What are the features of real estate taxes in the UAE?

Property taxes in the United Arab Emirates have their own unique features. In this country, there is virtually no annual property tax, but apartment owners are required to ensure that they pay a contribution similar to the management fee for an apartment building, as is common in Russia or Belarus. These funds are used to support all basic infrastructure services of the building, including cleaning of common areas, maintenance, possible major repairs and maintaining the availability of sports and playgrounds.

Amount of contributions

The amount of such fees varies and is set by the developer depending on the size of the apartment and the specific features of a particular complex. On average, homeowners pay from14.6to58.7dollars per square meter. For example, if we consider a residential complex in Jumeirah Lake Towers (JLT) with an apartment with the area of60 square metersthen the annual maintenance fee will be approx.35 dollarsper square meter. Thus, the amount to be paid per year will be approx.$2,100..

Owners don't have to worry about having to file tax returns because all contributions are deducted automatically from their bank accounts.

Charging procedure

It should also be noted that in the Emirates the maintenance fee for the residential neighborhood is charged in advance, i.e. a year in advance. This implies that even if the apartment is rented out, the financial obligations for this item remain with the owner.

In recent years, developers have begun to reduce service charges to attract both buyers and tenants. For example, in2020Eleven neighborhoods in Dubai saw a decline in rates in the year, with the biggest drop in the district ofDubai Marinawhere the present value is$20-$25.per square meter, which corresponds to a decrease of by12%.

Investment opportunities

The next step for those interested in investing in UAE real estate is to familiarize themselves with the current offers on the market. One of the interesting options for purchase is an apartment in Dubai at a cost of389,401 euros. It's a living space with an area66 square metersbundledAct One | Act Twofrom the companyEmaarand will soon be ready for occupancy. The property features include:

• one bedroom;
• one bathroom;
• balcony overlooking the boulevard.

Also worth considering are the luxury apartments available in the areaJVTin the new complexFashionzfromDanube. The area of this stylish apartment is137 square metersand they are fully furnished. Investments in such properties can provide high rental income at the level of7.3%in dollars. There is a possibility of interest-free installments, and the commissioning of the object is scheduled for the first quarter of the year2027.

Sobha Reserve Project

Among other things, it's worth considering a projectSobha Reservelocated in the heartWadi al-Safa 2, inIn Dubai LandThis residential complex includes more than300 exclusive villassurrounded by greenery and numerous amenities that perfectly match the natural aesthetic. Each villa has its own pool and garden, creating a unique atmosphere for relaxation and comfortable living.

We invite you to take a look at an unusual apartment that is fully equipped with high-quality furniture and appliances. This residence features modern kitchen devices, built-in wardrobes, and premium plumbing, creating a unique atmosphere of coziness and comfort.

Promising opportunities in the Dubai real estate market

When considering the real estate market in Dubai, it's important to highlight several attractive offers. For example,apartments measuring 70 m²You can purchase for €412,421, offered by dda real estate, and for those looking for something more spacious, there are options with an area of 79 m² for €1,150,491 from metropolitan premium properties.

J One Complex

Special attention is drawn to the unique residential complex.J One, located on the picturesque shore of the Dubai Canal. These apartments offer not only a magnificent view of the famous skyscraperBurj Khalifa...but also the opportunity to take advantage of an interest-free installment plan after receiving the keys. The kitchen here is already fully furnished and equipped with everything necessary, making this property ideal for both permanent living and investment purposes.

In addition, the complex offers a wide range of amenities, including:

• swimming pool
• modern gym
• children's playground
• well-maintained green areas

Spacious housing options

If you are looking for more spacious accommodation, we can also offer:

• Apartments with an area of 265 m² for €5,011,213
• a villa measuring 294 m² for €2,129,784

Inside these objects, there are provisions for4 bedroomsand4 bathroomsThis will provide comfortable conditions for large families. Moreover, when purchasing such housing, it is possible to obtain a residence visa in the country.

Investments with panoramic views

Nature will delight lovers of picturesque views with the opportunity to invest in an apartment withpanoramic windowsto the beautiful lagoon and surrounding infrastructure. This property will create excellent living conditions and also for renting out, with an expected yield of6.3%in dollars. Interest-free installment plans are available here.

Don't miss the opportunity to check out the new residential complex.360 Riverside Crescentfrom the company Sobha, located in the Bukadra area. It features a variety of active entertainment options, such as tennis and badminton courts.

Elite microdistrict Sobha Hartland

In the central district of Dubai, known asMaidenThere is access to apartments within a prestigious residential project that covers an impressive area in8 million square meters, of which 30% is allocated for park areas. The new elite neighborhood Sobha Hartland is located directly on the main highway.Al Khail Roadand just a few minutes from the nearest metro station.

Villas of various levels of comfort

Among the interesting options, there are also villas of varying levels of comfort with different square footage. For example:

• A villa with an area of 377 m² is available for the price of €1,302,919.
• A more spacious villa can be purchased for €1,753,961.
• In Bas-el-Khaim, you can find a villa measuring 360 m² for €2,079,668.

Apartment in Nobles Tower

One of the most notable apartments is the housing inNobles Tower, occupying an area of110 square metersand havingtwo bedroomsand all the necessary furnishings. High-quality amenities make this property an excellent choice for investment with the potential for good returns.

The completion of construction is expected in the third quarter of 2023, and the location near the center of Dubai adds to the appeal of this offer. The high-rise building in Business Bay offers magnificent views of the surroundings, ensuring you a truly enjoyable leisure experience.

Apartments in Dubai

The apartments from Mercury Group in Dubai, priced at 165,000 euros, cover an area of 40 square meters and include one bedroom and one bathroom. Purchasing these apartments provides the opportunity to obtain residency. There is also the option for an online viewing and conducting transactions remotely. Payments can be made in rubles or using cryptocurrency.

Skyhills Residences

Skyhills Residences is a luxurious residential complex developed by HRE Development and Octa Properties, located in Dubai Science Park. The design was carried out by architects from QHC Architects & Engineering and NGS Architects.

This residential complex offers a wide selection of apartments, including:

• studios
• one-bedroom apartments
• two-bedroom apartments
• three-bedroom apartments
• duplexes with three bedrooms

Offers in Abu Dhabi

In addition, there is an apartment offered by Spiridon Real Estate in Abu Dhabi for €221,876, covering an area of 279 square meters, consisting of four bedrooms and three bathrooms. An online showing of the apartment and a remote transaction are also available, with the option to make payments in rubles or cryptocurrency.

Yas Golf Collection

Yas Golf Collection is an elite residential complex located on the famous Yas Island in Abu Dhabi, covering an area of approximately 127,000 square meters. It features stylish studios as well as spacious apartments with:

• one bedroom
• two bedrooms
• three bedrooms

Some two-bedroom apartments are additionally equipped with another room.

Real estate in Dubai

In Dubai, you can find other real estate options as well. For example, there are apartments priced at 976,936 euros, featuring two bedrooms and two bathrooms, with an area of 109 square meters. Additionally, Metropolitan Premium Properties offers townhouses in Dubai for 877,257 euros, with an area of 247 square meters, five bedrooms, and three bathrooms.

When purchasing these properties, it is also possible to obtain a residence permit, have an online viewing, and make remote payments in rubles and cryptocurrency.

Expo Valley

Expo Valley, a luxurious residential complex by Expo City Dubai, is located in the Expo City area and offers magnificent townhouses with:

• three bedrooms
• four bedrooms
• villas with four to five bedrooms

The area of the properties ranges from 247 to 650 square meters.

Utilities in the UAE

The utility system in the UAE operates on a principle similar to Russian standards: bills are generated based on meter readings, and rates depend on the number of residents, the area of the living space, and the time of its use. Most buildings are equipped with a central air conditioning system, while property insurance is optional.

If the housing is rented for a long term, the owners enter into contracts for the supply of utilities, resolving most issues with the tenants.

Utility payments in Dubai

The utility payment system in Dubai has unique traditions and features that are fundamentally different from common perceptions of such services. In this hot climate, heating is generally not required even on cold days, as temperatures rarely drop to critical levels. Instead, residents pay for air conditioning services, which is the norm for comfortable living in this region.

Each district of Dubai has its own centralized cooling system, making it more cost-effective compared to traditional split systems that can be installed in each apartment. Interestingly, the condensate produced by these systems is used for irrigating green areas and public spaces, which further demonstrates the wise conservation of resources.

Utility expenses

Let's take a closer look at the utility expenses. For an apartment with an area of 85 square meters, where two people live, the average monthly utility bill, excluding internet and other expenses, is approximately $180. The base fee for electricity and water supply starts at $50 for one person. As for air conditioning costs, they vary depending on the season and the size of the living space:

• Summer period: $70-$120;
• Winter months: $40-$70.

Don't forget about the additional costs for internet, which will be around $100-$120 per month.

Additional expenses for homeowners.

For those who prefer living in private houses, it's important to consider other expenses as well:

• Maintenance of water tanks - from $130 to $250 per year;
• The maintenance of the garden and pool cleaning costs about $1000 a year.

On specialized Telegram channels, you can find interesting information about investments and immigration in Dubai.

Income in Dubai

Regarding income, it is worth noting that there is no government regulation of minimum or average wages in the United Arab Emirates. However, foreign workers often earn 30-40% less than local specialists with similar qualifications and experience.

Minimum incomes are recorded for seasonal workers and assistants, whose salaries range from $300 to $400. Qualified specialists can expect to earn between $2000 and $2500 per month, while the average salary is around $4500. Higher incomes are typical for professions such as:

• Doctors;
• Lawyers;
• Pharmacists;
• Engineers.

Workers in positions such as cashiers, office assistants, and bartenders earn around $2000-$2500. It's also worth noting that many low-paying job vacancies may include housing, transportation cost coverage, and partial or full coverage of food expenses.

Housing rental

When it comes to the process of renting housing, it also has its nuances. If you plan to rent a one-bedroom apartment in the center of Dubai, you will need to prepare around $1500-$1600 per month, while for a three-bedroom apartment, you will have to pay about $3000-$3200.

Renting apartments outside the city center is more affordable.

• One-bedroom apartments - approximately $1000-$1100;
• Three-bedroom apartments - from $2100 to $2300.

Typically, renting a property is done through a system of four checks, which means prepayment for three months of living. You will also need to pay a deposit, which can range from 50% to 100% of the monthly rent. Owners often offer significant discounts if tenants agree to pay six months upfront.

Differences between developers

An important factor is also the difference between private developers and government organizations in the real estate sector. Many developers use their own methods to attract clients, while others try to avoid certain obligations, which in turn affects the pricing and conditions in the rental and sales market in Dubai.

General information about life in Dubai

In Dubai, you can find many notable aspects regarding apartment living and food prices. For example, the cost of basic groceries is quite reasonable: a liter of milk can be bought for about $1.6, bread costs around $1.4, a kilogram of rice will set you back about $1.9, and a dozen eggs will cost around $2.9.

Meat prices vary: a kilogram of chicken fillet sells for 9 dollars, while beef costs approximately 15 dollars. Speaking of fresh fruits and vegetables, a kilogram of local fruits can cost between 1.5 to 2 dollars, while vegetables will set you back 1 to 2 dollars. Fish at the market costs about 7 to 8 dollars per kilogram. If you are preparing home-cooked meals, the monthly food expenses for a couple will be around 300 to 400 dollars.

Dining and restaurants

Breakfast at an inexpensive café costs around 10 dollars on average, while a full dinner for two people will set you back 60-70 dollars, excluding alcohol. A meal at McDonald's is about 7.6 dollars, and a cup of cappuccino will cost 5 dollars.

Transport and mobile communication

Now let's talk about transportation and mobile communication in Dubai. The cost of public transport ranges from $1.5 to $2, depending on the distance. A monthly pass costs $85. Taxis cost about $0.7 per kilometer. Gas prices in the United Arab Emirates are around $0.5 per liter, and car rental is approximately $400 per month.

If you need a mobile connection with internet, it will cost you 30-40 dollars a month.

Entertainment

Entertainment events also require expenses.

• Movie tickets start at $15-17.
• A visit to the theater will cost between 25 and 30 dollars.
• A gym membership typically costs around 80-100 dollars per month.

For more detailed information about prices for goods and services in the Emirates, you can refer to various resources.

Real estate and rental

Now let's focus on real estate and rentals. According to an analysis by Global Property Guide, the cost of a 120 square meter apartment in the center of Dubai is approximately $710,160, with an average price of around $5,918 per square meter.

If these apartments are rented out at a price of 3 thousand dollars per month, the annual rental income will be 5.2%.

The rental market also has its own peculiarities. Lease terms are very important:

• Good apartments in the city center can be rented for a price ranging from 70 to 80 dollars per night.
• This can significantly increase during the peak season.

Taxes and fees

It's also important to remember about taxes and fees. In Dubai, there is no income tax on rental income; however, a fee of 5% of the rent is charged, which is included in the utility bills. Thus, the tenant pays this percentage along with the costs for water and electricity. For commercial properties, this fee is 10%, but the payment procedure remains the same.

Real estate management

Management companies in the Emirates are usually provided by developers or their representatives. Their work is mainly divided into two categories:

• Maintenance of residential complexes (including cleaning and ongoing repairs).
• Property management (finding tenants, preparing contracts, and monitoring the condition of the property).

Architecture and the real estate market

As for the architecture of Dubai and the real estate market, today there is an oversupply. All these aspects make life in Dubai unique and fundamentally different from other places.

Conclusion

In conclusion, analyzing the property maintenance payment system in the UAE, one can highlight the numerous advantages it offers to owners. The absence of a mandatory annual property tax makes purchasing a home more attractive, especially for those looking for a place to live or invest.

The annual fee, which serves as utility payments, helps maintain high standards of care for residential complexes, which undoubtedly has a positive impact on the quality of life for residents.

Factors influencing the level of contributions:

• The area where the property is located.
• The developer determines the maintenance cost.
• The area of the apartments.

The amounts of each fee vary depending on the area and the developer, which makes the real estate market in Dubai quite flexible and responsive to buyers' demands. Considering the trend of decreasing service charges observed in recent years, there is an opportunity to increase rental yields and attract more investors.

Key points:

• The absence of a mandatory property tax.
• Reduction of service fees in new residential complexes.
• The possibility of long-term investments.

Considering all these aspects, it can be confidently said that the UAE represents an intriguing real estate market that not only offers comfortable living but also actively develops investment opportunities.

Every potential buyer should carefully examine the current offers and research the neighborhoods that meet their requirements. No matter how diverse and enticing the offers may seem, it is important to keep in mind the long-term prospects and one's own interests.

Investment opportunities:

By conducting thorough research and making informed decisions, you can not only find your dream home but also significantly improve your financial position. By exploring the opportunities that Dubai offers, you are not only investing in your future but also becoming part of a rapidly growing market.