Dubai Real Estate: Checks and Balances

Not only you can expect a premium on the capital value in case you want to sell the property but can also start getting regular revenues in the form of monthly rentals, in case you rent your asset. However, in order to maintain a healthy bottom line over your property investments, you must take into account the costs you have to incur towards acquiring and maintaining a property, one-time or on recurring basis.

Brokerage:

If you enter a property transaction through a consultant, you have to pay brokerage charges anywhere between 2 and 6 per cent. You must fix the brokerage charges prior hand before making any deals to avoid disagreement at later stages.

Running Costs:

As a property owner, you are required to pay an annual service charge to the developer for providing civic amenities and maintaining public facilities such as parks, swimming pool, auditorium etc. The costs differ from project to project and you should confirm it with the concerned authority before committing your property for certain amount of rent. These charges may be levied on annual or monthly basis.

Tax Implications:

The Emirate of Dubai does not enforce property tax. Income that you generate out of renting a property in Dubai is also tax-free. Perhaps, that is why investing in Dubai Properties makes sense for long term investors. However, in order to register your property ownership with the Dubai Land Department, you need to pay the registration charge of 2 per cent on the purchase price paid by you. If the property is financed by mortgage, you have to pay 0.25 per cent of the mortgage amount, in addition.

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