Why is Dubai real estate priced so much cheaper than other real estate markets in the United Kingdom developed countries?
If you compare it to other places and countries, Dubai’s real estate is a lot cheaper. Why? Although real estate is rapidly improving, the costs and charges present are completely lower than that in the UK, US, and Japan. Of course comparisons are made, and people cannot believe how low prices are with respect to great locations and properties. This could be because of cheaper labor, lower building costs, lower additional charges and no levies…
The properties here are definitely very much lower priced than when compared on an international level. This is also because the land prices and values here are very cheaper when compared to its western areas. So as a result, non-nationals or foreigners can afford to invest in high-end properties by paying lower costs.
The costs
When buying a property directly off-plan from the developer, the cost you pay is totally transparent. Your agent will generally be paid a commission by the developer, and you will not be responsible for this. It is only in the case of resale property that fees to real estate agents, and profits to sellers, come into consideration.
An agency fee of 3 per cent of the Net selling price is standard, however this can drop to as 1 per cent, depending on the type of property and the value of the overall purchase. Remember, no cost should be hidden in a property deal. Demand complete transparency from your agent from the start.
Additional costs include ownership transfer and registration with the appropriate Land Department: On purchase, the buyer will pay a transfer of contract cost. This is generally 2 per cent (but ranges from one to eight per cent) of the original price of the property. However, this varies, depending on the developer. Post-purchase and completion, there will also be an approximate cost of 1.5 per cent to register your property with the Land Department.
