FAQ

Service charges in Dubai are recurring fees that are paid by the homeowners for the maintenance and upkeep of residential buildings or communities. They cover different property management aspects such as maintenance, cleaning, security staff, landscaping and general upkeep of the area/building. 

Whether it is a villa or apartment, retail or commercial property, service charges in Dubai are applicable to all types of properties in the city. These fees are charged on a square foot basis and can range anywhere between AED 3 to AED 30 or even more.

This Dubai service charges comparison clearly shows that the recurring service fee for apartments is way higher than that of villas.

On average, based on the Dubai service charges index data, the service charges for villas in Dubai are generally lower than those of apartments. The higher recurring fee for apartments is mainly because most residential buildings in Dubai come with additional facilities – like swimming pools, gyms, elevators and more – that need constant maintenance, in addition to the upkeep of common areas.

By law, each flat has one allocated parking slot marked on the affection plan. Flats of more than 150m2 of area (approx. 1,700ft2) have 2 allocated slots.  with RERA (Real Estate Regulatory Authority) in Dubai did not put down a The area calculation is based on BUA (Built Up Area – Livable space) and excludes balconies and common areas.

RERA (Real Estate Regulatory Authority) in Dubai did not put down a specific rate in regards to commissions. Generally a 5% commission on the total annual rental sum is paid by the tenant.

RERA (Real Estate Regulatory Authority) in Dubai did not put down a specific rate in regards to commissions. Generally a 2% commission on the total purchase price is paid by the buyer in the case of a secondary market transaction and no commission is paid by the buyer when a property is purchased from a developer.

Only the developer pays the broker a pre-agreed commission fee, given that the broker or his company is already registered with the developer, and he has presented a CIL form prior to the sale, unless agreed otherwise between the broker and his client (buyer).

Primarily the broker, agent or developer must have a valid accreditation and license with the Real Estate Regulatory Agency (RERA).

Then you must check if the owner has any outstanding mortgages, whether he lives in the country or abroad, and if he has clear title deed (you must check the original). Check if there is an existing tenant and parking space, if it is reserved and/or very far from the building.

Under Bylaw No. (85) of 2006, commissions & fees to real estate brokers is only to be paid after the contract/MoU is signed. Most brokers charge between 2% of property value to the buyer and 2% to the.

The brokerage commission amount must be agreed and stated in the agreement otherwise it will be as per the market practice.

A 5-year residency visa is granted when an investor purchases a property of a gross value of not less than AED5 mil.

A 2-year residency visa is granted when an investor purchases a property of a gross value of not less than AED1 mil.

The amount invested in real estate must not be on a loan basis and the property must be retained for at least three years.

Alternatively, Dubai Tourism, in conjunction with the General Directorate for Residency and Foreign Affairs (GDRFA) have launched the Retire in Dubai programme, which allows foreign nationals above the age of 55 years to obtain a five-year residency visa, if they own property worth AED 2M (USD 544.5k).

Real Estate Regulatory Agency (RERA) is a government body established in 2017 to regulate the property sector of Dubai. It sets policies and makes plans for Dubai’s property sector to boost foreign investments and settle disputes between tenants and landlords. RERA has administrative independence, enjoys its own financial system and has the full legal authority to regulate Dubai’s real estate sector.

Real Estate Regulatory Agency (RERA) is a common real estate term in Dubai. Launched by H.H Sheikh Mohammed Bin Rashid Al Maktoum, the Ruler of Dubai and Vice President and Prime Minister of the UAE, RERA is a regulatory arm of the Dubai Land Department (DLD). It offers a transparent and effective legal framework to everyone connected to the real estate sector of Dubai.

The agency works hard to develop an online society for tenants, buyers, property developers and real estate investors. It also facilitates supporting sectors such as insurance, law firms and banks in order to boost mutual cooperation.

The primary responsibilities of RERA include:

• Licencing real estate activities and agents in Dubai
• Regulating trust accounts of real estate developers
• Registering and regulating lease agreements
• Supervising the associations of owners managing various buildings in the emirate
• Publishing studies for the property sector
• Supervising property advertisements in the mass media
• Licencing real estate exhibitions to foster national participation in the emirate’s realty sector.
• Informing people of regulatory acts pertaining to buying or renting real estate.

DLD is a government-run entity in Dubai that manages all real estate trading operations in the city, providing customers with a highly integrated, transparent and secure experience.

DLD Services:

Real Estate Registration and Services Sector Through the Al Taboo system, all land rights are documented and retained. The system comprises four sub-systems operating under one umbrella: registry, initial registry, trust accounts, and proof of rights of property owners. The system aims to unify all practices and integration services within a single system, supported by the latest technology and compatible with international standards.

Real Estate Regulatory Agency Whereby DLD sets legislations to regulate the relationship between all contracting parties and organises the exchange process of properties. The department provides many services to clients in Dubai, expanding its roles to planning, organizing, and evaluating operations related to real estate licenses, and the organisation and development of real estate activities, as well as a commitment to monitor projects financially and technically in order to protect investors.

Real Estate Promotion and Investment Management Sector DLD seeks to support national and international real estate investment companies, and develop the real estate investment environment while motivating traffic through the promotion of direct and long-term investments. It also plays an active role in promoting a stable and secure environment, while contributing to the building of a green economy to achieve sustainable development.

Dubai Rental Disputes Center DLD seeks to support national and international real estate investment companies, and develop the real estate investment environment while motivating traffic through the promotion of direct and long-term investments. It also plays an active role in promoting a stable and secure environment, while contributing to the building of a green economy to achieve sustainable development.

Emirates Real Estate Solutions Emirates Real Estate Solutions (ERES) works to find solutions to the e-real estate market based on real estate expertise in the registration at DLD and RERA, and has made more than 300 transactions of best organisation practices in real estate regulation and registration. It was established in 2008 as part of a government initiative from Emaratech Group companies to assist and facilitate the real estate business community.

A person must be of 18 years of age at the time of applying at RERA’s; must have a high school diploma or equivalent; complete the required broker education and pass the broker licensing exam ; complete the broker license application and pay the fees. 

Agreement between 2 or several agents to share commission resulting from a property sale

Agreement between a property buyer and seller

Agreement between the listing agent and the seller

Agreement between a property buyer and Agent

This is the million dollars question, but in fact so many criteria come to mind when it comes to buy a property in Dubai. The first question to ask yourself is why am I buying? For investment? To live in? Based on that a buyer should set his/her priorities, such as proximity to work, children school, trust in developer, re-sale value, part of a community or not, easy road access, service charge fee percentage and much more.

Today most wanted areas are the Palm Jumeirah, Dubai Down-Town, JVC, Dubai Marina and Business Bay.

In September 2013, Dubai Land Department implemented Dubai Executive Council's resolution to increase the real estate registration fees from 2% to 4% + AED 580. The charges are paid by the seller and the buyer equally unless otherwise agreed between the two parties.

Most commonly it is to the buyer to pay the whole 4% to DLD. Some developers do apply full DLD waivers to their customers as part of a marketing strategy to boost sales.

An Escrow Account is a safekeeping account in which funds are deposited by one party (or parties), to be disbursed to another party (or parties) based on fulfillment of certain conditions which govern the Escrow account arrangement. Conditions for operation of real estate Escrow accounts are governed by each Emirate’s Real Estate regulatory authorities. Each end user who buys an off plan property in a development pays into the project’s Escrow account. The funds are not usable by the developer for any costs other than the project construction, consultancy, sales and marketing and land payments. Money will only be disbursed from the Escrow account directly to the project contractor and consultant on completion of each stage of construction and when verified by previously determined experienced engineers. Any other Escrow account disbursements are governed by the Escrow Agreement and respective regulators instructions.

The sum of the floor area of all the floors of a building measured from the exterior walls or from the centerlines of common walls joining two spaces Gross Floor Area (GFA) for FAR Calculation - The sum of usable areas and Circulation Areas equal the gross floor area of a building.

The Floor Area Ratio (FAR) of a building or other structure on any lot is calculated by dividing the gross floor area of a building or structure by the area of the lot on which it is located.

The DM Submission definition of FAR is different from the internationally accepted definition. The DM Submission definition in a measurement of area for FAR calculation includes the following:

1. (Usable Areas)
2. (Circulation Areas) 

The FAR excludes the following:

1. (Balcony Areas)
2. (Service Areas) like  MEP    Shafts   

Exceptions to the above rule:

Lift shaft area is to be counted as B (Circulation Area) for the Ground Floor only. On all other floors, lift shafts shall be considered as MEP Shafts.

Built-Up Area (BUA) is the total constructed floor area of

a building.

When providing BUA calculations to DM the BUA should

be described as the total of the following areas

1. (Usable Areas)   
2. (Circulation Areas)
3. (Balcony Areas)
4. (Service Areas)   
5. (Roof Slab Area)

1. BUA is exclusive of:
   
   MEP Shafts
   
   BUA = A (Usable Areas) + B (Circulation Areas)
   + C (Balcony Areas) + D (Service Areas)
   + (E) Roof Slab Areas