Frequently Asked Questions
This guide provides essential information to help you navigate the rules, costs, and considerations when buying or selling property with Royce International Realty L.L.C. in Dubai.
While the term “hidden costs” may imply unexpected expenses, there are no hidden fees in Dubai real estate transactions, as all costs are disclosed during the purchasing process. However, there are additional fees beyond the purchase price, typically amounting to about 7% of the property’s value. It’s essential to be aware of these costs and integrate them into the overall budget. Some of these additional fees include:
- DLD Transfer Fees: 4% of the property’s net selling price.
- DLD Trustee Fee: Approximately AED 4,200, plus admin charges of AED 580.
- Real Estate Brokerage Fees: 2% of the property’s net selling price, plus a 5% VAT.
- Conveyancing Fee: This fee, charged by the real estate brokerage, applies if conveyancing services are provided.
When purchasing real estate, it is essential to consider the property’s potential return on investment (ROI). You want to ensure that the property’s value will appreciate over time rather than depreciate. Ask your real estate broker about the property’s projected performance, especially in terms of appreciation or depreciation. Consider your plans for the property, such as holding it long-term or selling after a few years. This insight will help set realistic expectations and guide you in making an informed decision
If you’re buying an apartment, access to amenities such as a fitness center, swimming pool, and parks is often included. However, if you’re considering a townhouse or villa in a community, some facilities may require additional fees. Clarifying which amenities are included and which have extra charges is important, as it affects your overall ownership experience and costs. Royce International Realty L.L.C. ensures that all buyers fully understand the facilities available and any associated costs.
Rental income depends on various factors, including the type of property, its location, current market conditions, and service charges. On average, the annual net rental income ranges from 5% to 10% after deducting service charges. Although high-end properties may command higher rental rates, their rental income as a percentage is often lower compared to more moderately priced properties. Discussing potential rental income with your broker can provide valuable insight, helping you make a well-informed investment decision.
Traditionally, only UAE citizens were allowed to own property in Dubai. However, in 2006, Regulation No. 3 was introduced, granting non-citizens the right to own property in designated freehold areas. In these zones, non-locals can purchase property with full ownership rights, making Dubai an attractive market for international investors. Major freehold areas include Dubai Marina, Palm Jumeirah, Jumeirah Lakes Towers, and Emirates Hills, among others. Royce International Realty L.L.C. can guide foreign investors through the process, ensuring a smooth and legally compliant transaction.