Calculate every cost involved in buying property in Dubai. DLD transfer fee (4%), mortgage registration, agent commission, trustee fees, NOC charges, your complete purchase cost in seconds.
Many buyers are surprised by the total costs beyond the property price. Here is every fee you need to budget for when buying property in Dubai or the UAE.
4% of property price, paid to Dubai Land Department at time of transfer. Mandatory for all property sales in Dubai, typically paid by the buyer by market convention.
If buying with a mortgage, DLD charges 0.25% of the loan amount to register the mortgage (minimum AED 290). Plus an admin fee of AED 10 per registration.
2% of property price plus 5% UAE VAT. On a AED 2M property = AED 40,000 + AED 2,000 VAT = AED 42,000. Paid to the buyer's agent at DLD transfer.
DLD trustee office fee: AED 4,000 (cash) or AED 5,000 (mortgage). NOC from developer: AED 500–5,000 depending on developer. Property valuation: AED 2,500–3,500.
Understanding the full cost of buying property in Dubai is essential for financial planning. The purchase price is just the beginning, buyers must budget for government fees, professional fees, and financing costs that can add 6–8% to the total outlay.
For mortgage buyers, there are additional costs: bank arrangement fee (0.5–1% of loan), property valuation (AED 2,500–3,500), and buildings insurance (typically AED 500–1,500 per year). Some banks also charge an early settlement fee (1–3%) if you pay off the mortgage before the end of a fixed rate period.
Off-plan buyers typically pay 4% DLD fee (sometimes waived by developer as a promotion), no agent commission, but must budget for service charges from handover and potentially post-handover snagging costs. Always read your SPA carefully for all cost obligations.
| Cost Item | Amount / Rate | When Paid |
|---|---|---|
| DLD Transfer Fee | 4% of price | At DLD transfer |
| DLD Admin Fee | AED 580 | At DLD transfer |
| DLD Trustee Fee | AED 4,000–5,000 | At DLD transfer |
| Agent Commission | 2% + 5% VAT | At DLD transfer |
| NOC from Developer | AED 500–5,000 | Before transfer |
| Mortgage Registration | 0.25% of loan | At registration |
| Bank Arrangement Fee | 0.5–1% of loan | At drawdown |
| Property Valuation | AED 2,500–3,500 | Before approval |
| Buildings Insurance | AED 500–1,500/yr | Annual |
| Title Deed Issuance | AED 580 | At registration |
| Property Price | DLD Fee (4%) | Agent (2%+VAT) | Trustee & Admin | Total Extra Costs | Total Acquisition |
|---|---|---|---|---|---|
| AED 500,000 | AED 20,000 | AED 10,500 | AED 5,000 | ~AED 35,500 | ~AED 535,500 |
| AED 800,000 | AED 32,000 | AED 16,800 | AED 5,000 | ~AED 53,800 | ~AED 853,800 |
| AED 1,000,000 | AED 40,000 | AED 21,000 | AED 5,000 | ~AED 66,000 | ~AED 1,066,000 |
| AED 1,500,000 | AED 60,000 | AED 31,500 | AED 5,000 | ~AED 96,500 | ~AED 1,596,500 |
| AED 2,000,000 | AED 80,000 | AED 42,000 | AED 5,000 | ~AED 127,000 | ~AED 2,127,000 |
| AED 3,000,000 | AED 120,000 | AED 63,000 | AED 5,000 | ~AED 188,000 | ~AED 3,188,000 |
| AED 5,000,000 | AED 200,000 | AED 105,000 | AED 5,000 | ~AED 310,000 | ~AED 5,310,000 |
| AED 10,000,000 | AED 400,000 | AED 210,000 | AED 5,000 | ~AED 615,000 | ~AED 10,615,000 |
Cash purchase estimates. Mortgage buyers add 0.25% mortgage registration fee on loan amount. NOC fees excluded. Figures approximate, verify with your agent and DLD.
Legally, DLD requires 4% to be paid by buyer and seller (2% each). However, by strong market convention in Dubai, the buyer pays the full 4%. Always confirm this in your MOU before signing.
Buyer pays their agent (2% + VAT). Seller pays their agent (2% + VAT) if they used a separate listing agent. In practice, many Dubai transactions involve one agent representing both parties, clarify fee structure upfront.
Seller pays the NOC (No Objection Certificate) from the developer, confirming no outstanding service charges or payments. Costs vary from AED 500 (EMAAR) to AED 5,000+ for some master developers.
Buyer pays all mortgage-related fees: DLD mortgage registration (0.25%), bank arrangement fee, property valuation, and buildings insurance. Total mortgage setup costs typically AED 15,000–25,000.
A 10% security deposit is typical on signing the MOU. This is credited to the purchase price at transfer. If the buyer defaults, they may lose the deposit. If the seller defaults, they return double the deposit.
Outstanding service charges are typically cleared by the seller before NOC is issued. Upon transfer, the new owner assumes future service charge obligations. Always verify service charge status before completing purchase.
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Everything you need to know about buying costs for property in Dubai and the UAE.
For a AED 2,000,000 cash purchase, total costs are approximately: DLD transfer fee AED 80,000 (4%) + DLD trustee fee AED 4,580 + agent commission AED 42,000 (2%+VAT) + NOC approx AED 2,000–5,000 = total additional costs of approximately AED 128,000–132,000, bringing total acquisition cost to approximately AED 2,128,000–2,132,000. Mortgage buyers add 0.25% of loan amount for mortgage registration plus bank fees.
The 4% DLD transfer fee is a mandatory government charge and cannot be reduced or avoided for secondary market sales. Some off-plan developers offer "DLD fee waiver" promotions where they absorb the 4% on behalf of buyers, making these projects more attractive for first-time buyers or those with limited budgets. However, DLD waivers should be scrutinised carefully as developers often embed the cost in their pricing.
Common surprise costs include: bank mortgage arrangement fees (0.5–1% of loan), building/contents insurance, property valuation fee (AED 2,500–3,500), manager's cheque fees from banks (AED 25–50 each, you may need 3–6 cheques on transfer day), connection fees for utilities (DEWA, EMPOWER), and moving costs. Also factor in the first year's service charges from handover, and any renovation costs for properties needing upgrades.
No, the fee structure is the same for all nationalities in Dubai's freehold areas. Foreigners can purchase freehold property in designated freehold zones (including Dubai Marina, Downtown, Business Bay, Palm Jumeirah, etc.). UAE and GCC nationals can also buy in leasehold areas. There are no additional taxes or duties for foreign buyers in Dubai.
Manager's cheques (also called banker's drafts or certified cheques) are bank-issued guaranteed cheques required by DLD for property transactions. Personal cheques and bank transfers are not accepted at DLD. You will need separate manager's cheques for: DLD fee, trustee office fee, agent commission, and sometimes the balance purchase price. Request these from your bank 2–3 business days before your transfer appointment.
The DLD mortgage registration fee is 0.25% of the loan amount, plus an admin fee of AED 290 (or AED 10 per registration). For a AED 1,500,000 mortgage: 0.25% = AED 3,750 + AED 290 = AED 4,040. This is paid to DLD at the time the mortgage is registered, typically on the same day as the property transfer. The registration fee is paid by the buyer/borrower.