In Dubai, developers include the full balcony in BUA figures. However, balcony space is non-livable in the traditional sense — you cannot sleep, cook, or work in it. The Dubai market convention discounts balcony area by 25% when calculating effective usable area. For large balconies (120+ sqft), this gap can represent a significant premium paid on paper.
| Item | Annual (AED) | % of revenue |
|---|---|---|
| Run calculation first | ||
| Fee | Rate | AED |
|---|---|---|
| Run calculation first | ||
| Fee | Rate | Who pays | Notes |
|---|---|---|---|
| DLD Transfer Fee | 4% | Buyer | On purchase price, paid to DLD |
| DLD Admin Fee | AED 4,200 | Buyer | Fixed — registration admin |
| Trustee Fee | AED 4,000–5,000 | Buyer | Paid to registration trustee office |
| Buyer Agency Fee | 2% | Buyer | Negotiable |
| Seller Agency Fee | 2% | Seller | Standard market rate |
| NOC Fee | AED 500–5,000 | Seller | Varies by developer |
| Mortgage Arrangement | 1% | Buyer | If using mortgage |
| Property Valuation | AED 2,500–3,500 | Buyer | Bank-required if mortgage |
| DTCM Permit (Airbnb) | ~AED 3,700/yr | Owner | Short-term rental licence |
Minimal wear. Buyers pay premium. Best Airbnb photos. Depreciation is slow — appreciation often outpaces it in prime areas.
First maintenance cycles. AC systems need servicing. Still photogenic. Airbnb stays strong if maintained well.
Visible ageing — lobby, lifts, finishes. Plumbing and AC replacements start. Airbnb ratings begin to dip without upgrades.
Deep discounts vs newer stock. Airbnb harder to compete at premium rates. Higher service charge reserves needed.
Priced near land value. Major structural concerns. Airbnb not viable. Value driven by redevelopment potential.
| Age | Airbnb viability | Expected occupancy |
|---|---|---|
| 0–3 yrs | Excellent | 75–85% |
| 3–7 yrs | Good | 65–78% |
| 7–12 yrs | Moderate | 55–68% |
| 12–20 yrs | Challenging | 40–55% |
| 20+ yrs | Not recommended | <40% |
| Category | Max LTV (first property) | Max LTV (second+ property) |
|---|---|---|
| UAE Resident — property under AED 5M | 80% | 65% |
| UAE Resident — property over AED 5M | 70% | 65% |
| Non-Resident (NRI) | 50% | 50% |
| Off-plan purchase | 50% | 50% |