What is the cost of selling property in Dubai?

Cost of Selling Property in Dubai

It is not easy to sell property in Dubai, as some advertisements suggest. Many people think the process involves putting the property online, receiving calls from interested buyers, and settling for an agreement with the best option. But reality is quite different.

If not prepared, it might be quite challenging to deal with the real estate market in Dubai, part of which is understanding how much selling property in Dubai costs.

Here, we would like to detail all the charges taken when selling a ready-to-buy, mortgaged, or still under-construction property in Dubai.

1. NOC Fees in Dubai

Before selling your property in Dubai, you will need a No Objection Certificate (NOC) from the developer. It reflects that a developer has no objection to selling any particular property and gives confirmation of settling due or pending service charges. This makes it smooth to sell property with ease. It typically ranges from AED 500 to AED 5,000 + VAT and is usually borne by the seller.

2. Agency Fees

It is another fee involved with selling a property in Dubai. It is the seller's agent's fee. Although online portals are great, navigating the market with an experienced real estate agent can be a game-changer. They bring their experience and smooth the whole process for a successful sale. They charge a fee known as commission for the services that they provide to achieve the best possible outcome.

For sellers working with real estate agencies in Dubai can significantly increase their property's visibility and attract quality buyers. The selling agents in Dubai usually charge 2% of the property sale price + 5% VAT, unless specified otherwise in the contract.

In Dubai, sellers use Form A, one of the RERA forms to officially appoint a seller's agent. This form also outlines the commission percentage you will pay the agent upon a successful sale.

3. Dubai Land Department Fees

Another fee towards selling property in Dubai that a seller has to consider is the Dubai Land Department fee. This usually stands at 4% of the sale value and is usually shared between the buyer and seller. The fee is paid to the Dubai Land Department, the authority overseeing all real estate transactions in the city. However, this percentage, which is payable by each party, will depend on the sale and purchase agreement between the seller and the buyer.

4. Sales Progression Fees

Both buyers and sellers pay 7,500 AED towards the sales progression fee. The cost of selling your home in Dubai pays for a specialist sales progression officer who efficiently manages the property transfer process on your behalf. Think of this as an investment in the smoothness and efficiency of your transaction, since this is the professional handling all those backstage rounds once you have provided the documents.

5. Transfer of Ownership / Admin Fees

The last fees to sell property in Dubai include the admin or transfer of ownership fee, payable to the DLD’s registration trustee offices. Again, this is one of the costs of selling property in Dubai, which is either paid in full by the buyer or split between the buyer and seller, depending on the agreement.

However, the transfer fee will vary depending on the sale price of the property.

• If the sale price of the property is below AED 500,000: AED 2,100

• If the sale price of the property is above AED 500,000: AED 4,200

Fees to Sell Mortgaged Property in Dubai

While it is possible to sell a mortgaged property in Dubai, sellers can expect additional costs during the process. Aside from the cost of selling a property in Dubai mentioned above, there will be fees for early settlement of the mortgage, blocking the property, and more.

1. Mortgage Release Fees

Sellers with existing mortgages in Dubai may incur this fee if their mortgage is settled before the scheduled completion date. There’s also a separate fee payable to the registration trustee. The mortgage release fee is AED 1,290 for conventional mortgages and AED 1,560 for Islamic mortgages.

2. Early Settlement Fees

As the name suggests, this is one of the charges with respect to selling property in Dubai when the mortgage is settled before time. However, the good news for both homeowners and investors is that the reduced early settlement fees mean a seller only has to pay 1 percent of the outstanding amount or AED 10,000, whichever is lower.

3. Blocking Charges

Sellers selling a mortgaged property in Dubai will incur blocking charges. This fee, typically ranging from AED 1,020 to AED 1,520, is paid to register the property in the buyer’s name for a short period. This protects the buyer’s interest in ensuring the property cannot be sold to another party while they finalize the seller’s mortgage payoff.

Fees to Sell Off-Plan Property in Dubai

Due to the fact that they can allow customized fixtures and top-notch facilities, properties in Dubai are always in demand. If you plan on selling an off-plan property in Dubai, then you need to go over the terms and conditions set by the developer. Sometimes, there may be added costs of selling properties which are in development phase.

Often, there is a developer-imposed fine for selling an off-plan property before completion or before the attainment of a certain milestone in payment, as stated in the plan. In order to avoid these fines, the seller should follow the rules and conditions given by the developer. These vary with different developers, so plan accordingly.