Question: I bought an off-plan unit in Dubai South and my handover is expected later this year or the beginning of next. The developer is now mentioning additional fees like connection charges, admin fees and other costs that weren’t made clear at the start. Is this normal and what should buyers expect to pay at handover? JE, Sharjah
Answer: This is a very real situation and it catches many first-time off-plan buyers off guard. Most buyers focus on the payment plan and assume the final instalment is the end of the story. In reality, handover comes with additional costs that are often not explained properly at the sales stage.
At handover, buyers typically need to budget for Dubai Land Department registration fees (if not already paid), title deed issuance, Oqood conversion, and then practical costs such as Dewa connection deposits, chiller registration (if applicable) and service charge payments in advance. Some developers also require an initial reserve fund contribution, which is meant to support long-term building maintenance.
The important thing to note is this: Not all extra fees are automatically legitimate. Buyers should carefully review their sales and purchase agreement (SPA) as it should clearly outline what is payable and when. If the developer introduces vague charges that are not specified in the contract, you have every right to request justification and written breakdowns.
In the current market, developers are under pressure to maintain margins and some will try to recover additional costs through administrative add-ons. But Dubai’s regulatory environment is far more mature than it was when I first came to Dubai and buyers should not feel powerless. If a fee isn’t in the contract, it can certainly be questioned.
My advice is always to plan for handover costs early. Even if your unit is Dh1.5 million, the final completion stage costs can easily run into tens of thousands of dirhams. Buyers who budget properly avoid panic decisions and that’s how you protect yourself financially in an off-plan market.
(This question came before the US-Israeli war with Iran began)
Q: I own a studio in Downtown and I’ve been renting it short-term through a holiday home company. Last year it did well, but now I’m seeing more competition and occupancy feels weaker. I'm keen to understand the market dynamics, so I wanted to know your opinion on whether you think that the holiday home market is becoming oversupplied and does it still make sense compared to looking for a long-term tenant? MJW, Abu Dhabi
A: This is a very timely question because Dubai’s holiday home market is definitely in a huge growth cycle and with that growth comes a new reality where competition is much tougher. Some years ago, short-term rentals were a niche advantage. Today, they are mainstream and in certain areas like Downtown, Business Bay, JBR and Dubai Marina. There are simply far more units competing for the same pool of tourists and business travellers.
The short-term market is still profitable, but it is no longer effortless. Owners must understand that the income is not just rent per night multiplied by 30. You have cleaning costs, furnishing replacement, utility bills, management fees, DTCM licensing requirements and seasonal fluctuations. Summer months can be brutal for occupancy unless pricing is adjusted intelligently.
Another important factor is that hotel competition is stronger, too. Dubai has a huge pipeline of hospitality supply and hotels often drop rates aggressively during low seasons. When that happens, holiday homes must either compete on price or offer something unique such as better views, better interior design, or larger living space.
My view is that holiday homes still work best for well-located, well-finished units in lifestyle districts. But for many owners today, long-term leasing is becoming attractive again because it offers stability, less wear and tear and predictable income. The smartest investors are now comparing both models carefully, not assuming Airbnb is automatically the best route. Dubai is still a fantastic short-term market, but it’s no longer a set and forget strategy.
