What Does It Actually Cost to Buy a Property in Dubai?
Beyond the property price itself, Dubai buyers should budget approximately 7–8% in transaction costs for an all-cash purchase, and 9–10% for a mortgaged purchase. The largest single cost is the 4% Dubai Land Department (DLD) transfer fee. Agency commission is typically 2% plus VAT. Mortgage registration, trustee office fees, NOC fees, and title deed issuance make up the remainder. Below is a complete line-by-line breakdown with a worked example.
The Full Cost Stack
| Cost | Amount | Paid To |
|---|---|---|
| DLD transfer fee | 4% of purchase price + AED 580 admin | Dubai Land Department |
| Title deed issuance | AED 580 | DLD |
| Agency commission | 2% of purchase price + 5% VAT | Broker agency |
| Trustee office fee | AED 2,000 (≤ AED 500k) or AED 4,000 (> AED 500k) + VAT | Registration Trustee |
| No Objection Certificate (NOC) | AED 500 – 5,000 | Developer / community |
| Mortgage registration (if financed) | 0.25% of loan amount + AED 290 | DLD |
| Mortgage processing | ~1% of loan amount | Lender |
| Property valuation (mortgage) | AED 2,500 – 3,500 | Bank-appointed valuer |
| DEWA connection | AED 2,000 (refundable deposit) + AED 110 activation | Dubai Electricity & Water Authority |
Worked Example: AED 2 Million Apartment, Cash Purchase
| Item | AED |
|---|---|
| Property price | 2,000,000 |
| DLD transfer fee (4%) | 80,000 |
| DLD admin + title deed | 1,160 |
| Agency fee (2% + 5% VAT) | 42,000 |
| Trustee office (AED 4,000 + VAT) | 4,200 |
| NOC fee (estimate) | 1,500 |
| DEWA connection | 2,110 |
| Total cost | 2,130,970 |
| Total fees above price | 130,970 (≈ 6.55%) |
Worked Example: AED 2 Million Apartment, 75% Mortgaged
| Item | AED |
|---|---|
| Property price | 2,000,000 |
| Deposit (25%) | 500,000 |
| Mortgage amount | 1,500,000 |
| DLD transfer fee (4%) | 80,000 |
| Mortgage registration (0.25% + 290) | 4,040 |
| Mortgage arrangement fee (1% of loan) | 15,000 |
| Valuation | 3,000 |
| Agency fee (2% + VAT) | 42,000 |
| Trustee office | 4,200 |
| NOC | 1,500 |
| DEWA | 2,110 |
| Total upfront | 651,850 + mortgage balance |
| Fees above price | 151,850 (≈ 7.6%) |
Off-Plan Purchases — A Different Cost Profile
Off-plan purchases shift some costs to handover. Typical structure:
- Down payment: 10–20% at Sales & Purchase Agreement (SPA) signing
- Oqood registration (interim title): AED 3,000 + 4% of down payment to DLD
- Construction milestone payments: paid into developer escrow on RERA-verified triggers
- On handover: remaining balance + final DLD transfer fee + 2% agency fee (if applicable)
Some developers absorb the 4% DLD fee as an incentive on off-plan launches — ask for the fee waiver before signing.
Ongoing Costs After Purchase
| Cost | Typical Range |
|---|---|
| Service charges | AED 10–35 per sq ft per year |
| DEWA (electricity + water) | AED 300–1,200/month |
| District cooling (if applicable) | AED 400–1,500/month |
| Property management (if rented) | 5–10% of annual rent |
| Landlord insurance | AED 1,000–3,000/year |
FAQs
What is the DLD transfer fee in Dubai?
4% of the property purchase price plus AED 580 in admin fees. Paid at the Dubai Land Department on the day of transfer.
Who pays the agency commission in Dubai?
In Dubai, the buyer traditionally pays the 2% + VAT agency commission. Some off-plan transactions shift this cost to the seller/developer.
Can the DLD fee be financed?
Some mortgage products allow the DLD fee to be added to the loan amount. Most buyers pay it cash at transfer.
Are there any tax costs on Dubai property?
No. There is no annual property tax, no capital gains tax, and no income tax on rental income for individuals. This is a defining feature of Dubai as an investment destination.
Get a Full-Cost Estimate for Your Budget
We prepare itemised cost breakdowns for every property we recommend — including all fees, mortgage scenarios if applicable, and ongoing costs over a 5-year holding period. Request your cost estimate.