Since the real estate market in Dubai offers a diverse selection, from beachfront villas to opulent penthouses and townhouses, apartments are a popular choice for buyers and investors. There are no restrictions on investment and buying apartments in Dubai, regardless of whether you are a resident or a visitor. When preparing to purchase a real estate property in Dubai, you should consider the fact that the total cost of the entire property (house, apartment, cottage, etc.) consists not only of the price of this property itself but also of various associated costs, which when added up can become a sizable portion of the total amount.
Therefore, these costs must be considered while making property purchases. A global consultancy Knight Frank report adds that the average property price increased to AED 1,235/square foot in October 2021 from AED 1,021/square foot recorded in January of the same year. However, the location of an apartment also affects its price.
Calculating the Total Costs
Calculating the Total Costs
In addition, the total includes expenses for lawyers and conveyancing, loan processing, property valuation, etc. The Dubai Land Department costs, mortgage registration fees, real estate registration fees, real estate agent fees, and additional legal/lawyer fees related to purchasing and selling apartments are all included in this. All of this can account for 7–10% of the apartment's overall cost.
To avoid unpleasant surprises throughout the transaction, it is therefore imperative that you have a thorough understanding of the buying process before you begin. The official websites of the Dubai Land Department (for Dubai) and the official portal of Abu Dhabi are where you can find information on buying an apartment in Dubai (for Abu Dhabi).
Example of purchasing AED 1 million worth of apartment
Example of purchasing AED 1 million worth of apartment
If the apartment has a price tag of AED 1 million (approximately USD 270,000), In this scenario, the buyer is required to make a 25% down payment as a condition of applying for a mortgage (in our case, AED 250,000 or USD 67,500). Additionally, the extra expense for completing all registration processes in this instance amounts to about 10% of the entire cost, or AED 100,000. (USD 27,000).
Consequently, you should set aside the initial AED 350,000. (USD 94,000). Saving AED 48,000 (USD 12,960) per year for the following seven years is one strategy to build such a sum (the collection period can be reduced by increasing the annual amount of savings).
You must have a specific understanding of this issue in order to calculate correctly and choose the best option. You can hire a specialized consulting firm's services if you do not want to study this on your own. Foreigners who purchase residential property in Dubai for more than AED 1 million (USD 271,000) are eligible to get a resident visa (one of three possible ways to achieve this document).
We at Dubaibulls.com hope that this blog gives you a general idea of how to calculate the total cost of buying an apartment in Dubai. And you have to consider the costs mentioned above before preparing the finances of the apartment. Nevertheless, we are here to help you calculate the total price of the property you want to buy in Dubai. All you have to do is visit our website and get in contact with us.