FGX Realty
The price on a Dubai listing is not what the property costs you. On a typical ready apartment bought with cash, government fees, the trustee office and the agent add roughly 6 to 7 percent, and a mortgage adds more. Here is every line item, who charges it, and a worked example for an AED 2,000,000 apartment bought three different ways.
The fees on a ready (resale) purchase
DLD transfer fee: 4% of the price
The Dubai Land Department charges 4% of the sale value to register the transfer. It is the largest single cost and it does not change with the price band. By market convention the buyer pays all of it, but who pays is negotiable and should be stated in the MOU (RERA Form F). It is paid on transfer day, by manager's cheque or through DLD's electronic payment channels.
Title deed and site plan fees
DLD also charges fixed fees for issuing the new title deed and the property map, plus small knowledge and innovation fees. On DLD's own service page these are AED 250 for the title deed and AED 250 for a building or apartment map, with AED 10 knowledge and AED 10 innovation fees added per item. In practice the total for an apartment or villa comes to about AED 580.
Trustee office fee
Transfers happen at Real Estate Registration Trustee offices, DLD's accredited service partners. DLD lists their fee as AED 2,100 where the price is below AED 500,000 and AED 4,200 where it is AED 500,000 or more. Those figures are AED 2,000 and AED 4,000 plus 5% VAT.
Agent commission: 2% plus VAT
The market standard for a resale purchase is 2% of the price, paid by the buyer to their brokerage, plus 5% VAT on that commission. It is set by agreement, not by law, and is recorded in the buyer-broker agreement (RERA Form B). If you buy off-plan directly from a developer, the developer normally pays the broker, so you pay no commission.
Developer NOC fee
Before a resale can be transferred, the developer issues a No Objection Certificate confirming service charges are paid. Each developer sets its own fee. Commonly quoted fees run from a few hundred to a few thousand dirhams. The seller normally pays it, but some MOUs move it to the buyer, so check.
Extra costs when you use a mortgage
Mortgage registration: 0.25% of the loan
DLD registers the bank's mortgage over the property and charges 0.25% of the loan amount, plus a small fixed fee for re-issuing the title deed with the mortgage noted (DLD lists AED 250 plus knowledge and innovation fees, so most estimates use about AED 290). Register the mortgage on the same day as the transfer: DLD says the registrar's fee is waived in that case, while a mortgage registered the next day attracts a separate service partner fee of AED 4,000 plus VAT.
Bank fees (vary by bank)
- Arrangement or processing fee. Often quoted as up to 1% of the loan plus VAT. Some banks reduce or waive it in promotions, sometimes in exchange for a higher rate.
- Valuation fee. Paid before the final offer. Commonly in the range of AED 2,500 to AED 3,500 plus VAT, depending on the bank and property type.
- Life and property insurance. Banks require life cover on the borrower and insurance on the property. These are ongoing costs, usually added to the monthly payment.
- Early settlement fee. Not a purchase cost, but worth knowing. Central Bank rules cap it at 1% of the outstanding balance or AED 10,000, whichever is lower.
Remember the loan is capped as a percentage of the property's value, and most banks expect the down payment and fees from your own funds. An expat buying a first home under AED 5 million can borrow at most 80%. A second home or investment property is capped at 60%. Details are in our mortgage guide.
Worked example: an AED 2,000,000 apartment
The table below shows the fixed and percentage-based costs for a ready apartment priced at AED 2,000,000, bought with cash, with an 80% mortgage (the maximum for an expat's first home at this price) and with a 60% mortgage (the cap for a second home, and a common level for non-residents). Figures are in AED and exclude bank-specific fees, which follow below.
| Cost item | Cash | 80% mortgage | 60% mortgage |
|---|---|---|---|
| Loan amount | 0 | 1,600,000 | 1,200,000 |
| DLD transfer fee (4%) | 80,000 | 80,000 | 80,000 |
| Title deed and map fees (approx.) | 580 | 580 | 580 |
| Trustee office fee incl. VAT | 4,200 | 4,200 | 4,200 |
| Agent commission (2%) | 40,000 | 40,000 | 40,000 |
| VAT on commission (5%) | 2,000 | 2,000 | 2,000 |
| Mortgage registration (0.25%) | 0 | 4,000 | 3,000 |
| Mortgage deed fee (approx.) | 0 | 290 | 290 |
| Costs before bank fees | 126,780 | 131,070 | 130,070 |
| Down payment | 2,000,000 | 400,000 | 800,000 |
| Cash needed before bank fees | 2,126,780 | 531,070 | 930,070 |
Now add the bank's own charges. Using a valuation fee of AED 3,000 plus VAT and an arrangement fee of 1% plus VAT as a cautious upper case:
| Bank fee (varies by bank) | 80% mortgage | 60% mortgage |
|---|---|---|
| Valuation (AED 3,000 + VAT) | 3,150 | 3,150 |
| Arrangement (up to 1% + VAT) | up to 16,800 | up to 12,600 |
| Cash needed, upper case | about 551,020 | about 945,820 |
On a cash purchase, costs add about 6.3% to the price. With an 80% mortgage, you need roughly 27% of the price in cash on day one, not 20%, once fees are included.
On a cheaper property the fixed items (trustee fee, deed fees, valuation) weigh slightly more as a percentage. On a more expensive one they weigh less, but the 4% DLD fee and the 2% commission scale with the price.
Buying off-plan from a developer
The cost picture changes when you buy a new unit directly from a developer:
- DLD registration fee: 4% of the price, usually paid at booking along with the first instalment, so the developer can register the sale on DLD's interim register (Oqood).
- Registration and admin charges. Expect a modest fixed DLD charge for the Oqood registration and an admin fee set by the developer. The developer's booking statement should itemise both; ask for it before you pay.
- No agent commission and no trustee fee on a standard purchase from the developer.
- At handover: fees for issuing the final title deed, and often service charges collected in advance.
Developers sometimes run promotions that cover part or all of the 4% fee. Treat that as a price discount and compare it against the unit price and payment plan. Our guide to off-plan payment plans shows when the 4% falls due under common structures.
If you buy an off-plan unit from an existing investor before handover (an assignment), DLD charges 4% again on the resale price, normally paid by the buyer. The seller usually pays the developer's NOC or transfer fee. A broker's commission applies as on any resale.
What the seller pays
Sellers usually cover the developer NOC fee, the cost of clearing their own mortgage (the outstanding balance, DLD's mortgage release fee and any early settlement fee) and, where they appoint a listing agent, that agent's commission. The full seller side is in how to sell property in Dubai.
Costs after you get the keys
Purchase costs are one-off. Ownership costs are annual and they decide your real return:
- Service charges, set per square foot and approved by RERA. See Dubai service charges explained.
- District cooling or chiller charges in buildings that use them, billed separately from DEWA in many towers.
- DEWA utilities, which also carry the municipality housing fee.
- Maintenance, furnishing and insurance, plus management fees if you rent the property out.
For an investor, these are the numbers that turn a gross yield into a net one. Our rental yields guide shows the calculation.
Frequently asked questions
Is the 4% DLD fee negotiable?
The rate is fixed by DLD. What you can negotiate is who pays it on a resale, and some developers absorb part of it on new launches.
Can I add the fees to my mortgage?
Generally no. Banks lend against the property's value within Central Bank limits, and expect the down payment and purchase costs from your own funds.
Is there VAT on the property price?
Not on a typical residential purchase. Under UAE VAT rules, the first sale of a new residential property within three years of completion is zero-rated and later resales are exempt. VAT does apply to services such as agent commission, trustee fees and bank fees, and commercial property is treated differently.
Is there an annual property tax in Dubai?
Dubai does not charge owners an annual property tax. The recurring costs are service charges, utilities with the municipality housing fee, and insurance.
How do I estimate fees for my own budget?
Take 4% for DLD, about AED 4,800 in fixed registration and trustee costs, 2.1% for the agent including VAT if it is a resale, and for a mortgage add 0.25% of the loan plus your bank's fees. FGX clients can run these numbers in their account with the "Can I buy?" check.
Official sources
- DLD: registering the sale of a mortgaged property (fee schedule)
- DLD: mortgage registration service
- UAE Central Bank mortgage regulations
Next step
If you have a property or price range in mind, an FGX advisor can prepare an itemised cost sheet for that exact deal, including the bank fees on offer at the time. Book a call, or browse current listings to put real numbers on a shortlist.
This guide is general information, not legal, tax or financial advice. Rules and fees change; confirm current figures with the Dubai Land Department or your advisor before you commit.
