The real cost of buying property in Dubai

The price on the listing is not what you pay. Buying property in Dubai costs roughly 6–8% on top of the purchase price in one-off fees — and, critically, most of these cannot be added to your mortgage. Here is every cost itemised, with a full worked example, so there are no surprises on transfer day.

How much does it really cost to buy property in Dubai?

Budget for the purchase price plus about 6–8% in transaction costs if you're paying cash, or a little more if you're financing. The biggest single item is the Dubai Land Department transfer fee at 4% of the price. The costs that catch buyers out are the ones that can't be folded into a mortgage — they must be paid in cash on the day, on top of your down payment. Below is the full breakdown, then a worked example.

The one-off purchase costs, itemised

1. The 4% DLD transfer fee — the big one

The Dubai Land Department charges 4% of the purchase price, plus a small admin fee (around AED 580), to transfer ownership and issue your title deed. On an AED 1.5M property that's AED 60,000. In practice the buyer usually pays it in full, though it's occasionally negotiated to be split with the seller. This fee cannot be financed — it comes from your own cash.

2. Agency commission — 2% + VAT

The standard brokerage commission is 2% of the purchase price plus 5% VAT on the commission. On AED 1.5M that's AED 30,000 + AED 1,500 VAT = AED 31,500. A good advisor earns this by getting you the right property at the right price and steering you clear of costly mistakes.

3. Trustee and registration fees

The transfer is completed at a DLD-registered trustee office, which charges roughly AED 4,200 for properties above AED 500,000 (about AED 2,100 below that). Add a small title-deed issuance fee.

4. Mortgage costs (if you're financing)

Financing adds three items: mortgage registration at 0.25% of the loan amount + AED 290 (paid to the DLD); a bank arrangement/processing fee commonly up to 1% of the loan (plus VAT, sometimes discounted or waived on promotions); and a property valuation of around AED 2,500–3,500. You'll also need mandatory life insurance assigned to the bank (a small monthly premium) and usually property insurance. See how the loan itself works in our UAE mortgage guide.

Worked example: a AED 1,500,000 apartment

Here's the full cash requirement for a resident expat buying a ready AED 1.5M apartment with an 80% mortgage (20% down payment):

So on a AED 1.5M property, you need roughly AED 415,000 in cash — the 20% deposit plus about AED 115,000 in fees. Buying in cash (no mortgage) removes the three mortgage items but still leaves the DLD, agency and trustee fees. Run your own numbers instantly with our mortgage calculator, which itemises every line above for any price and buyer profile.

Don't forget the ongoing costs

Buying is one thing; holding is another. Budget for:

• Service charges — billed annually per square foot and hugely variable: roughly AED 10–16/sq ft in low-rise mid-market buildings (JVC, Discovery Gardens), AED 14–24 in mid-market high-rises (JLT, Business Bay, Marina), and AED 25–40+ in premium towers (some Downtown/Sheikh Zayed Road buildings exceed AED 50/sq ft). On a 900 sq ft apartment at AED 18/sq ft, that's AED 16,200 a year. Always ask for the exact figure before you buy — it directly reduces your net rental yield.
• Chiller/district cooling — in many towers, cooling is billed separately (e.g. Empower/Emicool). Check whether it's included in service charges or extra.
• Housing fee — a 5% municipality housing fee based on annual rent, usually collected from the tenant via DEWA bills.
• Property management — if you let the unit and use a manager, typically 5–8% of annual rent.

What about selling costs later?

When you sell, there's no capital gains tax in Dubai. Your main exit cost is the agency commission (typically 2% + VAT) if you use a broker, plus small NOC and admin fees. Some buyers negotiate who pays the DLD fee on the onward sale. The absence of capital gains tax is a major reason Dubai's after-tax returns compare so well globally — more on that in our guide to whether Dubai property is tax-free.

Five ways buyers accidentally overspend

• Only budgeting the deposit. The ~6–8% in fees is cash on top — plan for the total from day one.
• Ignoring service charges. Two similar units can have very different annual charges; the higher one quietly erodes your yield for years.
• Not comparing bank fees. Arrangement fees and reversion rates vary widely — the cheapest headline rate isn't always the cheapest deal.
• Skipping the valuation lesson. If the bank values below the agreed price, you cover the shortfall in cash — negotiate accordingly.
• Forgetting VAT on commission. The 5% VAT on the agency fee is small but real; include it.

Every purchase is slightly different. Send us your target price and we'll give you a precise, itemised cost sheet — and, if you're financing, the sharpest mortgage to go with it.