How Much Does It Really Cost to Sell Your Property in Dubai?

When asking how much does sell your property in Dubai, what does it really cost, it is more to do with how much is the listing price. Many homeowners are surprised to find out that there are various hidden charges, government fees, and service costs associated with selling a property in Dubai that are required to be factored in. 

If you are thinking of selling your property and wish to have clarity on the same, then VGT Real Estate in Dubai can guide you through every step. Get in touch today and get you started on your confident process.

Understanding the Basics of Selling Costs

Before you list your home, you should be aware that the Dubai real estate market is heavily regulated. Every trade comes with some associated costs, from the commission paid to the broker to the transfer fees. 

Asking how much does it really cost to sell your property in Dubai means to consider both the mandatory fees as much as the option fees that does speed up your sale or can maximize your returns.

Real Estate Agent Commission

Why It Matters

Most sellers are working with an agent in Dubai, and this comes with a commission fee. Typically, there is a standard commission rate of 2% of the final selling price, albeit where there may be slight variations in regards to commission rates depending on the agency.

Example Calculation

In case your property is sold for AED 2 million, the commission of the agent will be AED 40,000. While this appears to be a substantial expense, having a professional real estate agent is often a more efficient way to quickly sell your home and get a good deal on it.

Dubai Land Department Transfer Fee

The Dubai Land Department (DLD) charges a 4% transfer tax for all property sales. This fee is generally split between the buyer and seller, but is generally borne by the seller (2% duty of the sales price).

For example, if the value in a property is AED 2 million, and the seller’s share of the DLD transfer fee is AED 40,000. This fee is unavoidable, making it one of the most important factors that come into play when asking how much does it really cost to sell your property in Dubai.

Mortgage Clearance Costs

If your property is mortgaged, the loan must be cleared before the ownership can be transferred. The bank charges Early Settlement fee or Mortgage release fees, which usually coming between 0.5% to 1% on the outstanding loan balance.

This cost is often not taken into account, but it can make a big difference to what you make in profit. Always check with your bank prior to starting the sell procedure.

Trustee Office Fees

The transfer of property is required by the Dubai Land Department to be conducted through authorized Trustee Offices. The fee of the trustee office varies from AED 2,000 to AED 4,000 depending on the value of the property.

This is a one-time payment, but it should still be considered when regarding how much does it really cost to sell your property in Dubai.

NOC Fees from Developers

When selling a property in Dubai, the developer will have to issue a No Objection Certificate (NOC). This certificate verifies that you have paid all of your outstanding service charges.

The NOC fee is typically used to ranges depending on allowances of between AED 500 to AED 5000, based on the developer and community. Luxury developments are known to charge greater fees.

Marketing and Staging Expenses

While not required, many sellers will invest in professional photography, staging, or paying for property to list their property for sale so that the property will attract serious buyers. These costs could vary between AED 1000 and AED 10000 according to the service.

Considering the fact that the Dubai real estate market is a competitive one, these optional expenses can help your property stand out and get the sale faster.

Utility and Service Charge Settlements

Before doing a transfer (ownership passing from one person to another) you must have all pending utility bills and service charges settled. This starts with water, electric, and homeowner’s association fees, if at all.

Total Cost of Selling a Property in Dubai

When you are calculating how much it really costs to sell your property in Dubai, expect to pay:

• 2% broker commission
• 2% DLD transfer fee
• Mortgage clearance fees (if any)
• Trustee office charges
• NOC from the developer
• Settlements of utility and service charges
• Optional marketing costs

For an average 2 million Dirham AED property, the operative costs can be upwards of AED 90,000 to AED 120,000, depending on your own unique situation.

Final Thoughts

So, just how much actually does it cost to sell your property in Dubai? While many sellers expect administrative fees in only small amounts, the costs can build up to a significant percentage of the sale price. By knowing what these expenses are going to be from the start you can more readily plan your sale and plan your surprise.

If you are ready to sell your property easily and confidently, VGT Real Estate in Dubai has expert advice, professional marketing, and transparent service. Contact them today and smoothen your selling journey and make it a lucrative one.