Dubai’s real estate market continues to attract investors from around the world, thanks to its zero property tax, luxury developments, and high rental yields. But before diving into a property purchase, it’s crucial to understand the various fees involved. This guide breaks down every fee you need to consider when buying property in Dubai—whether you’re an investor, first-time homebuyer, or overseas buyer.

 

Dubai Land Department (DLD) Fee – 4%

The Dubai Land Department (DLD) charges a 4% transfer fee based on the property’s purchase price. This is a mandatory government fee and must be paid to register the property in the buyer’s name.

• Who pays it? Usually, the buyer covers this fee, though in some cases developers may offer to pay it as an incentive.

• Due when? Upon signing the Sales and Purchase Agreement (SPA).

 

Admin Fees for Title Deed Issuance

The admin fees for registering the property vary slightly depending on the property’s value:

• AED 2,000 for properties under AED 500,000

• AED 4,000 for properties above AED 500,000

• AED 250 is also charged for issuing the title deed

 

Real Estate Agent Commission – 2%

Most real estate brokers in Dubai charge 2% of the property’s purchase price as their commission.

• Tip: Ensure the broker is RERA-certified (Real Estate Regulatory Agency). Always verify this before proceeding.

 

Developer’s NOC Fee – AED 500 to AED 5,000

If you’re purchasing a property from a seller (secondary market), you’ll need a No Objection Certificate (NOC) from the developer to register the transfer. The fee varies by developer.

• Purpose: Confirms there are no outstanding dues and approves the transfer.

• Range: Typically between AED 500 to AED 5,000

 

Mortgage Registration Fees (If Applicable)

If you’re financing your purchase with a mortgage, the DLD will charge additional fees:

• 0.25% of the registered loan amount

• Plus AED 290 administrative fee

 

Mortgage Processing Fees

Banks may charge up to 1% of the loan amount as a mortgage processing fee. This varies depending on your bank and the type of loan package.

 

Property Valuation Fee – AED 2,500 to AED 3,500

For mortgage buyers, the bank will require a valuation of the property.

• Cost: AED 2,500 to AED 3,500, plus 5% VAT

 

Trustee Office Fee – AED 4,000 to AED 5,000

This fee is charged for processing the property transfer at an approved DLD Trustee Office.

• AED 4,000 for individuals

• AED 5,000 for corporate entities

• Plus 5% VAT

 

Property Maintenance Fees (Annual)

Not a one-time purchase fee, but important to consider. Developers or building management charge service charges (usually per sq. ft.) to maintain common areas, security, and facilities.

• Varies based on location and development

• Check RERA’s Service Charge Index for transparency

 

Other Optional Costs

• Legal fees (if you appoint a lawyer): AED 5,000–15,000 depending on complexity

• Property inspection fee: AED 1,000–2,500 (highly recommended for resale units)

• Home insurance: Optional, varies depending on provider and property size

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📊 Example Fee Calculation for a Property Worth AED 1 Million

This does not include mortgage processing or annual service charges.

 

Final Thoughts: Budget Beyond the Price Tag

While Dubai offers no annual property tax and high investment potential, it’s important to factor in these upfront fees to avoid surprises. Whether you’re buying for personal use or as an investment, understanding the complete cost landscape ensures a smoother and smarter purchase.

If you’re planning to buy property in Dubai and want expert assistance, Meycon Marketing USA can help you navigate your journey from search to signing.

 

📞 Schedule a Free Consultation
🌐 www.MeyconMarketingUSA.com
📧 info@meyconmarketing.com

 

✅Summary Checklist for Buyers

• ☑️ DLD 4% Transfer Fee

• ☑️ Title Deed Fee

• ☑️ Broker Commission

• ☑️ Developer NOC Fee

• ☑️ Mortgage-related fees (if applicable)

• ☑️ Trustee Office Fee

• ☑️ Annual service charges