Property developers don’t all stick to one pricing model. One project might have stage payments, while another needs everything up front. Some buyers like paying along the way, others prefer a lump sum. It’s smart to check exactly what you’re paying for before you sign anything.
Percentage-based fees:
In many projects, new developers Dubai apply a percentage fee based on the total cost of the development. This covers their role in coordinating planning, design, construction, and legal steps. The percentage may vary depending on project size, location, and level of involvement. It is usually agreed upon before the project begins and stated in the service agreement.
Fixed service charges:
Some developers charge a fixed amount for specific services. This method works well for projects with clear timelines and set duties. The fee may include tasks such as obtaining permits, organising site works, or preparing sales materials. A fixed fee gives both parties a defined cost from the start.
Project management fees:
When developers take on a project on behalf of landowners or investors, they may charge a project management fee. This is calculated based on time, effort, and resources involved. The payment can be monthly or tied to stages of construction. These fees reflect the work of coordinating different teams and keeping the project on schedule.
Profit share agreements:
In some cases, developers enter into a profit-sharing arrangement with landowners or financial backers. Instead of charging a fee upfront, the developer receives a share of the profit after completion and sale. This method depends on market conditions and is usually detailed in a joint venture contract.
Marketing and sales charges:
Developers often include charges related to marketing, sales events, and agent commissions. These costs may be included in the total price or listed separately. It covers printed materials, advertising, and support for real estate agents during the sales period.
Legal and administrative fees:
A portion of the cost may cover legal and administrative work. This includes preparing documents, managing contracts, and dealing with registration. These fees are sometimes billed as part of the overall package or itemised in the financial breakdown.
Payment schedule and milestones:
Most charges from developers are tied to project milestones. Payments may start at project approval, followed by construction stages and final delivery. The schedule is usually included in the agreement to provide clear timing and expectations.
