Dubai Real Estate – Everything You Need To Know In 2023
In this article, we cover everything you need to know about the Dubai Real Estate market.
We answer some of the most commonly asked questions and cover all the main aspects of buying and owning real estate here in Dubai.
There is no doubt that Dubai is a truly global city that has come an incredibly long way in just the last 20 or so years. A business and tourism hub it’s now one of the most visited and often most talked about cities in the world.
The result of this incredible rise and a progressive attitude towards investment has seen the Dubai real estate sector grow from strength to strength and become home to some of the most iconic buildings and most luxurious villas anywhere on the planet.
Types Of Residential Real Estate Available in Dubai
There are 3 main property types found in Dubai. These include apartments, townhouses, and villas.
Apartments – Generally ranging from Studios to 4 Bedroom options found in low, mid, and often high-rise apartment buildings. Apartment buildings tend to be located all over Dubai and especially in densely populated communities popular with expats.
Townhouses – Townhouses are terrace-type homes. They are multi-story (usually two) and share at least one and sometimes two exterior walls with an adjacent property. Bedroom options usually range between 3 and 5 beds and all options come with private gardens.
Villas – Whilst they do come in different shapes and sizes villas are the largest property type found in Dubai. They are standalone properties meaning they are completely separate from any other buildings. Just like they tend to be larger in size the land they sit on also tends to be significantly bigger when compared to townhouses. Bedroom options for this property type range from 3 and can go as high as 10 or more.
Dubai Real Estate Developers
Dubai is home to a vast range of property developers of all shapes and sizes. Some of these are publicly listed companies, others are government backed and some are private. Here is a list of some of the biggest players in the market today.
EMAAR Properties – Dubai’s biggest real estate developer responsible for some of the city’s best known projects and communities.
Nakheel – A government backed company Nakheel is best known as master developer of the Palm Jumeirah.
Ellington Properties – A priely owned develoepr with an outstanding reputation for quality and design.
Omniyat – A developer of ultra luxury projects in some of Dubai’s sought after locations. Developer of highly regarded One Palm and Opus developments.
Who can buy Property in Dubai
The short and simple answer to this question is – Everyone.
Dubai is a truly global city that’s open for business in every way including real estate. This means that whether you are a citizen, expat, or even a tourist you have the ability to purchase property in Dubai. There are no restrictions of any kind and the best part is that the fees for doing so are the same for all buyers regardless of status.
Cost of Owning a Property in Dubai
The cost of owning a property in Dubai will depend on the type of property. As most properties are built within apartment buildings or villa communities there are ongoing costs that do apply. These are often referred to as “Service or Maintenance” fees and are paid towards the upkeep and maintenance of the building or community the property is located in.
Generally speaking, apartment buildings are more costly to maintain, and therefore apartments tend to have higher “Maintenance” fees as opposed to villas or townhouses.
Cost of Buying a Property in Dubai
Whilst this may be a surprise to a lot of potential buyers the cost of buying property in Dubai is on the lower side when compared to most western cities.
| Fee Type | Fee Description |
|---|---|
| Dubai Land Department (DLD) | 4% of the property purchase price + AED 580 admin fee |
| Property Registration Fee | AED 4,000 + 5% VAT |
| Mortgage Registration Fees | 0.25% of the loan amount + AED 290 (only applicable for mortgage buyers) |
| Real Estate Agent Fees | 2% of the property purchase price |
Please note, all costs are paid at the time of purchase and only once.
To keep things simple, anyone looking at purchasing Dubai real estate should budget 6.5% of the total property price towards fees. Put simply a property with a price of AED 1,000,000 will have an all-inclusive cost of AED 1,065,000.
Cost of Selling a Property in Dubai
Just like there is no tax there is also no selling fees when selling a property in Dubai.
All the advertising costs are covered by the selling agent or agents who charge their fees to the buyer via an agency fee. It is worth nothing that some sellers may choose to pay the selling agent a small percentage of the property purchase price as commission. This is usually done as an incentive and way to get the very best price possible.
Dubai Real Estate Prices
Possibly the most important consideration for the majority of would-be buyers – How much is a property in Dubai? The answer to this question depends on a number of factors most notably what and where you are buying.
To keep things as simple as possible, below is a price summary for all three property types in what would be considered an average or as it is often referred to a “middle income” area:
Please note, the above table represents what is roughly the average cost for each property type and category. Dubai real estate prices do vary so there are of course some cheaper and some much more expensive options.
See – Dubai Real Estate Prices for a full price breakdown by community and property type.
Dubai Property Tax
It’s a well-known fact that Dubai is a tax-free haven with no income tax whatsoever. In fact, it’s a big reason why so many expats choose to move to Dubai in the firs