How moving into a new apartment in Dubai can make your life miserable
The final day of you staying in a shared bedroom is approaching. The salary is better, appetite is higher. From the 1st of the next month, you will be starting a new amazing life in your own apartment with a nice pool and gym. There is only one little problem – how to create a budget for it?
I can see that your cursor is already hovering Search button on Dubizzle website. 1 bedroom, jlt, parking yes, 4 cheques etc. Numbers seem fine so far, maybe because there is a silent depreciation of apartments in UAE. Calculations show that everything fits your budget and you are excitedly calling the agent.
Hi Ma’am, sir no problem at all, we will fix everything. Only 60 000aed and you can move in. We can finish it tomorrow.
Happy and delighted by the simplicity of this deal you start packing your things.
Finally, after 2 years of living with roommates, I can see my freedom, my privacy, my new life. [thinking in youself]
Waving bye-bye to your ex-flatmates, your proud personality is heading to the agency. From the loudness of earphones, people in the metro can hear “Walking on Sunshine ooooo” which is a clear sign that you are happy like never before.
In the agency, everyone is welcoming you like you are some famous cricket player. Coffee ? Tea? Samosa?
Let’s sign a deal. From the back of your bag, you take out the long-awaited contract pen and start sliding it on the paper.
Wait!
BOOOOOOOM
Reality just slapped you in the face.
What is this 5% security deposit?
What is this 5% agency fee? (on a yearly basis)
That will be 2000aed + 2000aed = 4130 (security deposit)
Did I mention the Internet plug? Oh well, if your building is using DU services it will be package + 200aed security + 200aed installation fee.
Oh my God is that all?
Well, you will also need to have Ejari but don’t worry it is for your own safety. It is almost nothing (230 AED).???
Hahaha you are kidding me, right? Is THAT all?
- AED 200 – Connection Fee (DEWA)
- AED 300 – Demand Charge(Empower)
After a small heart attack, you are thinking how it is actually not a bad idea to live with roommates. Why not?
You will never be alone. Someone else will clean your dishes if you are not at home. Cockroaches are not your only friends to live with and so on.
Sad and depressed you go back to home.
Maybe it can wait until next year.
Calculations for the apartment:
It is important to know how things work here. Agency fees and deposits cannot be avoided. Let’s take an example of a simple studio apartment. You can always negotiate, but paying in fewer cheques will be the best option.
Difference between 1 and 12 cheques per year can be around 10k.
Studio – living fees (example) – 50 000aed
- AED 2,500 – Deposit (refundable)
- AED 2,500 – Agency Fee
Other Utilities:
EJARI
- AED 215
DEWA
- AED 2,000 – Deposit (refundable)
- AED 200 – Connection Fee
Empower (Chiller)
- AED 2,000 – Deposit (refundable)
- AED 300 – Demand Charge
Internet Connection Fee
- AED 200 + 200 + Package
Total: ~ 60000k.
Naravoučenije: Always budget for 20% percent more than the real apartment price. Most of the deposits are refundable. Try not to destroy your previous place.
