The cost of owning property in Dubai: what to budget for

Separate one-off and recurring costs

Mixing one-off payments and annual costs distorts comparisons. Record acquisition and registration separately from annual upkeep. If you use financing, add its terms as a separate section.

Ask for a document or current calculation supporting every significant item. Figures from an old presentation may not apply to the specific building or transaction date.

Building service charges

For apartments, shared-area maintenance charges and other mandatory fees matter. They depend on the specific property and management rules. Check current information in the management company’s documents and available DLD tools, including the Service Charge Index.

Confirm what is included, payment frequency and any additional obligations. More amenities may mean higher costs.

The reserve people often overlook

Furniture, appliances and finishes need renewal. For rentals, allow for possible vacancies and costs between tenants. If a management company handles the property, include its contract terms and fees separately.

• Routine upkeep and utility bills.
• Appliance servicing and a repair reserve.
• Management and tenant finding, if required.
• Insurance and financing, on your chosen terms.

Returns depend on the assumptions

Rental income before costs is not the owner’s net return. For an initial comparison, model several occupancy and cost scenarios. Do not treat a forecast as a promise of future results.

Check the period used to calculate returns, the costs included and the assumptions behind the forecast. Request a detailed calculation if the underlying data is insufficient.

Keep a calculation you can verify

For each cost in your table, record the amount, currency, period, source and verification date. This makes it easier to update your budget after a viewing and retain important clarifications during negotiations.