How Much Does It Cost To Buy A House In Dubai?
Know about the current home price in Dubai with the complete cost with additional charges, this will make you clear in advance before coming closer to your final investment step.
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Buying luxury or affordable property in Dubai has always been a dream for the majority because in the past high property prices made it super hard for buyers to plan their investment in Dubai's real estate segment.
And now the easy government norms and rapid development, and in fact, the overall growth in the economy have welcomed investors and buyers from around the globe to be a part of Dubai where its 2040 urban master plan is going to make Dubai the best city to live in the world.
So let us come to the main concerns and disclose the major concerns-
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Current Home Prices In Dubai
Complete Cost Of Buying A Home In Dubai
According to the Property Monitor Analytical Service, in Jan 2022, the average cost of housing in Dubai was AED 1,575 (428.8$) per square meter or 34.4% Y-O-Y.
And premium housing prices rose by over 35% and 37.2% in the average price segment, and this was 15.7% Y-O-Y.
Now let us get into the details to understand it way better which helps in your decision.
How Much Is Property In Dubai?
APARTMENTS
| PRICE BRACKET | Avg Price/$ | Average Cost Sq.m/$ |
| Up to $224,000 | 165,500 | 3,300 |
| Luxury property from $ 1,200,000 | 3,800,000 | 32,000 |
| All Real Estate | 1,300,000 | 12,000 |
VILLAS
| Price Segment | Average Cost of Villas/$ | Average Cost Sq.m/$ |
| Offers up to $336,000 | 271,700 | 2,200 |
| From $ 1,200,000 | 4,800,000 | 58,000 |
| All Real Estate Type | 3,400,000 | 39,300 |
LAND
| Price Segment | Average Cost of land plots/$ | Average Cost Sq.m/$ |
| Luxury property from $560,000 | 27,500,000 | 1,800 |
| All land Plots | 20,200,000 | 1,500 |
And to open a wider field of investment more than 53,000 new units will be commissioned in 2022-2023.
Let us give you more details based on the best areas to buy apartments in Dubai in 2022
APARTMENTS (Avg. Price Range)
| AREA | PRICE |
| BUSINESS BAY | AED 1.1M |
| DOWNTOWN DUBAI | AED 2.4M |
| JUMEIRAH VILLAGE CIRCLE | AED 657k |
| DUBAI MARINA | AED 1.5M |
| DUBAI CREEK HARBOUR | AED 1.9M |
| ARJAN | AED 617.9k |
| PALM JUMEIRAH | AED 2.9M |
| SOBHA HARTLAND | AED 1.2M |
| AL FURJAN | AED 627.3K |
VILLAS (Avg. Price Range)
| AREA | PRICE |
| JABAL ALI FIRST | AED 2.4M |
| ARABIAN RANCHES iii | AED 2.7M |
| MADINAT AL MATAAR | AED 1.8M |
| VILLANOVA | AED 1.6M |
| AKOYA OXYGEN | AED 1.2M |
| DUBAI HILLS | AED 4.4M |
| TILAL AL GHAF | AED 4M |
| EMIRATES LIVING | AED 2.8M |
PLOT (Avg. Price Range)
| AREA | PRICE |
| AL FURJAN | AED 2.3M |
| JUMEIRAH PARK | AED 4.1M |
| AKOYA OXYGEN | AED 1.3M |
| ARABIAN RANCHES I | AED 5.8M |
| THE VILLA | AED 4M |
| JUMEIRAH VILLAGE TRIANGLE | AED 2.7M |
So the above-mentioned data gives you a better picture of the current price of a home in Dubai where one can move further with the investment decision and plan for the property. Other than this, if the concern is to earn monthly rental, then 10,000 AED is a good amount to generate passive income, and this amount may vary depending on the location and type of property you opt for.
Now let us take you to the second concern- The Complete cost of buying a house in Dubai because other than the actual price of the property there is a hidden cost too which is important to be unveiled.
Upfront Fees For Ready Property
This is a mandatory fee that you need to pay to the Dubai Land Department (DLD).
- DLD fee is 4% of the property value
- Fees of AED 520 for issuing the Title Deed
- AED 4,200 admin fees to be to DLD
And as the property must be registered with the DLD within 60 days of the transaction and if it is not then the purchase will be counted invalid. In theory, the 4% charges should be paid by both the buyer and the seller, though in reality, the buyer pays the entire fees to DLD.
Upfront Fees For Off Plan Property
When you buy an off-plan property in Dubai, the 4% cost of buying the property is applicable, so the buyer has to bear this fee in both cases be it ready property or off-plan.
Apart from the above cost, AED 5,250 along with 4% value for the issuance of an Oqood Certificate and is mandatory that showcases the property are registered under the name of the buyer in RERA. And 25% payment of the property should be paid in advance.
Additional Cost To Consider
1. Initial Deposit
For both ready and off plan property, the mortgage price needs to be paid by the buyer, and this initial deposit secures the purchasing rights in the name of the buyers.
2. Mortgage Fees
- Fee for bank Mortgage Arrangement- 1% of the property’s loan amount + 5% VAT
- Fee for property Valuation- AED 2,500 to AED 3,500 + 5% VAT
Those who wish to cover the cost of buying property in Dubai need to pay the mentioned fee to the bank.
3. Service Fees
Apart from the above cost, according to the RERA Service Charge and Maintenance Index, buyers need to pay an amount of DLD for maintenance of the property, and fees are calculated as per the area of the property per square foot.
The maintenance includes a community area, swimming pool, parks, security, water, lift, and more amenities that are accessible.
4. Insurance Fees
Though it is not considered an important part of Dubai, still recommended for property buyers, it is basically in regards to any damage or loss due to any occurrence, natural disaster, or theft.
- Home and Contents Insurance- AED 1,000
- Life Insurance- 0.4-0.8% per annum on the decreasing loan balance.
Bottom Line
Considering the cost and extra expenses together, Dubai compared with 28 cities is cheaper that opens up a way for investors to be a part of the successful property where you are clear about the current price of Dubai and the complete cost including fees and other charges.
And for more lucidity on this and to find out the top range property options Dubai Housing will be a great support as it ensures 100% assistance and is committed to offer lucrative deal which is best in Dubai.
