All the Hidden Costs of Living in Abu Dhabi
When planning a move to Abu Dhabi, the first number you typically focus on is the annual rent. While this is the most significant expense, a true financial plan requires you to look beyond the monthly or yearly lease amount. A number of essential, and sometimes unexpected, costs can add up quickly. Understanding these “hidden” expenses is key to a smooth and stress-free relocation. This guide will walk you through all the costs you need to budget for before you even get the keys to your new home.
1. Agency Fees
Working with a real estate agent is standard practice in Abu Dhabi, and their expertise is invaluable. However, this service comes with a fee, typically a one-time payment equivalent to 5% of the annual rent. This fee is usually paid upon signing the tenancy contract and is a mandatory part of the rental process for most properties.
2. Security Deposit
Similar to a security deposit in other parts of the world, this is a refundable amount held by the landlord to cover any potential damages to the property during your tenancy. In Abu Dhabi, the security deposit is usually 5% of the annual rent for apartments and can be up to 10% for villas. While this money is returned to you when you move out (provided there’s no damage), it’s a significant upfront cost that you must budget for.
3. Tawtheeq Registration Fees
Tawtheeq is the official tenancy contract registration system in Abu Dhabi. It’s a legal requirement that protects both the landlord and the tenant. The registration process itself incurs a fee, which can range from AED 100 to AED 200, depending on the property type. Additionally, many agents or property management companies will charge a service fee to handle the registration on your behalf.
4. Utility Setup Charges
Getting connected to electricity, water, and cooling services is another crucial step. The Abu Dhabi Distribution Company (ADDC) handles these services. Before you can activate your services, you’ll need to pay a refundable security deposit to ADDC. This is a necessary step to ensure your home is ready for you to move into and the amount varies depending on the property type.
5. Moving & Relocation Costs
The cost of moving your belongings can vary widely. If you are relocating from another country, you’ll need to budget for international shipping and customs clearance. If you are moving within the city, you should factor in the cost of hiring a professional moving company.
6. Internet & Home Services
Once you’ve settled in, you’ll need to set up your home internet, television, and landline phone services. Providers like Etisalat and Du offer a range of packages, often with an initial setup fee and a monthly subscription cost. It is advisable to research these packages beforehand to find one that fits your needs and budget.
A Comprehensive Financial Checklist
To ensure a seamless move, here is a simplified checklist of the costs you should be prepared for:
- Agency Fee
- Security Deposit
- Tawtheeq Registration Fee
- ADDC Security Deposit
- Moving Expenses
- Initial Internet/TV Setup Fees
By budgeting for these expenses from the beginning, you can ensure your transition to your new home in Abu Dhabi is as smooth and predictable as possible.
