Buying property in Dubai is not only about the price of the apartment, villa or townhouse shown in the developer's or seller's offer. When planning a budget, you also need to factor in transaction costs, registration fees, possible financing costs, the agency commission and administrative fees related to the transfer of ownership.
The good news is that the cost structure in Dubai is relatively transparent. The largest additional cost is usually the Dubai Land Department registration fee, commonly referred to as the DLD fee. In many cases an investor should assume that the total costs of buying property in Dubai may amount to anywhere from a few to over a dozen percent of the property value — depending on whether they are buying an off-plan project from a developer, a ready property on the secondary market, or using bank financing.
Below you will find a practical overview of the most important costs worth taking into account before a purchase.
1.DLD fee — the basic cost when buying property in Dubai
The most important fee when buying property in Dubai is the Dubai Land Department registration fee. Investors typically budget it as 4% of the property value. It is the cost of registering the transaction and ownership rights in the official DLD system.
In market practice this cost is very often borne by the buyer, especially when purchasing a property on the secondary market. In off-plan projects, however, it sometimes happens that the developer covers part or all of the DLD fee as part of a promotion. This is not a rule that always applies — it depends on the specific project, the sales stage, the developer's policy and the current offer.
For every investment, therefore, it is worth checking whether the price presented to the client includes only the property value or also any incentives, such as a DLD waiver, i.e. coverage of the DLD fee by the developer.
2.Off-plan purchase costs vs ready property costs
Purchase costs in Dubai differ depending on the type of property.
When buying off-plan, i.e. a project under construction or before completion, the transaction is carried out directly with the developer. The buyer signs the sales agreement, pays the reservation or first instalment, and then the property is registered in the Oqood system as a purchase at the construction stage. The registration fee is usually calculated on the property value, but its actual settlement depends on the conditions of the specific project. In some developments the developer may cover the DLD fee in full or in part.
When buying a ready property on the secondary market, the buyer should usually expect a larger number of upfront costs. In addition to the DLD fee, there is most often an agency commission, a trustee fee, a title deed fee, a possible NOC from the developer and bank costs if the purchase is financed with a mortgage.
Put simply, off-plan often allows the payment to be spread over time, while the secondary market requires more cash at the start of the transaction.
3.Trustee fee and administrative fees
For transactions registered through a trustee office, i.e. an authorised DLD transaction service centre, an additional service fee applies. Its amount depends on the property value. For properties worth at least AED 500,000 it is standardly AED 4,000 plus VAT. For properties below AED 500,000 the fee is lower.
On top of that, there are smaller administrative fees, such as the title deed issuance fee, map fee, knowledge fee and innovation fee. In themselves these are usually not the biggest items in the budget, but it is worth including them, especially at the final settlement of the transaction.
In the case of off-plan property purchases, part of the registration process takes place through the developer's system and Oqood, while for ready properties on the secondary market the formalities are usually handled by a trustee office.
4.Real estate agency commission
When buying property on the secondary market in Dubai, the standard agency commission is usually 2% of the property value, normally increased by VAT. This is the cost of intermediation in the transaction, negotiations, documents and coordination with the owner, developer, bank and trustee office.
When buying property directly from the developer, especially in off-plan projects, the client usually does not pay an agency commission. The broker's remuneration is then settled by the developer. This is one of the reasons why an off-plan purchase can be more predictable cost-wise at the start.
At Condostrada we do not charge clients consulting fees for property selection. For developer projects we help guide clients through the process of choosing the investment, reservation and purchase without any additional commission on the client's side.
5.NOC — fee when transferring ownership
NOC, or No Objection Certificate, is a document issued by the developer or project management confirming that there are no obstacles to transferring rights to the property to a new owner. This document is required both when buying a ready property on the secondary market and when reselling or assigning rights to an off-plan unit during the construction stage.
For a ready property on the secondary market, the NOC confirms that there are no outstanding service charge payments, no restrictions from the developer's side and consent to transfer ownership at the trustee office.
For the resale or assignment of an off-plan project before handover, the developer also issues a NOC, but additionally verifies the payment plan status of the current buyer. In many projects, in order to issue the NOC and complete the assignment, a minimum payment threshold must be reached — often defined in the SPA as, for example, 30% or 40% of the property value. The assignment is then registered in the Oqood system, which reflects the new owner of the unit at the construction stage.
The cost of the NOC depends on the developer and the specific property. It can range from several hundred to several thousand dirhams. In both scenarios — secondary market ready property and off-plan assignment — it is worth establishing in advance who bears this cost: the buyer or the seller. Some fees may be subject to negotiation between the parties.
6.Mortgage costs in Dubai
If the buyer uses bank financing, additional costs related to the mortgage need to be added. The most important is the fee for registering the mortgage at the Dubai Land Department, which amounts to 0.25% of the mortgage value. On top of that there are administrative fees and bank costs.
The bank may charge a property valuation fee, a fee for processing or releasing the loan, and other costs depending on the specific institution's offer. The amount of these fees varies between banks, so before signing the agreement it is worth asking for a full breakdown of financing costs.
For off-plan purchases, the mortgage most often appears only closer to the handover, when the building is completed or at an advanced stage of construction. Earlier instalments are usually paid in line with the developer's payment plan.
7.Service charge — the cost of maintaining the property after purchase
After purchasing a property, the owner needs to account for annual costs of maintaining the common areas, i.e. the service charge. These are fees intended, among others, for the maintenance of the building, reception, security, pool, gym, lifts, common grounds, air conditioning of common areas and facility management.
In 2025, service charges for apartments in Dubai most often fell in the indicative range of around AED 10–30 per square foot per year. In mid-standard buildings it was often around AED 12–18 per square foot, while in luxury projects with extensive amenities, reception, pools, gym or concierge services, fees could exceed AED 20–30 per square foot. In ultra-luxury projects rates may be even higher. The service charge should therefore always be checked for the specific building, because two projects in the same district may have completely different maintenance costs.
The level of the service charge depends on the project, location, building standard and the number of amenities. Luxury projects with extensive wellness facilities, pools, concierge and a large number of common areas may have higher fees than simpler residential buildings.
For an investor, the service charge matters because it affects the real rental return. When analysing ROI, it is not enough to look only at the projected rent — the maintenance costs of the property must also be taken into account.
8.Example costs when buying a property for AED 1,000,000
When buying a property for AED 1,000,000, an investor should indicatively include:
- DLD fee: approximately AED 40,000,
- trustee fee: usually around AED 4,000 plus VAT for properties above AED 500,000,
- DLD administrative fees: several hundred dirhams,
- agency commission on the secondary market: usually around AED 20,000 plus VAT,
- possible NOC on the secondary market,
- possible mortgage costs, if the purchase is financed by a bank.
This means that on the secondary market the total additional costs may be significantly higher than the DLD fee alone. With an off-plan purchase, some of these costs may not occur or may be covered by the developer as part of a promotion, but this always needs to be confirmed in the specific terms of the offer.
9.Are there hidden costs in Dubai?
Dubai is a fairly transparent market, but this does not mean that every cost is immediately visible in the first project presentation. The most common items the investor should check before buying are:
- whether the DLD is paid by the buyer or covered by the developer,
- whether the price includes a parking space,
- what the payment plan looks like and when the largest instalment is due,
- whether resale before project completion is subject to a minimum payment threshold,
- what the expected service charges will be,
- whether the project has an escrow account,
- what the reservation conditions and EOI refund terms are,
- whether, when buying on the secondary market, agency commission, NOC and trustee costs apply.
This information is important not only for the purchase itself, but also for the later investment strategy — rental, resale or long-term holding of the property.
10.How much cash do you need to prepare at the start?
For off-plan projects, the minimum starting capital depends on the property price and the payment plan. Often the investor starts with a reservation or first payment of several, a dozen or several dozen percent of the property value. Subsequent instalments are then spread according to the developer's schedule.
For a ready property on the secondary market, significantly more cash is usually needed at the start, because in addition to the property price, transaction costs, commission, DLD fees, trustee fees and a possible down payment when using a loan must be settled.
Before choosing a specific investment, therefore, it is worth not only comparing prices but also calculating the full cost of entering the transaction.
Summary
The costs of buying property in Dubai are predictable if from the very beginning it is clear which market is being targeted and what conditions are offered by the developer or seller. The most important item is the DLD fee, most often budgeted as 4% of the property value. On the secondary market, the agency commission, trustee fee, NOC and possible loan costs need to be added. For off-plan projects, some costs may be spread over time or covered by the developer as part of a promotion.
The best approach is to analyse the full budget before reserving a property. The apartment price alone is just the starting point — a real investment decision should take into account transaction fees, the payment plan, maintenance costs and the potential return from rental or resale.
Condostrada helps investors analyse not only the offer itself, but also the total cost of the purchase, payment terms and the investment potential of the project. Thanks to this, the decision to buy property in Dubai can be more informed, safer and tailored to the client's real budget.
To go from analysis to specifics, see our current property selection in Dubai and the UAE, how off-plan purchases work with SPA and Oqood, the comparison of off-plan vs ready properties and what an EOI is in new developer projects.