The Cost Of Working With Property Developers In UAE

It isn’t easy to find a property developer that can be trusted. There are many different aspects of working with property developers in UAE that you should consider before making any commitments. One of the most significant factors is the cost involved in working with them.

The cost of working with property developers like Ahmadyar developments in UAE can vary significantly depending on various factors. Some of the main factors that influence the cost include:

Developer fees:

Property developers charge fees for their services, which vary based on the type of development. Some developers include these charges in the property price, while others list them separately. These fees cover project planning, construction, legal work, and marketing. In some cases, developers may also charge administrative fees for handling paperwork and approvals.

Property registration fees:

In the UAE, all property transactions must be registered with the Dubai Land Department (DLD) or the relevant authority in other emirates. Buyers need to pay a registration fee, which is usually 4% of the property’s value in Dubai. This fee ensures that the property is legally recorded under the new owner’s name. Additional administrative charges may apply for processing the documents.

Service and maintenance fees:

Once a property is handed over, owners are responsible for service and maintenance fees. These fees cover the upkeep of common areas, security, and building management. The cost depends on the type of property and its location. High-end developments with premium facilities generally have higher service fees. In Dubai, the Real Estate Regulatory Agency (RERA) sets a service charge index that provides an estimate of these costs.

Mortgage and financing costs:

For those purchasing property through financing, banks and lenders charge interest on home loans. Mortgage registration fees in the UAE are typically 0.25% of the loan amount, payable to the DLD. Buyers must also consider valuation fees, processing charges, and early settlement fees if they plan to repay the loan before the term ends.

Transfer fees and agent commission:

When buying or selling property through a developer, transfer fees apply. These fees vary but are generally 2% to 4% of the property price. Additionally, if a real estate agent is involved in the transaction, they usually charge a 2% commission.

Additional charges:

Some developments include extra charges, such as parking fees, community fees, or charges for additional amenities like swimming pools and gyms. Developers may also charge for modifications or customisation of the property before handover.