Cost of Buying Property in Dubai: Fees Explained

A clear breakdown of the costs of buying property in Dubai: DLD transfer fee, trustee fees, agency commission, mortgage fees and ongoing costs.

The price on the listing is not the only cost of buying a home in Dubai. Most buyers should budget for roughly 6 to 8% of the purchase price on top, and more when using a mortgage. Here is what those costs are and who pays them.

One-off costs when buying a ready property

Dubai Land Department (DLD) transfer fee: 4% of the purchase price, plus a small administration fee
Title deed issuance fee
Trustee office fee for completing the transfer, which depends on the property value and is subject to VAT
Real estate agency commission: commonly 2% of the price plus 5% VAT
Developer No Objection Certificate (NOC): usually paid by the seller
Conveyancing fee if you appoint a conveyancer to manage the transfer

Extra costs if you use a mortgage

Mortgage registration fee with the DLD: 0.25% of the loan amount plus an administration fee
Bank arrangement or processing fee, often up to 1% of the loan
Property valuation fee charged by the bank
Life and property insurance required by the lender
Mortgage broker fee, if applicable

UAE Central Bank rules also mean you need a deposit. For most expatriate first-time buyers of a property under AED 5 million that is at least 20% of the price, and buying costs are usually paid in cash on top of the deposit.

Costs when buying off-plan

Off-plan purchases are registered with the DLD through Oqood, and the 4% registration fee is normally due at the time of booking or soon after. Some developers run promotions where they cover part of this fee. Payments are made into a regulated escrow account in line with the payment plan. Read our off-plan buying guide for more detail.

Ongoing costs of owning property

Annual service charges paid to the owners’ association, set per square foot
Chiller or district cooling charges in some buildings
DEWA utility bills and the housing fee, which is linked to the property’s rental value
Home insurance and routine maintenance
Property management fees if you let the property

Our guide to service charges in Dubai explains how these are set and how to compare buildings.

Worked example

For a ready apartment bought for AED 1,500,000 in cash, the DLD transfer fee is AED 60,000 and a 2% agency fee is AED 30,000 plus VAT of AED 1,500. Add trustee and administration fees and the total comes to a little over AED 95,000, or around 6.4% of the price. Use this as a guide only and ask us for a detailed estimate for the property you are considering.

This guide is general information, not legal or financial advice. Fees, thresholds and regulations change, so please confirm current requirements with our team or the relevant authority before you commit.

FAQs

Frequently asked questions

Who pays the DLD transfer fee in Dubai?

By market convention the buyer pays the 4% transfer fee, although buyer and seller can agree otherwise in the MOU.

Is there VAT on residential property in Dubai?

The sale of residential property is generally exempt or zero-rated for VAT, but VAT applies to services such as agency commission and trustee fees.

Are there annual property taxes in Dubai?

There is no annual property tax on homes, but owners pay service charges and residents pay a housing fee through their DEWA bill.

How much deposit do I need for a mortgage?

Expatriate first-time buyers usually need at least 20% for property under AED 5 million, with higher deposits for more expensive and second properties.