Cost of Buying Property in Dubai

Type the purchase price in AED, and say whether the property is ready or off-plan.

Through an agent or direct, in cash or with a mortgage. Each adds its own fees — agency commission, valuation and mortgage registration.

Enter the size in square feet and the RERA-approved service charge rate for the building, which you can look up on Mollak.

See every fee itemised, the total as a percentage of the price, the cash needed to complete, and what year one of ownership costs.

How much does it cost to buy property in Dubai?

Budget 7 to 10 percent of the purchase price on top of the price itself. The largest single item is the Dubai Land Department transfer fee at 4 percent, followed by agency commission at around 2 percent plus 5 percent VAT if you buy through an agent. The rest are smaller fixed amounts: the trustee office fee of AED 2,000 to 4,000, title deed issuance of AED 580, and a developer no-objection certificate of AED 500 to 5,000 on ready property in a managed community. Financing adds a valuation of AED 2,500 to 3,500 and mortgage registration of 0.25 percent of the loan.

Who pays the 4% DLD transfer fee in Dubai?

Legally the fee is split between buyer and seller, but market practice in Dubai often sees the buyer paying it in full. Treat it as a buyer cost when you budget, and treat any split as something you negotiate rather than something you are owed. On an AED 2 million property the fee is AED 80,000, so it is worth raising early in the negotiation rather than at the trustee office.

What fees do buyers forget about in Dubai?

Four in particular. The developer NOC fee, which can reach AED 5,000 on a ready property in a managed community. The title deed issuance fee of AED 580. Mortgage registration at 0.25 percent of the loan, which is separate from the bank's own arrangement fee. And the first year of service charges, which off-plan buyers are typically asked to pay in advance at handover. None of these are large individually, but they land together at completion.

What are service charges in Dubai and how are they calculated?

Service charges fund the shared parts of a building — lifts, lobbies, pools, landscaping and chilled water to common areas. Under Article 25 of Law No. 6 of 2019 your share is the ratio of your unit area to the total area of the development, so it is charged per square foot rather than negotiated. RERA must approve the budget before anything is charged, and approved budgets sit on Mollak, the Dubai Land Department platform. You can look up what a building charges before you buy in it, and very few buyers do.

Do I still pay service charges if I rent the property out?

Yes. Article 16(b) of Law No. 6 of 2019 is explicit that unless the lease says otherwise, the owner pays, and the owner is not discharged if the tenant fails to pay. You can put the tenant's share in the lease if you want one, but the debt remains yours either way. Non-payment is treated seriously: Article 32 gives the management entity a lien on the unit, and after notice the matter can reach an execution judge who may order the unit sold at auction.

Are the costs different for off-plan property?

The fees are broadly the same but the timing differs. For off-plan the DLD fee is paid at the Oqood registration stage rather than at transfer, and there is normally no developer NOC because you are buying from the developer directly. At handover you then face utility connection charges for DEWA, district cooling and gas registration where applicable, and typically the first year of community service charges paid in advance.

How much is the DEWA deposit in Dubai?

Connecting electricity and water requires a deposit with the Dubai Electricity and Water Authority, starting from around AED 2,000 for an apartment and higher for a villa. It is a one-off deposit rather than a recurring charge, and the exact amount depends on the property type and current DEWA policy, so confirm it at the point of connection.