- AX Blog
- Costs of maintaining real estate in Dubai
Dubai legislation is quite loyal to all property owners. For the government, it does not matter what purpose you purchase real estate for. You can use the existing facilities as you wish, you just need to follow the rules of the emirate, for example, paying the necessary fees and obtaining licenses.
The amount of required fees is within reasonable values. And their amount is a small part of the potential income that an investor can receive from rental or resale. We will tell you more about all the possible costs of maintaining real estate below.
Contents:
- Utility payments in Dubai
- Cost of maintaining an apartment in Dubai
- Property taxes in Dubai
- Convenient services for working with taxes in Dubai
- Assistance in maintaining real estate in Dubai
Utility payments in Dubai
Paying for utilities in Dubai is almost no different from a similar process in other countries. The payment amount is calculated from the meters and the area of the object itself. Basic utility expenses include:
- water
- electricity
- conditioning
- garbage removal
If desired, the owner can also connect additional services, which need to be paid separately. Electric stoves are the most popular – gas is practically not used and can be connected by the owner separately.
You can calculate the amount of utility bills yourself using current prices. Water and electricity tariffs at the beginning of 2024 in Dubai are as follows:
| The volume of water used in gallons | Cost of 1 gallon in AED | VAT percentage |
| up to 6,000 | 0,35 | 5 |
| 6,000-12,000 | 0,4 | 5 |
| over 12,000 | 0,45 | 5 |
| Electricity consumption in kWh | Cost of 1 kWh | VAT percentage |
| up to 2,000 | 0,23 | 5 |
| 2,000-4,000 | 0,28 | 5 |
| 4000-6000 | 0,32 | 5 |
Average monthly utility bills will be approximately $150-$200 for a studio or one-bedroom apartment.
All issues related to public services are handled by only one state company – Dubai Electricity & Water Authority (DEWA). If you wish to connect or disconnect your water or electricity supply, you should contact DEWA. This can be done on the company’s website, through a mobile application, or in one of the customer centers.
Regular expenses also include Internet and television. Depending on the chosen tariffs, the price can range from $100 to $200 per month.
Cost of maintaining an apartment in Dubai
In addition to utility bills, apartment owners also need to pay for maintenance services for their existing property. The monthly payment amount is set by the Dubai Land Department. The payment amount depends on several factors:
- the area in which the complex is located
- housing class
- object area
- floor
- availability of a terrace
The average monthly payment is $4-6 per square meter. Payment for maintenance of the apartment is made immediately for a year in advance, which will be approximately $2880-4320 for an apartment with an area of 60 square meters. The funds collected are used for the support and maintenance of public areas on the territory of the complex, security, and cleaning.
Property taxes in Dubai
The tax situation in Dubai is quite favorable. There is no real estate taxation throughout the country. When buying an apartment, a townhouse, or a villa, the new owner only needs to pay a small government fee. There is also no annual tax fee for existing real estate as well as income tax. These rules apply to all investors and owners, regardless of whether you are a resident, an expatriate, or an UAE national. There are only several required fees, with a fixed amount.
| Administrative fee when purchasing real estate | 150$ |
| Registration fee when purchasing an apartment | 550$ |
| Registration fee for purchasing a villa | 1100$ |
Also, if you plan to engage in short-term rentals, you will need to pay for the appropriate license. We have already talked in more detail about short-term rentals for investors in one of our previous articles.
Convenient services for working with taxes in Dubai
You don’t even have to leave your home to pay utilities, additional fees, and taxes. All government agencies work very successfully online, offering mobile applications and websites to users. A convenient solution for property owners is to install the following applications:
- MPay
- EasyPay
- DEWA
Assistance in maintaining real estate in Dubai
The owner must independently pay all expenses for maintaining the apartment. This also applies to investors who rent out their properties. AX CAPITAL specialists are ready to offer assistance in the purchase, sale, and rental of real estate, as well as its maintenance. Contact our specialists and they will provide you with all the necessary assistance in working with real estate.