Congratulations on your exciting decision to buy an off-plan property in Dubai! Let’s now discuss the financial elements, which include additional costs you may incur.
The developer will usually ask for two more payments in addition to your down payment:
1) DLD Fee: This fee, amounting to 4% of the total property cost, goes towards the Dubai Land Department.
2) Admin Fee: Though this fee might be called differently depending on the developer, its purpose remains the same – property registration. Once the Sales Purchase Agreement (SPA) is signed and registered with the Real Estate Regulatory Agency (RERA), you, as the buyer, will receive an Oqood document as proof of property registration. Admin fee varies depending on the developer but usually does not exceed 5000 AED.
These fees are mandatory but sometimes developer has a special offer to cover 50% or 100% of DLD fee on behalf of the buyer.
Please keep in mind that if you decide to resell your property during construction or upon completion, the new buyer will be responsible to pay 4% again. DLD fee is collected every time a property is sold.