What Fees Do You Need to Pay to Buy a Property in Abu Dhabi?

Buying a property in Abu Dhabi is a significant investment, and it’s essential to be aware of the associated fees to plan your budget effectively. Here’s a breakdown of the primary costs involved:

1. Property Registration Fee

• This fee is typically 2% of the property’s purchase price. It is paid to the Abu Dhabi Municipality for registering the property under the new owner’s name.

2. Brokerage Fee

• If you use a real estate agent, expect to pay a brokerage fee, usually around 2% of the purchase price. This fee covers the agent’s services in helping you find and secure the property.

3. Mortgage Registration Fee

• If you’re financing the purchase through a mortgage, there’s a mortgage registration fee, which is 0.25% of the loan amount. This fee is paid to the Department of Municipalities and Transport.

4. Valuation Fee

• For mortgaged properties, lenders typically require a valuation of the property. This fee can range between AED 2,500 to AED 3,500, depending on the property type and the lender.

5. Property Transfer Fee

• This is a small fee paid to transfer the property’s ownership from the seller to the buyer. It usually ranges between AED 1,000 to AED 2,000.

6. Developer Fees

• Some developments charge additional fees for maintenance or community services. These fees vary widely depending on the location and the amenities provided.

7. NOC Fee

• The No Objection Certificate (NOC) fee is paid to the developer to obtain an NOC, which is necessary for the transfer of property. This fee can range from AED 500 to AED 5,000.

8. Utility Connection Fees

• Connecting utilities like water, electricity, and gas to your new property incurs additional costs. These fees vary depending on the utility provider and the type of connection.

9. Insurance Costs

• While not mandatory, it’s advisable to insure your new property. Insurance costs vary based on the coverage and the value of the property.

Summary

Buying property in Abu Dhabi involves various fees, including registration, brokerage, mortgage registration, valuation, transfer, developer, NOC, utility connection, and insurance costs. Being aware of these expenses will help you budget accurately and avoid surprises during the purchase process.

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