← Insights · Guides · 29 May 2026
The Real Cost of Buying Property in Dubai: A Full Breakdown
Dubai has no annual property tax and no capital gains tax, one of its biggest draws. But buying still carries one-off costs, and underestimating them is the most common mistake we see. Here is the honest, full breakdown on top of the purchase price.
The Dubai Land Department (DLD) fee, 4%
The largest cost is the DLD transfer fee of 4% of the property price, paid at registration. On a AED 2,000,000 property that is AED 80,000. There is also a small Admin/registration fee (a few thousand dirhams, scaled to the property value).
Agency fee, typically 2%
The buyer's agency commission is usually 2% of the purchase price + VAT. A good agent more than earns this through negotiation, due diligence and a smooth transaction, but you should always know the figure up front.
Trustee / registration office fee
The transfer happens at a DLD-approved trustee office, which charges a fixed fee of roughly AED 4,000-4,200 + VAT, depending on the property value.
If you use a mortgage
Financing adds a few costs: a bank arrangement fee (around 1% of the loan), a mortgage registration fee with the DLD (0.25% of the loan amount + a small admin fee), and a property valuation fee (roughly AED 2,500-3,500).
No Objection Certificate (NOC)
The seller usually pays the developer's NOC fee, but it varies by developer (commonly AED 500-5,000). Confirm who pays in your MOU.
Ongoing costs to plan for
- Service charges, paid per square foot per year to the building/community; the single biggest ongoing cost, and much higher in branded or amenity-heavy towers.
- DEWA (utilities) deposit and bills.
- Property management, a percentage of rent if you let it out.
A worked example
On a AED 2,000,000 ready apartment bought in cash, plan for roughly: DLD 4% (AED 80,000) + agency 2% (AED 40,000) + trustee (~AED 4,200) + admin/registration (a few thousand). That is around 6%+ in one-off costs. With a mortgage, add roughly another 1-1.5% of the loan.
Rule of thumb: budget about 6-7% on top of the price for a cash purchase, and a little more with a mortgage.
Get the exact number before you commit
We give every client a full cost breakdown before they make an offer, no surprises at the trustee office. Send us a property and we'll itemise the true all-in cost, or try our mortgage and yield calculators first.