What This Means for Property Buyers
Previously, some buyers could roll Dubai Land Department (DLD) and agency fees into their mortgage, reducing their upfront costs. However, a new directive changes this. Now, buyers must budget separately for these expenses in addition to their down payment.
For instance, on a property priced at AED 2 million, the 6% fees total AED 120,000. Buyers will need to pay this amount upfront, along with the standard 20% down payment typically required for mortgage approvals.
Key Dates & Transition Period
The policy came into effect on February 1, 2025, but there’s a grace period for pre-approved mortgages:
- Mortgages Approved Before February 1, 2025: If your loan was approved before this date, you can still include the 6% fees—as long as the property transfer is completed by March 31, 2025.
- Transfers After March 31, 2025: If the transfer happens after this date, buyers must cover the fees themselves, even if their mortgage was pre-approved before February 1.
How This Affects Dubai’s Real Estate Market
This shift could impact property transactions, especially for first-time buyers who now need more cash upfront. Developers and agents may adjust by offering flexible payment plans or incentives to attract buyers.
Meanwhile, mortgage lenders could see a surge in applications as buyers rush to secure financing before the deadlines.
Tips for Buyers Navigating the New Rules
🔹 Plan Your Finances: Budget for the 6% fees early and consult a mortgage expert for a complete cost breakdown.
🔹 Act Quickly: If you have a pre-approved mortgage, aim to finalize your purchase before March 31, 2025, to take advantage of the grace period.
🔹 Negotiate Smarter: Work with an experienced real estate agent to secure the best possible deal on your property.
🔹 Look for Developer Incentives: Some developers may offer fee waivers or discounts to help offset the increased upfront costs.
Final Thoughts
While this regulation promotes responsible lending, it does create new challenges for buyers. Staying informed and planning ahead will be essential.
At Prop Shop Global Real Estate, we’re here to help you navigate these changes and make confident property decisions. Get in touch with us today for expert guidance in Dubai’s evolving real estate market.