By the MgtWell Property research desk. Reviewed for accuracy against official sources.
The headline price is never the full cost. Before you commit, you need a clear picture of Dubai property buying costs: government fees, service charges from trustees and agents, and, if you borrow, bank and mortgage registration fees. This guide lists each fee as of 2026, shows who normally pays it, and works through two examples.
Fees can change, and some vary by developer or bank. Treat the figures below as a planning guide and confirm the final numbers with your agent, developer or the Dubai Land Department (DLD) before signing.
Dubai property buying costs at a glance
| Fee | Typical amount (2026) | Applies to |
|---|---|---|
| DLD transfer fee | 4% of the purchase price | Ready and resale |
| Oqood registration (DLD fee) | 4% of the price, plus admin charges | Off-plan |
| Title deed issuance | AED 580 | Ready units, and off-plan at handover |
| Trustee office fee | AED 2,000 + 5% VAT (under AED 500,000) or AED 4,000 + 5% VAT (AED 500,000 and above) | Ready and resale |
| Knowledge and innovation fees | About AED 10 each | Most DLD transactions |
| Agency commission | Typically 2% + 5% VAT | Ready and resale |
| Developer NOC | About AED 500 to 5,000 + VAT | Resale |
| Mortgage registration | 0.25% of the loan + about AED 290 | Mortgaged purchases |
| Bank valuation | About AED 2,500 to 3,500 | Mortgaged purchases |
| Bank arrangement fee | Often up to 1% of the loan | Mortgaged purchases |
Sources: Property Finder (2026), Resident (December 2025). Figures vary by provider.
The DLD 4% transfer fee
The largest single cost is the 4% DLD fee. On a resale, the law splits it 2% buyer and 2% seller, but the market norm is that the buyer pays the full 4%. Whatever you agree, write it into the Memorandum of Understanding (Form F) signed with the seller.
On off-plan purchases, the same 4% is collected when the developer registers your purchase on the Oqood interim register. Some developers run promotions where they cover part or all of the DLD fee. If you see a "DLD waiver" offer, ask exactly what is covered and get it in the SPA.
Off-plan specific costs
When you buy directly from a developer, the cost list is usually shorter:
- 4% DLD fee at Oqood registration.
- Oqood and developer admin charges. One 2025 consumer guide puts these at around AED 3,000 to AED 5,000. Developers set their own admin fees, so ask for a written breakdown.
- No buyer agency commission in most primary sales, because the developer pays the broker. Confirm this in writing.
- Handover costs later: title deed issuance (AED 580), utility deposits and the first service charge bill.
Learn more about the off-plan registration process in Oqood vs title deed explained.
Ready and resale specific costs
Trustee office fee
Ready property transfers are processed at a DLD-approved Real Estate Registration Trustee office. The fee is AED 2,000 plus VAT for properties under AED 500,000 and AED 4,000 plus VAT at AED 500,000 and above.
Agency commission
Brokers typically charge 2% of the price plus 5% VAT. Commission is negotiable, but always pay it to the licensed brokerage, not an individual.
Developer NOC
The seller needs a No Objection Certificate from the developer confirming service charges are paid. The fee is usually the seller's, but check your contract.
Mortgage costs
If you finance, add:
- Mortgage registration: 0.25% of the loan amount plus about AED 290, paid to the DLD.
- Valuation fee: about AED 2,500 to AED 3,500, often payable even if the loan is declined.
- Arrangement fee: many banks charge up to 1% of the loan, sometimes waived in promotions.
- Life and property insurance required by the lender.
Upfront costs cannot be rolled into the loan, so these come from your own funds. Non-resident buyers should read our guide to Dubai mortgages for non-residents.
Worked example 1: ready apartment, AED 2,000,000, cash
| Item | Amount (AED) |
|---|---|
| DLD fee (4%) | 80,000 |
| Title deed issuance | 580 |
| Trustee office fee (4,000 + VAT) | 4,200 |
| Agency commission (2% + VAT) | 42,000 |
| Knowledge and innovation fees | about 20 |
| Estimated total | about 126,800 |
That is roughly 6.3% on top of the price. Add a mortgage and the total rises, which is why many guides quote 7% to 10% overall.
Worked example 2: off-plan apartment, AED 1,500,000, from the developer
| Item | Amount (AED) |
|---|---|
| DLD fee at Oqood (4%) | 60,000 |
| Oqood and admin charges | about 3,000 to 5,000 (confirm with developer) |
| Agency commission | Usually nil for the buyer |
| Estimated total at purchase | about 63,000 to 65,000 |
| Later, at handover: title deed | 580 |
Both examples are illustrations only. Your actual costs depend on the property, the developer and your bank.
Running costs after you buy
Buying costs are one-off. Plan for ongoing costs too:
- Service charges: set per square foot each year and approved through the DLD. A 2025 guide cites a common range of AED 10 to AED 30 per sq ft, but luxury and branded buildings can be higher.
- Utility deposits: DEWA deposits typically start around AED 2,000 for apartments and AED 4,000 for villas, refundable when you close the account.
- Chiller fees in some buildings.
- Property management if you rent the unit out. See our property management service.
Dubai does not levy personal income tax on rental income for individuals. Your home country may still tax rental income or gains. General information, not tax/legal advice. Speak to a qualified adviser in your country.
Tips to keep costs under control
- Ask for a full cost sheet before you sign anything. A good broker provides one.
- Clarify who pays the 4% on resales and write it down.
- Compare bank fees, not just interest rates.
- Check service charges for the building on the DLD's published index before buying.
- Keep cash for handover. Off-plan buyers often forget the title deed, deposits and first service charge bill.
- Use our calculators to model fees, mortgage payments and yields for your budget.
Frequently asked questions
How much are the total buying costs for Dubai property?
Budget roughly 7% to 10% of the purchase price for a ready property bought with a mortgage, according to industry guides. Cash buyers of off-plan units directly from a developer often pay less, mainly the 4% DLD fee plus admin charges.
Who pays the 4% DLD transfer fee in Dubai?
The 4% fee is legally split 2% buyer and 2% seller, but in practice the buyer usually pays the full 4%. Agree this in writing in the sale contract.
Can I add buying costs to my Dubai mortgage?
Generally no. UAE banks do not finance upfront transaction costs such as the DLD fee and agency commission, so these must be paid in cash.
Is there VAT on buying residential property in Dubai?
VAT at 5% applies to service fees such as agency commission and trustee office fees. Confirm the VAT position of your specific purchase with a tax adviser.
- Property Finder: DLD fees in Dubai (2026)
- Resident: First-time buyer's guide to hidden costs of buying a home in Dubai
- Sotheby's International Realty: A complete guide to Oqood
- Danube Properties: When will you receive your title deed after off-plan payments
Last reviewed October 2026. General information, not financial, tax or legal advice.
