwork to ensure a smooth transaction.
What are the property sales taxes in Dubai?
Property owners in the United Arab Emirates are exempt from all property taxes.
Does the seller pay fee to the agent in Dubai?
In many real estate transactions, the buyer is responsible for paying the realtor’s commission.
Should I invest in off-plan projects in dubai?
Off-plan properties offer investors the unique opportunity to purchase premium real estate directly from developers. These investments can provide numerous benefits, such as lower initial costs, flexible payment schedules, and potentially high rental yields. Dubai’s off-plan market is particularly attractive for those seeking lucrative real estate opportunities.
However, if you’re keen to delve deeper, check out our post on the advantages and disadvantages of off-plan property purchases in Dubai. This guide will help you anticipate potential challenges associated with buying off-plan (hint: there aren’t many).
I want to sell my off-plan Dubai property. What are the extra costs involved in this process?
Property owners in Dubai may face additional expenses when selling off-plan properties, as developers frequently include penalties in their sales contracts for early sales.
What are the typical real estate agent fees in Dubai?
Understanding real estate agent fees in Dubai is key for buyers and sellers. For resale properties, agents usually charge a 2% commission on the final sale price. A 5% VAT is also added to this fee. This provides clarity and prevents unexpected expenses.
A standard commission of 5% of the annual rent applies to rental properties in Dubai. However, this rate can be adjusted through mutual agreement between the parties involved.
This concludes our guide to the real costs of selling property in Dubai. For more specific information on the costs of selling a house in Dubai, please visit the official website of the Dubai Land Department. The costs of selling a property can vary depending on the property itself. Therefore, it’s important to do your own research to make sure you account for all potential hidden costs when selling properties in Dubai.
Many people wonder about the hidden costs of selling a home in Dubai. This article aims to shed light on these expenses, making the process of selling your property smoother and more transparent.
Alternatively, for those interested in buying or investing in Dubai real estate, MyBayut offers a comprehensive guide on how much you’ll need to budget for a home purchase in Dubai.
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