Revealed: The Cost of Selling Property in Dubai - MyBayut (2024)

FAQs

Do buyers pay realtor fees in Dubai? ›

This fee is usually 4% of the sale price of the property and is typically split between the buyer and seller, which is paid to the Dubai Land Department, the authority that oversees all real estate transactions in the city.

Dubai Land Department (DLD) fees

DLD fee is 4% of the property selling price. Market practice is that this is paid in full by the Buyer, but it can be split between the Buyer and Seller if agreed.

The Dubai real estate market is steadily increasing and is predicted to increase by 46% in 2023. According to the Realiste AI data reports, It is predicted that the cost of real estate in this city will rise by 29% in 2023.

Average AED 3,306 per month.

Article (27): A broker's fee shall be determined by agreement. If there is no agreement, the fees shall be determined according to the prevailing practice.” Generally, Real Estate Agent's commission in Dubai is 2% of the purchase price unless you and the broker agreed otherwise.

No legal barrier to selling your own home in Dubai

As we have just mentioned, you can sell your house without any middleman (broker, company, or person). No legal or regulatory barriers will prevent you from doing so.

Seller Fees means: (a) for a Service Contract, the fixed fee agreed between a Buyer and a Seller; and (b) any bonuses or other payments made by a Buyer to a Seller.

Average AED 7,024 per month.

Requesting the valuation of a residential apartment in Dubai or a villa, the customer needs to pay the following fees: AED 4,000. A Service partners fees of AED 230 + VAT (If the customer applies at the Real Estate Services Trustees Centres)

What happens to your property in Dubai after 99 years? ›

This lease term is generally for 99 years but can be less in some instances. This form of property ownership in Dubai only grants the buyer rights to the unit, not the land it's built on. At the end of the lease period, the ownership of the purchased property unit reverts to the freeholder.

These areas are typically located in prime locations and include popular areas such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Beach Residence (JBR), and Emirates Hills, among others. Foreigners can own 100% of the property in these areas without the need for a local sponsor or partner.

In Summary

So, if you're a real estate enthusiast or aspiring investor, now is the perfect time to invest in Dubai real estate! There are plenty of opportunities to make a profit through Dubai real estate.

“The average annual apartment and villa asking rents reached Dh99,737 and Dh295,436, respectively, as of February 2023. The highest rental rates for both apartments and villas have been seen in Palm Jumeirah, with average annual rents reaching Dh260,467 and Dh1,017,614, respectively,” according to the report.

The city has already endured two real-estate crashes this century: an abrupt one during the financial crisis in 2008, when property values fell by half, and a slower one from 2014 to 2020, when they slid by 35%. Buyers are still piling in, but some rental rates may be peaking.

Landlord Guide - Fees for Renting Only

The Tenant will pay our agency commission which is 5% of annual rent value (min fee AED5,000/-). We do offer services to The Landlord to help preserve your asset which are free if you work with Abode on an exclusive basis; Rent or Sell Valuation. Property Inspection Report.

Dubai Real Estate Investment Having High ROI

Dubai's real estate return on investment is amongst the highest in the world in gross rental income of approximately 5.19 percent and return on investment (ROI) from 8 - 15 percent.

What is the average salary in Dubai? The average salary in Dubai is AED 16,775 per month⁶ — this is roughly $4,570. In the US, the average monthly income is $3,900⁷.

Real estate is a commission-only industry

Dubai's real estate offers the opportunity for you to take full control of your own finances and essentially write your own paycheck!

What percent commission do most real estate agents charge? The traditional standard commission is 6 percent of a home's purchase price, which is split evenly (3 percent each) between the buyer's agent and the seller's agent.

How to negotiate property price in Dubai? ›

Yes, foreign nationals, which includes both expatriate residents and non-resident investors, can purchase property in Dubai on a freehold basis. This allows foreign nationals to buy, sell or lease their property.

Selling a property involves paperwork and communication between owner and seller, which is why working with a trusted real estate agent is the best option. The agent should have marketing plans to sell your home faster, including offline and online marketing and posting the property on most-visited portals.

Average AED 3,451 per month.

To live comfortably in Dubai, you should expect a salary of at least 10,000 to 15,000 AED. This should allow you to cover your rent and bills and have enough disposable income to enjoy Dubai to the fullest.

Due to the transient nature of the population, UAE home ownership rates are very low. About 26 per cent of those aged 18 to 36 in the Emirates own their home according to a recent HSBC study. Many properties are owned by investors who rent them out and most residents are tenants.

The emirates prime real-estate prices surged 70.3% over the 12 months through September, making it the biggest gainer on Knight Franks global index, which focuses on a city's most desirable and expensive homes. According to CBRE's research, in the year through February 2023, average Dubai rents increased by 27.7%.

If the property's rent is less than AED 100,000, the property management charge is AED 5,000. If the rent is larger than AED 100,000, however, the property management cost is 5% of the rent. It means that: For residences, 2-5 percent of the annual rent is required.

How long can you stay in Dubai if you own a property? ›

Investor's costs for getting a UAE residence visa

You may obtain a UAE residency visa for ten years by purchasing real estate. Investors can buy properties in the Freehold Zones; these are the areas where foreigners may purchase real estate. The minimum investment amount is AED 2,000,000, or about $545,000.

RULES FOR FOREIGNERS BUYING PROPERTY IN DUBAI

Foreign property ownership is permitted in areas that are designated freehold in Dubai. This means that expats and foreign buyers (who don't live in the UAE) may acquire freehold ownership rights without leasehold rights, usufruct rights and restrictions for up to 99 years.

Buying property in Dubai

In Dubai, foreign ownership is permitted in areas designated as freehold. Foreigners (who don't live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.

HIGH RETURN ON INVESTMENT (ROI)

It's well-known that properties purchased in desirable areas promise more ROI than others. According to Bayut's annual sales market report for 2022, DAMAC Hills 2, Jumeirah Village Circle (JVC) and Dubailand are the most popular areas to buy property in Dubai.

It is possible to buy Dubai property in joint names

In most cases the percentage share of ownership will reflect the ratio of financial investment by each party. In the case of married couples, this is usually 50/50.

IS IT ILLEGAL TO BUY A HOUSE WITH CASH IN THE UAE? No, it is perfectly legal to buy a house in Abu Dhabi, Dubai or anywhere in the UAE with cash.

The tax-free environment is one of the most important elements contributing to the reduced prices of Dubai residences. The absence of personal income and capital gains taxes in the UAE makes it an appealing destination for investors and expats.

In the current climate, with an increase in international investors and given that rental prices are at an all-time high, Expace advises residents with substantial savings to invest by purchasing a property for the best return on investment (ROI).

Purchasing real estate in Dubai may grant the buyer a residence permit. According to the UAE investor visa program, the property must be completed upon the purchase and its value must be of at least AED 1 million. Holders of residence visas through real estate purchase may also sponsor their dependents.

Family of four estimated monthly costs are 3,519.7$ (12,924.7AED) without rent. A single person estimated monthly costs are 1,018.2$ (3,739.0AED) without rent. Dubai is 35.1% less expensive than New York (without rent). Rent in Dubai is, on average, 51.3% lower than in New York.

How many years you can live in Dubai? ›

Residents of the UAE can live, work and study in the state for as long as their visa is valid. In 30 years, they can apply for citizenship by naturalisation. Let's explore the different ways to become a resident of Dubai or one of the other emirates.

The average price to rent a Single Room Flat in Dubai is Rs. 66,220. Know more.

Dubai Real Estate and the Prices

The high demand will especially prevail due to high-end individuals. In the current year, the real estate sector might witness a decline in property prices for a brief period. Reports suggest that in 2023, there will be a moderate increase of 0.5% in property prices.

“The current and projected market conditions are in favour of owners of Dubai residential properties if they are thinking to sell or rent their units as demand for ready property outperforms supply, especially in sought-after locations,” says Nikita Kuznetsov, Partner Metropolitan Group and CEO of Metropolitan Premium ...

It could grow by more than 7% in 2023, which is lower than 12.4% shown in 2022 but still times higher than that in other international housing markets. The growth of Dubai's real estate market as a whole is slowing down in exactly the same way as all other world markets are slowing down.

Real Estate Agent Salaries in Dubai, United Arab Emirates

The average salary for Real Estate Agent is AED 5,000 per month in the Dubai, United Arab Emirates. The average additional cash compensation for a Real Estate Agent in the Dubai, United Arab Emirates is AED 18,500, with a range from AED 44 - AED 4,82,000.

Dubai House Prices in Indian Rupees. As of February 2023, the average house price in Dubai is around AED 3.3 million according to data from property consultants, Knight Frank. This is equivalent to approximately INR 254 million based on the current exchange rate of 1 AED to 7.74 INR.

Strong Return on Investment

According to statistics from the Dubai Land Department, real estate in Dubai offers an average yearly return on investment of 5% to 8.4%, a competitive rate compared to major global cities like London, New York, and Singapore.

What is the average salary in Dubai? According to Salary Explorer, the average salary in Dubai is 258,000 AED per year (70,256 USD as per exchange rates in 2023). This figure can help you get an overview of Dubai's economy and its standard of living.

In Dubai, you cannot be a freelance real estate agent. You must be an employee of a registered real estate brokerage to apply for a Brokers Permit. UAE citizens and GCC nationals can easily sign up for the licensing process. Expats, however, need to have a valid residency visa to apply for a job as a realtor in Dubai.

Why is Dubai real estate so cheap? ›

Oversupply. Another factor contributing to lower Dubai house prices is the market's surplus of properties. During the global financial crisis of 2008, Dubai had a real estate bubble, which resulted in a construction frenzy. As a result, there are currently more houses on the market than buyers, causing values to fall.

Being the best real estate agent in Dubai is not easy, but with the right strategy, it is certainly achievable. Building your business from scratch is a challenge that you should be willing to face. It's wise to set realistic goals for yourself so you can establish a timeline for achieving them.

Across the emirate, prices of high-end homes will jump by 6% to 7.9% this year, the highest in the world, according to real estate consultancy Savills. However, Dubai's capital value growth, which will be similar to Singapore's, is lower than the 12.4% increase recorded last year.

Average Housing Rent

In Dubai, the minimum house rent is 193,180 AED (52,590 USD) for a home with three bedrooms and 298,640 AED (81,300 USD) for a home with five bedrooms. In Abu Dhabi it is 168,180 AED (45,785 USD) for a three-bedroom home and 305,910 AED (83,280 USD) for five bedrooms.

Dubai Real Estate and the Prices

In 2023, prices have seen a downfall rising by 5% only, which is less than compared to 2022, where the prices rose by 11%, and 2021, with a price rise of 21%.

Can foreigners buy property in Dubai? Yes, foreigners can buy property in designated areas for foreign property ownership in Dubai. These areas are determined by the Ruler of the Emirate of Dubai, and include regions such as Palm Jumeirah, Downtown Dubai, Dubai Marina, Arabian Ranches and Jumeirah Beach Residence.

There is no taxation on properties in Dubai

Because Dubai is a tax-free emirate, both tourists and locals are interested in living there.