How much does it cost to maintain a property in Dubai

When buying a property, we do not always think about how much it will cost to maintain? Especially when it comes to a different country, where there are completely different laws and regulations.

Let's talk about Dubai, where real estate sales have been breaking all imaginable and unimaginable records for the third month in a row. Dubai attracts people from all over the world, offering great business and living opportunities, a first-class lifestyle and security. It is these components that make it more and more popular to live and work here.

Another indisputable advantage to live in this country is the favorable tax policy of the state. In the Emirates, unlike the majority of other countries, there is no annual property tax, and this fact itself can be considered a good funds saving. In addition, there are no taxes on inheritance and gifting in the country.

Housing is sold out already at the stage of construction. Buyers show great interest in projects with the best living conditions, unique opportunities, environmental friendliness and safety. Preference is given to properties with a developed internal infrastructure and a prestigious location of residential spaces.

When it comes to the cost of living, Dubai gives residents the opportunity to choose whether to live an affordable or luxurious lifestyle! Your expenses are completely in your hands and depend on your preferences. Whether you choose luxury accommodations in Dubai's coastal areas, or opt for economical and affordable accommodations in suburban or older areas of the city.

Among the main expenses that affect the cost of living in Dubai are rental expences, groceries and utilities. If it’s more or less clear with rent and goods, then it’s worth talking about utility bills in more detail.

How much will it cost the future owner to maintain a property in Dubai?

As we have already noted, real estate in the UAE is not taxed. But you must pay state and registration fees when buying real estate and transferring property ownership. Payment is made at Dubai Land Department (DLD).

All expenses for the maintenance and service of the acquired housing are borne by the new owner from the moment of purchase.

The entire cost of real estate can be conditionally divided into two parts - these are payments for maintenance and payments for utilities.

Service charges

Owners are required to pay annual fees for the upkeep of the building. These fees are developed by the Dubai Land Department (DLD), calculated according to the local index (Real Estate Regulatory Authority, RERA) and depend on the category of property, area of ​​the premises, building specifics and area in which it is located, floor, presence of a terrace, etc. The rate varies from 3 to 30 AED (from 0.82 to 8.17 $) per month per square meter. The amount includes payment for the maintenance of the house, security, maintenance of elevators and the surrounding area, cleaning of swimming pools, etc

Utilities expenses

The amount of monthly utility bills is calculated based on meter readings at the tariffs of the Dubai Electricity and Water Authority (DEWA). According to DEWA, one person on average consumes about 590 liters of water and 20,000 kWh per year.

The amount also depends on the type of accommodation and the season. For example, if you have a luxurious villa with a swimming pool, a terrace with a garden and a lawn, air conditioning, etc., then the consumption of water and electricity, especially in summer, will be much higher, and the payment will increase accordingly. Moreover, if the Authority Office records excessive consumption of water or electricity, the tariffs will increase.

Due to the hot climate, Dubai does not require pay for heating, but you will have to pay for a centralized air conditioning system. The more floors in your building, the higher the payment.

In addition, the owner of the apartment will have to pay for the maintenance of the infrastructure: swimming pool, gym, recreation areas, game rooms and other services.

The average bill for internet and TV is between $130 and $280 per month.

As for real estate insurance, this is a voluntary matter. The amount of standard insurance starts from $ 200 per month.

Summing up, it turns out that the maintenance of real estate in the UAE is still inexpensive, and this is one of the reasons to call the country an ideal place for investment.

Kalinka Team is always ready to advise you on any issue related to business, real estate and relocation in the UAE, provide support at any stage, as well as offer a suitable investment or for personal use property in the UAE.