The cost of an investment is more than the list price. Which costs apply depends on how you buy — we break down both, item by item.
| Item | Rate | Example — AED 1.1M |
|---|---|---|
| List price | — | AED 1,100,000 |
| DLD transfer fee | 4% | AED 44,000 |
| Oqood registration & admin fees | ~0.5% | ~AED 5,500 |
| Commission / advisory | 2% | AED 22,000 |
| Title transfer & admin fees | ~0.5% | ~AED 5,500 |
| Utilities (DEWA etc.) | paid by tenant | — |
| Total investment | ≈ 4.5% on top | ≈ AED 1,149,500 |
| Total investment | ≈ 6.5% on top | ≈ AED 1,171,500 |
No commission or advisory fee is charged on off-plan purchases. Payments go to the developer's DLD-supervised escrow account.
On resale, commission and title transfer costs are added. In return, the property can be let straight away, so rental income starts from the first month. Electricity and water accounts are opened in the tenant's name and the tenant pays the bills.
Service charges are not fixed. In JBR they rose from AED 12/sqft to AED 18/sqft in two years — about AED 6,000 a year more for a 1,000 sqft apartment. We model this risk separately in our projections.
Gross yield in this scenario is 8.5%; after expenses the exact figure is 7.3%. This scenario describes not the JVC average but a specific 1-bed around AED 1,100,000; the area as a whole includes studios, so the average rent is lower — the ROI Calculator uses the area average (8% for JVC, based on Dubai Land Department records), so the gross figure there comes out lower for the same budget. Because occupancy, service charges and handover year vary, we show a band on screen. It is a net figure after service charges and all operating costs, calculated on the list price; on the total cost including purchase fees (AED 1,149,500) it equals 7.0%. It varies by area, project and occupancy; at the offer stage it is recalculated project by project.
The DLD transfer fee is fixed at 4% and paid to the government. Commission and admin fees vary by project, developer and sales channel. We list these items as separate lines in every offer.
Typically a 5-20% down payment is paid. After that, interest-free payment plans spread over the construction period are available. The money you pay goes not to the developer's own account but into a DLD-supervised escrow account, and is released in stages as construction progresses.
Because they reduce your net yield directly. On a 700 sqft apartment, a service charge of AED 14/sqft means AED 9,800 a year — about 1 point of your gross yield. If it rises to 18, this goes up to AED 12,600. That is why we talk net, not gross.
There is no personal income tax or tax on rental income in the UAE. We recommend reviewing your position in your country of tax residence with your own tax adviser — we do not provide tax advice.
Payments are made by bank transfer to the developer's DLD-approved escrow account. A request for cash or a transfer to a personal account is a warning sign.
We will send — to your email address as a PDF. The full guide can also be read on the website.
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