What it really costs to buy property in Dubai, with a real example

Want your own numbers? Use the Dubai buying cost calculator: enter the price and how you’re paying, and see every fee.

The short answer: on top of the price, budget about 6 to 7% if you’re buying with cash, and about 8 to 10% with a mortgage. Most of it is the 4% Dubai Land Department transfer fee and the agency commission. Dubai has no annual property tax, but service charges and a housing fee apply once you own.

The costs every buyer pays

• DLD transfer fee: 4% of the price. By market convention the buyer pays it, at the trustee office on transfer day. It can’t be added to a mortgage.
• Trustee office fee: about AED 5,250 (AED 5,000 + VAT) for most properties, paid at the trustee office on transfer day.
• Title deed and DLD admin fee: about AED 580 for a ready property.
• Agency commission: commonly 2% of the price plus 5% VAT on resale purchases.

Extra costs if you use a mortgage

• Mortgage registration (DLD): 0.25% of the loan amount plus AED 290.
• Bank arrangement fee: usually up to 1% of the loan plus VAT. Some banks waive or reduce it.
• Valuation: typically AED 2,500 to 5,000 plus VAT, paid before the bank approves the loan.

A real example: an off-plan resale

Here are the actual transfer costs on a recent AED 8.8 million off-plan villa resale, a cash purchase:

Because it was off-plan, the buyer also paid the seller what they had already paid the developer, and took over the remaining instalments to handover. Our guide to how off-plan resale payments work explains that part.

Buying off-plan from a developer

The 4% DLD fee still applies, though some developers run offers that cover part of it. You’ll also pay a registration fee for the off-plan contract (Oqood). Always ask exactly which fees are included in a launch offer before you pay a booking deposit.

Once you own it

• Service charges: paid yearly to the owners’ association, based on size and community. Check the current rate before you buy.
• Housing fee: collected by Dubai Municipality through the utility bill, linked to the property’s rental value.
• No annual property tax.

Umar’s take

The costs are predictable. What catches people out is cash flow: the 4% and the commission are due on transfer day, in addition to the deposit or down payment. Before you make an offer, I’ll give you a one-page breakdown of every dirham due and when, like the example above, so there are no surprises at the trustee office.

General information, not legal or financial advice. Fees change; confirm current figures before you commit.