How Much Does it Really Cost to Buy a Home in Dubai?

I think we have all heard by now about the newest and hottest project to hit Dubailand with villas starting under AED 1,000,000.  The integrated lifestyle project by Nshama, a private developer, is called Town Square and it will spread on over 750 acres with a central community center, 16 football fields, a Vida Hotel and over 350 retail stores, restaurant and cafes.How much does it really cost to buy a home in Dubai

The first phase of residential will offer consumers the choice of 3 or 4 bedroom townhomes starting at AED 999,888.  ADIB, First Gulf Bank and Noor Bank have joined forces with Nshama to offer mortgages on this project.

So, let’s figure out how much it will cost to purchase an off-plan townhouse with a purchase price of AED 999,888.  Here is the breakdown:

                                                       Mortgage Fees

Bank Valuation 999,888
Max LTV 50%
Mortgage Value (50% of 999,888) 499,944
Mortgage Processing Fee (%) 1%
Mortgage Processing Fee (1% of 499,944) 4,999.44
Mortgage Valuation Fee 3,000

 

                                                      Transaction Fees

Agent Fee (2% of 999,888) 19,997.76
Pre-Registration (Oqood) Fee (4% of 999,888) 39,995.52
Property Registration Fee (4% of 999,888) 39,995.52
Mortgage Registration Fee (0.25% of 499,944) 1,249.86
Knowledge Fee 10

 Total Fees                                                                                    AED 109,351.06

It is essential to know when buying a property in Dubai, how much you will actually have to pay, in addition to acquiring a mortgage.  On ezEstate, we have created a very useful tool to calculate Transaction Fees and Charges, whether it’s for an off-plan project or ready property in Dubai.  Check it out here now!

 

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