Buying a Home in Dubai? Here’s What It’ll Actually Cost You!
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So, you’re planning to buy a property in Dubai. Perhaps it’s a sleek apartment in Downtown or a spacious villa in Jumeirah. Whatever your pick, there’s something important you need to know—the sale price is not the final price.
Many first-time buyers look at the listing price and assume that’s all they’ll need to pay. But in reality, there are several additional charges that come with buying a ready (already built) property in Dubai. These can range from official government fees to agent commissions and hidden administrative charges.
At GenZone, we’ve helped hundreds of clients make informed decisions about real estate investments in Dubai. And today, we’re going to walk you through every single cost you need to factor in—so you can budget smart, avoid surprises, and buy with confidence.
1. Purchase Price – The Starting Point
Let’s begin with the obvious: the sale price of the property.
Say you’re buying a 1-bedroom apartment in Business Bay for AED 1.775 million. This is your base price—but it’s just the beginning. What comes next are additional fees, most of which are mandatory and must be paid upfront, often on transfer day itself.
2. The Dubai Land Department (DLD) Fee – 4% of the Property Value
This is the biggest fee you’ll encounter. The DLD imposes a 4% transfer fee on all property sales. This amount is paid by the buyer (unless agreed otherwise in the contract).
For a property worth AED 1.775 million:
DLD Fee = AED 71,000
This fee is a one-time charge and must be paid at the time of property transfer. It legally registers the property in your name and is non-refundable.
3. DLD Admin Fees – The Smaller Add-Ons
In addition to the 4% DLD fee, there are smaller admin charges:
Title Deed Issuance Fee: AED 250
Innovation Fee: AED 10
Knowledge Fee: AED 10
Mortgage Registration Fee (if applicable): 0.25% of the loan amount + AED 290 admin fee
If you’re buying with a mortgage, factor in an extra AED 4,500–7,500 depending on your loan amount.
4. Real Estate Agent Commission – 2% + VAT
If you’re using a real estate agent (which most buyers do), expect to pay:
2% of the sale price + 5% VAT
In our AED 1.775M example:
Agent Commission = AED 35,500
VAT = AED 1,775
Total = AED 37,275
This fee compensates the agent or brokerage that helped you find the property, schedule viewings, negotiate the price, and handle documentation. While some try to avoid this by doing private deals, a professional agent can save you time, money, and stress.
5. Mortgage Fees (If Applicable)
If you’re taking a mortgage, you’ll encounter a few extra costs:
a. Bank Processing Fee
Usually 1% of the loan amount + 5% VAT.
For an 80% mortgage (AED 1.42M), the fee is around AED 14,200 + VAT.
b. Property Valuation Fee
Banks will require an official valuation of the property:
Usually between AED 2,500–3,500
c. Mortgage Registration with DLD
As mentioned earlier, this is:
0.25% of the loan amount
AED 290 admin fee
All of this together can add AED 20,000–30,000 to your upfront costs if you’re financing the property.
6. Trustee (Transfer) Fees – AED 4,000
Every property transaction in Dubai must be completed at an authorized DLD Trustee Office. These centers handle the transfer of ownership officially. For properties priced above AED 500,000, the trustee charges a flat fee of AED 4,000, plus 5% VAT.
So the total is: AED 4,200
This amount is paid by the buyer and is often settled by credit or debit card at the time of the transfer appointment.
7. No Objection Certificate (NOC) Fee – AED 500–5,000
If you’re buying a property from a developer (rather than an individual), you’ll likely need an NOC from the developer stating that they have no objection to the transfer.
Cost: AED 500–5,000, depending on the developer
This amount can sometimes be negotiated or even covered by the seller—but always confirm this before proceeding.
8. Conveyancing Fees – AED 5,000–10,000 (Optional)
A conveyancer is a property lawyer or professional who handles the paperwork, drafts contracts, and ensures all documents comply with the law. While not mandatory, many buyers prefer to hire one—especially when buying a high-value property or if it’s your first time investing in Dubai.
Standard Fee: AED 5,000–10,000
Some real estate agencies include this in their services, so check before paying twice.
9. Service Charges & Maintenance Fees (Annual)
Once the property is yours, you’ll be responsible for annual service charges. These are paid to the building or community management for things like:
Security
Cleaning
Common area electricity
Maintenance
The rate is usually calculated per square foot, with an average of AED 10–25/sq ft.
For a 1,000 sq ft apartment, you might pay AED 10,000–25,000 per year. These are recurring costs and must be budgeted annually.
10. Utilities & DEWA Connection Fees
As the new owner, you’ll need to connect electricity and water services through DEWA (Dubai Electricity and Water Authority):
DEWA Connection Fee: AED 2,000 (refundable deposit) + AED 110 setup fee
Internet, gas, chiller (cooling), and TV subscriptions will be extra and vary based on provider and consumption.
11. Optional: Home Insurance
While not mandatory, home insurance is highly recommended—especially if you’re taking a mortgage, as banks often require it. Costs vary depending on property size, value, and coverage:
Homeowner Insurance: AED 300–1,000/year
Contents Insurance (for personal belongings): AED 500–1,500/year
Real Example: Total Cost Breakdown
Let’s go back to our original example of a ready property purchased at AED 1.775M.
Here’s a rough estimate of the actual costs:
| Item | Amount (AED) |
|---|---|
| Purchase Price | 1,775,000 |
| DLD Fee (4%) | 71,000 |
| DLD Admin & Title Fees | 600 |
| Trustee Office Fee | 4,200 |
| Real Estate Commission (2%) | 35,500 + VAT = 37,275 |
| Mortgage Fees (optional) | ~25,000 |
| NOC Fee | ~2,000 |
| Conveyancing (optional) | ~7,500 |
| Total Fees | ~120,000 – 130,000 |
| Total Cost | ~AED 1.9 million |
Is It Worth It?
You may be wondering—are these fees really worth it?
Well, Dubai continues to offer one of the highest rental yields in the world, with strong demand from residents, expats, and investors. In many cases, you can recover these initial costs within the first few years through rental income or capital appreciation.
Let’s say you rent your unit out long-term for AED 120,000 annually. If your mortgage payment is AED 7,500/month (AED 90,000/year), you’re still earning a net profit—plus you’re building equity each month.
Many buyers also opt for holiday home rentals (short-term Airbnb-style stays), which can generate even higher returns—if managed properly.
Final Thoughts from GenZone
Buying a property in Dubai is a significant milestone, and it’s an investment that can yield long-term financial and lifestyle benefits. But as with any major investment, being informed is key.
The listed price is just the beginning. Factor in an additional 7–10% in fees to avoid surprises, ensure smooth processing, and protect your investment.
At GenZone, we help clients like you navigate the full process—property selection, due diligence, documentation, financing, and even post-purchase support like residency or holiday home licensing. Whether you’re looking to live in your new home, rent it, or add it to your investment portfolio, we’ve got your back.
Ready to Invest?
Book a free consultation with our property advisors today, and let’s help you secure your next asset in Dubai—smartly, safely, and profitably.
