Cost of Buying Property in Dubai

The real cost of a Dubai purchase is the price plus transfer fees, trustee and title deed charges, agency commission and, if you borrow, mortgage costs, followed by yearly service charges. For a ready property, budget roughly 7–8% on top of the price and get written quotes before you sign.

Updated 27 October 2026 · 2 min read

The main extra cost is the Dubai Land Department transfer fee of 4% of the price. Add trustee and title deed charges, agency commission (commonly 2% plus VAT), any developer NOC fee and, if you use a mortgage, bank and registration fees. Many buyers end up at about 7–8% on top of the price.

Typical costs for a ready property

Cost Typical amount Who usually pays
DLD transfer fee 4% of the purchase price Buyer (unless agreed otherwise in Form F)
Registration trustee fee AED 4,000 + VAT for properties of AED 500,000 and above; AED 2,000 + VAT below Buyer
Title deed and admin charges A few hundred dirhams Buyer
Agency commission Commonly 2% of the price + 5% VAT As agreed with your broker
Developer NOC Roughly AED 500–5,000 + VAT, set by each developer Usually the seller
Mortgage registration 0.25% of the loan amount plus a small admin fee Buyer (mortgage only)
Bank arrangement and valuation fees Up to 1% of the loan, plus a valuation fee of a few thousand dirhams Buyer (mortgage only)

These figures reflect common practice at the time of writing. Fees change, and who pays which item is set by your contract, so always ask for a written cost breakdown before signing.

Building your budget, step by step

  1. Start with the agreed price

    Note the deposit (commonly 10%) and when the balance is due.

  2. Add the registration costs

    4% transfer fee, trustee fee and title deed charges. These are paid at transfer, usually by manager’s cheque.

  3. Add finance costs

    Mortgage buyers need the bank’s written figures for arrangement, valuation, life and property insurance and mortgage registration.

  4. Add property costs

    Check unpaid service charges, DEWA connection deposits, moving, furniture and any repairs.

  5. Plan the yearly running costs

    Service charges, insurance, maintenance and, if you rent the property out, vacancy and management fees.

Off-plan purchases

Off-plan buyers pay the 4% DLD fee when the purchase is registered in the Oqood (interim) register, plus the developer’s admin charges. Some developers run promotions that cover part of this. The rest of the price follows the payment plan. See off-plan payment plans.

Yearly costs after you buy

There is no annual property tax in Dubai, but owners pay service charges to the owners’ association, set per square foot and published through the Land Department’s service charge index. Tenants and owner-occupiers also pay a housing fee through their DEWA bill.

Common mistakes to avoid

  • Budgeting only for the deposit and price.
  • Relying on an old fee screenshot instead of a current quote.
  • Forgetting the first year of service charges and repairs.
  • Assuming every seller pays the same items: it depends on the contract.

This guide is general information, not legal, tax, financial or lending advice. Fees, rules and procedures change and depend on the property, the parties and the contract. Confirm current details with the relevant authority and qualified advisers before acting.

Browse properties for sale Browse properties for rent

Common questions

What is the DLD fee when buying property in Dubai?

The Dubai Land Department transfer fee is 4% of the purchase price. It is customarily paid by the buyer, although the contract can allocate it differently.

How much is the agency commission in Dubai?

Commission is negotiable but is commonly 2% of the price plus 5% VAT for a resale purchase. Agree it in writing before viewings.

Are there extra costs with a mortgage?

Yes. Expect mortgage registration at 0.25% of the loan amount, a bank arrangement fee of up to 1% of the loan, a valuation fee and insurance.

Is there an annual property tax in Dubai?

No, there is no annual property tax. Owners do pay yearly service charges to their building or community owners' association.

How much cash do I need for a mortgage purchase?

Your deposit (at least 20% for most expatriate buyers of a first home under AED 5 million) plus about 7–8% of the price for fees.

Keep reading

Sources

Still not sure where to start?

Tell us what you are planning and a Habitas Homes consultant will walk you through the next steps.

Talk to our team WhatsApp us