Buying a completed home in Dubai costs roughly 7–8% on top of the price. The main items are the 4% Dubai Land Department transfer fee, 2% agency commission plus 5% VAT on it, a registration trustee fee of AED 4,000 plus VAT for properties of AED 500,000 or more, and AED 520 in title deed and map fees. Off-plan buyers pay the same 4% DLD fee when the sale is registered (the Oqood), plus AED 20 in DLD fees and an AED 1,000 Oqood registration fee that developers usually pass on, but no agency commission, because the developer pays it. A mortgage adds 0.25% of the loan to the DLD, plus the bank’s own fees.
“What will it actually cost me?” is one of the first questions every buyer asks. Below is the full cost of buying property in Dubai, with the DLD’s own fee figures and real service-charge data from the DLD index.
Key takeaways
- Budget about 7–8% on top of the price for a ready home, 9–10% with a mortgage, and about 4–5% for an off-plan reservation.
- The 4% DLD fee is set by the government. It is not negotiable and cash buyers get no discount.
- Off-plan, my clients pay me nothing: the developer pays my commission.
- Service charges are the cost most buyers under-budget. Three 2026 DLD-index buildings range from AED 17.40 to AED 22.49 per sq ft per year.
- Ask any broker to state in writing what they earn on your deal before you reserve.
What is the DLD 4% fee and who pays it?
The Dubai Land Department charges 4% of the purchase price to register a transfer of ownership. Officially it is 2% from the seller and 2% from the buyer, but by market custom the buyer pays all of it. On a ready property it is paid at the trustee office on transfer day, by manager’s cheque or card. There is no way around it and no discount for cash buyers.
Buying off-plan instead? The same 4% applies, registered through the Oqood. It is paid together with the down payment whenever a payment plan is available, and it is separate from the instalments. See my 10 checks before you sign and the full Dubai buying guide.
What are all the fees on a ready property?
On transfer day everything is settled together at the trustee office.
| Item | Amount | Who pays | Notes |
|---|---|---|---|
| Property price | In full for cash buyers; with a mortgage, your down payment and the bank pays the rest | Buyer | Paid at the trustee office |
| DLD transfer fee | 4% of price | Buyer, by custom | Paid at transfer |
| Title deed and map fees | AED 520 (apartment or villa) | Buyer | Title deed AED 250, map AED 250, DLD knowledge and innovation fees AED 20 |
| Registration trustee fee | AED 4,000 + VAT (price AED 500,000 or more); AED 2,000 + VAT below | Buyer | Trustee office |
| Agency commission | 2% of price + 5% VAT | Buyer | Secondary market; see my fee below |
| Mortgage registration (if used) | 0.25% of the loan + AED 270 | Buyer | Plus a mortgage trustee fee of AED 4,000 + VAT, and bank valuation and arrangement fees |
| NOC from developer | Set by each developer | Seller in most cases | Confirms no outstanding service charges; ask for the exact fee before you sign |
| Conveyancing (optional) | Quoted by the firm | Buyer | Recommended for remote buyers; ask for a fixed fee in writing |
| Electricity and water (DEWA) | Refundable deposit AED 2,000 for an apartment, AED 4,000 for a villa, plus an activation fee of about AED 155 | Buyer | Other utility connections depend on the building |
What are the fees for off-plan?
| Item | Amount | Notes |
|---|---|---|
| DLD fee (registered through Oqood) | 4% of price | Paid with the down payment whenever a payment plan is available; separate from the instalments |
| DLD knowledge and innovation fees | AED 20 | DLD |
| Oqood registration fee | AED 1,000 | Charged to the developer by the DLD; usually passed on to the buyer |
| Broker commission | AED 0 for you | The developer pays my commission, so my clients pay nothing to me |
What do I pay after handover?
- Service charges: paid yearly to the building or community (see below).
- DEWA: a refundable AED 2,000 deposit for an apartment (AED 4,000 for a villa), plus an activation fee of about AED 155.
- Title deed: when the Oqood converts to a title deed at handover.
- Other utility connections, depending on the building.
How much are service charges?
Service charges are the cost most buyers under-budget. They are set per square foot per year by the owners’ association and approved by RERA, and they vary enormously by building. These are three real buildings from the DLD Service Charge Index, printed 13 October 2026, for the 2026 year:
| Building | Area | Service charge (AED per sq ft per year) | About per year on 1,000 sq ft |
|---|---|---|---|
| Binghatti Creek | Al Jaddaf | 17.40 | AED 17,400 |
| The Paragon by IGO | Business Bay | 19.51 | AED 19,510 (parking charged separately) |
| Boulevard Point | Downtown Dubai | 22.49 | AED 22,490 |
These are three buildings, not area averages. The index excludes arrears. Downtown costs about 29% more per sq ft than Al Jaddaf to keep, which is AED 5,090 a year on 1,000 sq ft. Net yield maths should use each building’s own record, not an area guess. You can look up any building yourself on the index by project name or title deed.
What is inside a service charge?
Downtown’s Boulevard Point (managed by Emaar Community Management) charges AED 22.49: general fund 19.53 plus reserve fund 2.96. Utilities are 7.26, maintenance 3.90, services 3.09, master community 2.54, improvement 1.42, management 1.28, insurance 0.39, less income 0.35. Business Bay’s The Paragon by IGO (Mansions Owners Association Management) charges AED 19.51: general fund 19.12 plus reserve fund 0.39, with utilities at 10.52, services 3.69, maintenance 3.06, management 1.17, master community 0.44, insurance 0.31, improvement 0.06, less income 0.13. Al Jaddaf’s Binghatti Creek (listed by DLD as Dubai Health Care City Phase 1, managed by Stealth Owner Association Management Services) charges AED 17.40: general fund 16.46 plus reserve fund 0.94, with utilities at 9.58, services 2.67, maintenance 2.67, management 1.00, master community 0.50, insurance 0.19, less income 0.15. Downtown’s higher bill is mostly its reserve fund (2.96 against 0.39) and master community fee (2.54 against 0.44); Business Bay’s utilities line is higher (10.52 against 7.26).
On a AED 1M, 1,000 sq ft apartment, the difference between AED 12 and AED 25 per sq ft is AED 13,000 a year, which is the difference between a 7% gross yield and a 5.7% net one. Always ask for the current service-charge statement before you sign, and check the building on the DLD’s service charge index.
Looking at a specific building?
Send me the listing on WhatsApp and I will send the service-charge figure from the DLD index for that building.
What does a mortgage add?
Mortgage registration with the DLD costs 0.25% of the loan amount, plus AED 270 in title deed and DLD fees and a mortgage trustee fee of AED 4,000 plus VAT. Banks then add their own arrangement fee (commonly around 1% of the loan), a valuation fee, and life and property insurance.
How much you can borrow is capped by the UAE Central Bank. For expatriates living in the UAE: up to 80% of the value on a first home up to AED 5M, 70% above AED 5M, 60% on a second or investment property, and 50% on any off-plan property. For non-residents there is no separate Central Bank cap; banks typically lend 50–60%.
What is my fee?
On a ready, secondary-market purchase my commission is the standard 2% of the price plus 5% VAT, paid at transfer. On off-plan, the developer pays my commission, so you pay nothing to me.
Hidden costs people forget
- A professional snagging inspection at handover, priced by the size of the unit
- Furniture and white goods: most off-plan units hand over unfurnished
- A power of attorney if you are buying from abroad: notarisation, attestation and legal translation into Arabic add cost and time, so start it early
- Currency transfer margins: on a AED 2M purchase, a 1% spread is AED 20,000. Use a specialist, not a high-street bank
Frequently asked questions
Is the 4% DLD fee negotiable?
No. It is a government fee fixed at 4% of the registered price. Some developers run promotions where they pay it on off-plan launches; it is not a discount, it is a marketing cost.
Is the fee the same in Abu Dhabi?
No. This guide covers Dubai only. In Abu Dhabi the registration fee is 2% of the price, normally split between buyer and seller unless they agree otherwise. Check the fee for your emirate before you compare prices.
Do I pay agency commission on off-plan?
Not to me. The developer pays the broker, so my off-plan clients pay me nothing. Ask any broker to tell you the amount in writing.
Is there property tax in Dubai?
There is no annual property tax and no capital gains tax for individuals. There is 5% VAT on commercial property and on fees. If you own through a UAE company, 9% corporate tax may apply to rental profits above the threshold. Your home country may tax you, so check with an adviser there.
How much should I set aside in total?
Around 7–8% for a ready purchase without a mortgage, 9–10% with one, and about 4–5% for an off-plan reservation, plus the deposit the payment plan requires.
What is the Oqood?
It is the registration of an off-plan sale contract with the Dubai Land Department. The 4% fee is paid at this step, together with the down payment, plus AED 20 in DLD fees and the AED 1,000 Oqood registration fee, which developers usually pass on to the buyer. Read more in my off-plan checklist.
How much are service charges in Dubai?
They vary by building, not by area. In 2026, three buildings on the DLD service charge index charged AED 17.40 (Al Jaddaf), AED 19.51 (Business Bay) and AED 22.49 (Downtown) per sq ft per year. Check the building’s own record before you buy.
Does a cash buyer pay less in fees?
No. The DLD, trustee and title deed fees are the same with or without a mortgage. A mortgage only adds fees.
Talk to Armela
Want the exact numbers for a property you are looking at?
Send me the listing on WhatsApp and I will send back a one-page cost sheet for that exact unit, including the service charge.
Sources
- Dubai Land Department, “Property Sale Registration”: transfer, title deed, map and trustee fees, accessed 17 October 2026
- Dubai Land Department, “Request to Register the Initial Sale” (off-plan Oqood), accessed 17 October 2026
- Dubai Land Department, “Request for Mortgage Registration”, accessed 17 October 2026
- DLD Service Charge Index, records printed 13 October 2026
- UAE Central Bank, Regulations Regarding Mortgage Loans, as amended 8 April 2020
- DEWA, “Move-in” service, updated 16 May 2026
- Al Tamimi & Co, on Abu Dhabi real estate fees (Resolution 49 of 2018)
Related: Golden Visa through property · About Armela
