The Hidden Costs of Buying a Property in Dubai

So you've found the dream property in Dubai—maybe it’s a sleek city apartment or a villa in a serene family community. You’re ready to buy, and the listed price looks doable. But hold on. While the asking price is your starting point, the true cost of property ownership in Dubai often involves a list of fees and payments many buyers don’t initially factor in.

Whether you're purchasing a secondary (resale) property or buying off-plan from a developer, here’s what you need to know before you sign on the dotted line.

1. Dubai Land Department (DLD) Fees – 4%

This is the most significant cost outside of the purchase price. The DLD charges a 4% transfer fee on the property value, paid upfront. This applies to both off-plan and secondary properties and must be paid to officially register the property in your name.

Note: Most developers pass this cost on to the buyer in off-plan sales, unless they’re running a promotion that covers part or all of the DLD fee.

2. DLD Admin Fees
In addition to the 4%, there are also minor administrative costs payable to the Dubai Land Department:

• AED 580 for title deed issuance
  
  
• AED 4,200 for trustee office service (can vary slightly depending on the trustee center)

3. NOC Fees (Secondary Market Only)
When buying a secondary property, you’ll need a No Objection Certificate (NOC) from the developer to proceed with the transfer.

• NOC fees range from AED 500 to AED 5,000, depending on the developer and the community.
  
  
• This fee is typically paid by the buyer, although in some negotiations it’s split or covered by the seller.
  

4. Agency Commission – Typically 2% + VAT

If you’re using a real estate agent (which most buyers do), expect to pay a 2% commission on the purchase price, plus 5% VAT. While this is standard in the resale market, in off-plan purchases, you’re often dealing directly with the developer, which means no agency commission.

5. Mortgage-Related Fees (If Financing the Property)

If you're taking out a mortgage, there’s a whole set of costs to consider:

• Mortgage registration fee: 0.25% of the loan amount + AED 290
  
  
• Bank arrangement fee: 1% of the loan amount (can sometimes be negotiated down)
  
  
• Valuation fee: AED 2,500–3,500 + VAT, paid to the bank’s valuator
  
  
• Life and property insurance: Compulsory with most banks and adds ongoing costs
  

6. Oqood Registration (Off-Plan Only)

If you're buying off-plan, instead of a title deed, you’ll initially receive an Oqood registration from the Dubai Land Department.

• The Oqood fee is 4% of the property price, similar to the DLD transfer fee—but it's specific to off-plan transactions.
  
  
• Usually, developers handle this on your behalf, but make sure it's clearly stated who is covering this cost.
  

7. Service Charges and Community Fees

After the handover, whether off-plan or resale, you’ll be responsible for annual service charges, which cover building maintenance, security, landscaping, etc. These are:

• Charged per square foot (often AED 10–30 per sq ft depending on the building or community)
  
  
• Payable upfront for the year or quarterly

It’s important to calculate this into your annual ownership costs—especially for large units or villas in serviced communities.

8. Snagging & Inspection (Off-Plan)

When an off-plan property is handed over, it’s highly recommended to hire a professional snagging company to inspect the unit. These services can cost anywhere between AED 1,000–3,000, depending on the size and complexity of the property.

9. Post-Handover Payment Plans (Off-Plan)

Many buyers are drawn to post-handover payment plans. However, it’s important to note:

• You may still be liable for service charges once you take possession—even if you’re still making payments on the remaining amount.
  
  
• These staggered payments often come with admin fees or penalties for late payments, so it’s key to plan your finances carefully.
  

10. Utilities and Move-In Permits

Once the property is yours, you’ll need to activate utilities (DEWA, chiller, internet), which comes with:

• DEWA deposits: AED 2,000 for apartments / AED 4,000 for villas
  
  
• Activation fees and connection charges
  
  
• In many communities, a move-in permit is required—sometimes with fees or specific document requirements

The Bottom Line

Buying property in Dubai is a smart long-term move—but the actual cost of ownership often goes beyond the price tag on the listing. Whether you’re buying your first apartment or investing in a villa, knowing the full picture of fees, deposits, and post-handover charges helps avoid surprises and keeps your budget realistic.

If you're working with a trusted agent or advisor, they should walk you through each of these costs in detail. But if you're early in your property journey, bookmark this list. It'll help you stay one step ahead of the fine print.