Authored by the expert who managed and guided the team behind the UAE Property Pack
Yes, the analysis of Abu Dhabi's property market is included in our pack
Buying property in Abu Dhabi involves multiple taxes and fees that can significantly impact your total investment cost.
The total fees and taxes for purchasing property in Abu Dhabi typically range from 4% to 8% of the purchase price, depending on whether you buy off-plan or resale, use financing, and the specific developer involved.
If you want to go deeper, you can check our pack of documents related to the real estate market in Abu Dhabi, based on reliable facts and data, not opinions or rumors.
As of September 2025, Abu Dhabi property buyers face government transfer fees of 2% of purchase price, agent commissions of 2% plus VAT, and various utility and registration costs.
Additional costs include mortgage fees (up to 1% of loan amount), developer NOC fees (AED 500-1,500), and ongoing service charges of AED 107-269 per square meter annually.
| Fee Type | Amount/Rate | Who Pays |
|---|---|---|
| Government Transfer Fee | 2% of purchase price | Split 50/50 (negotiable) |
| Title Deed Fee | AED 1,000 fixed | Buyer |
| Agent Commission | 2% + 5% VAT | Seller (usually) |
| Mortgage Processing | Up to 1% of loan + VAT | Buyer |
| Utility Connection | AED 1,000-2,000 | Buyer |
| Service Charges (Annual) | AED 107-269 per sqm | Owner |
| Municipality Rent Tax | 5% of annual rent | Tenant (via landlord) |
What determines the agreed purchase price in Abu Dhabi, and does it matter if the property is residential or commercial?
The agreed purchase price in Abu Dhabi varies significantly based on location, property type, and market conditions as of September 2025.
For residential properties, the average purchase price currently sits around AED 4.48 million, though listings range from under AED 400,000 for studio apartments in outer areas to AED 350 million+ for luxury penthouses on Saadiyat Island or Al Reem Island. Commercial properties command higher averages at approximately AED 15.07 million, with a broader range from AED 350,000 for small retail units to AED 749 million+ for prime office towers or shopping centers.
The property classification as residential or commercial directly impacts your fee structure, particularly for government transfer fees and ongoing service charges. Commercial properties often face higher service charges and different VAT implications. Your purchase agreement must clearly specify the property type, as this affects everything from mortgage eligibility to rental regulations under Abu Dhabi's Tawtheeq system.
Property prices in Abu Dhabi's residential market are expected to continue growing in 2026, particularly in prime areas like Al Raha Beach and Yas Island, driven by government initiatives and increased foreign investment allowances.
How do off-plan and ready properties differ in terms of developer fees?
Off-plan properties require different fee structures compared to ready or resale properties in Abu Dhabi's market.
Off-plan purchases involve buying directly from developers before construction completion, typically requiring a 10-20% down payment followed by installments during construction phases. Developer registration fees for off-plan properties are standardized at AED 4,000 for properties above AED 500,000 and AED 2,000 for those below this threshold. Additionally, developers charge handover fees ranging from AED 2,000 to AED 5,000 depending on the project size and developer policies.
Ready or resale properties are completed units being sold by previous owners through the secondary market. These transactions don't involve developer registration fees but may require a No Objection Certificate (NOC) from the original developer, costing AED 500 to AED 1,500. The NOC process typically takes 2-5 business days and is mandatory for ownership transfer.
It's something we develop in our UAE property pack.
What are the government transfer and registration fees, including any caps or minimums?
Government transfer and registration fees in Abu Dhabi are standardized but can vary based on local incentives and property location.
The standard government transfer fee is 2% of the agreed purchase price, though this can range from 1% to 4% depending on specific areas and current government incentives for certain developments. A fixed title deed fee of AED 1,000 applies to all transactions, regardless of property value. Additional administrative and processing fees typically range from AED 540 to AED 1,000, covering documentation and system processing costs.
There are no official minimum or maximum caps on the transfer fee percentage, but the 2% rate has remained consistent across most Abu Dhabi transactions as of September 2025. Some specialized zones or government-promoted developments may offer reduced rates of 1% to encourage investment, particularly for first-time buyers or Emirati nationals.
These fees must be paid at the Department of Municipalities and Transport (DMT) service centers or through approved online platforms before the new title deed can be issued.
Who pays the transfer and registration fees, and when are they due?
Transfer and registration fee responsibility in Abu Dhabi is typically split between buyer and seller, though this arrangement is negotiable.
The standard practice involves a 50/50 split of the 2% government transfer fee between buyer and seller, meaning each party pays 1% of the purchase price. However, this split is not mandatory and can be negotiated as part of the purchase agreement. In competitive seller markets, buyers may agree to cover the entire 2% fee, while in buyer-favorable conditions, sellers might absorb these costs.
Payment is due at the time of ownership transfer, which typically occurs within 30 days of the sale agreement signing. The fees must be paid before the DMT can process the title deed transfer, either at physical service centers or through the government's online payment portal. Both parties must be present or represented by authorized agents during the transfer process.
The AED 1,000 title deed fee and administrative charges are generally paid by the buyer, as these directly relate to issuing the new ownership document.
What are the agent commission rates and VAT implications?
Real estate agent commissions in Abu Dhabi follow standardized rates with mandatory VAT additions as of September 2025.
The typical agent commission rate is 2% of the property's agreed purchase price, with no official maximum limit set by authorities. However, 2% has become the market standard across most agencies and property types. Some agencies may set minimum commission amounts for lower-value properties to ensure transaction viability. The commission is usually paid by the seller, though this can be negotiated in the purchase agreement.
A mandatory 5% VAT is added on top of the commission rate, bringing the total cost to 2.1% of the purchase price. For a AED 2 million property, this means AED 40,000 base commission plus AED 2,000 VAT, totaling AED 42,000. This VAT is collected by the real estate agency and remitted to the Federal Tax Authority.
Some premium agencies handling luxury properties above AED 10 million may negotiate higher commission rates up to 3%, particularly for exclusive listings or off-market deals requiring extensive marketing efforts.
Don't lose money on your property in Abu Dhabi
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What mortgage-related fees should you expect when financing your Abu Dhabi property?
Mortgage financing in Abu Dhabi involves several fees that can add 1.5% to 2.5% to your total loan amount.
| Fee Type | Amount | When Paid |
|---|---|---|
| Bank Arrangement/Processing Fee | Up to 1% of loan amount + 5% VAT | At loan approval |
| Property Valuation Fee | AED 2,500 - 3,000 + VAT | Before loan approval |
| Mortgage Registration Fee | 0.1% of loan amount | At property transfer |
| Life Insurance (Required) | 0.3% - 0.5% of loan annually | Annual premium |
| Property Insurance | AED 1,500 - 3,000 annually | Annual premium |
| Legal Fee | AED 2,000 - 5,000 | At loan closure |
| Early Settlement Fee | 1% of outstanding balance | If paying early |
For a typical AED 2 million mortgage at 80% financing (AED 1.6 million loan), you can expect upfront fees of approximately AED 16,000 for processing, AED 2,750 for valuation, AED 1,600 for registration, plus annual insurance costs of around AED 6,000-8,000.
Banks typically require life insurance coverage equal to the loan amount and property insurance covering the full property value. These are mandatory and cannot be waived, though you may have options to choose your insurance provider in some cases.
What are developer NOC and assignment fees for resale properties?
Developer No Objection Certificates (NOC) are mandatory for all resale transactions in Abu Dhabi's property market.
The NOC fee ranges from AED 500 to AED 1,500 depending on the developer and project type, with most major developers like Aldar, ADGM, and Mubadala charging around AED 1,000 for standard residential units. Luxury developments and commercial properties may command higher NOC fees up to AED 2,500. The timeline for NOC issuance is typically 2-5 business days from application submission with complete documentation.
Assignment fees apply when transferring an off-plan property before completion, ranging from AED 1,000 to AED 3,000 plus any outstanding installments to the developer. Some developers charge a percentage-based assignment fee of 1-2% of the original purchase price, particularly for popular projects in areas like Al Reem Island or Saadiyat Island.
The NOC process requires original purchase agreements, payment receipts, Emirates ID copies, and sometimes a clearance letter confirming no outstanding service charges or community fees are owed.
What are the utility connection costs and deposits in Abu Dhabi?
Utility connections in Abu Dhabi involve both one-time connection fees and refundable security deposits paid to service providers.
Abu Dhabi Distribution Company (ADDC) handles electricity and water connections, charging a one-time connection fee of AED 1,000 to AED 2,000 depending on property size and electrical load requirements. A refundable security deposit of AED 1,000 to AED 2,500 is also required, calculated based on estimated monthly consumption patterns. This deposit is refundable upon disconnection with final account clearance.
District cooling services, where applicable in developments like Al Reem Island or downtown Abu Dhabi, involve separate connection fees ranging from AED 500 to AED 2,000 paid directly to the cooling service provider. Some developments include cooling in their service charges, eliminating separate connection requirements.
Gas connections for cooking and heating are typically AED 500-800 for standard residential units, while fiber optic internet installation costs around AED 300-500 depending on the provider and package selected.
It's something we develop in our UAE property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the annual service charges and sinking fund contributions?
Annual service and maintenance charges in Abu Dhabi vary significantly based on property type, location, and amenities provided.
Service charges typically range from AED 10 to AED 25 per square foot annually, which translates to approximately AED 107 to AED 269 per square meter. High-end developments with extensive amenities like Al Raha Beach or Saadiyat Island properties often charge at the upper end of this range, while standard residential buildings in areas like Khalifa City charge lower rates around AED 10-15 per square foot.
Sinking fund contributions are property-specific and not universally required across all Abu Dhabi developments. When applicable, these one-time contributions typically range from AED 50 to AED 100 per square meter and are used for major building repairs and capital improvements. Some developers collect sinking fund contributions at the time of purchase, while others implement annual charges as part of the service fee structure.
All service charges include 5% VAT as of September 2025, so the quoted rates are inclusive of tax. These charges cover common area maintenance, security services, landscaping, elevator maintenance, and shared utility costs for common areas.
What are the costs for renting out your Abu Dhabi property?
Renting out property in Abu Dhabi involves several mandatory registration and tax obligations that property investors must factor into their returns.
Tawtheeq lease registration is mandatory for all rental agreements and costs AED 100 to AED 250 per contract, depending on rental duration and property type. This registration must be completed within 30 days of tenancy commencement through approved real estate offices or online platforms. The municipality rent tax of 5% of the annual rental amount is typically added to the rental contract and paid by the tenant, though landlords remain responsible for ensuring compliance.
Property management fees for professional rental management services typically range from 5% to 10% of annual rental income, with most agencies charging 8% for standard residential properties. This includes tenant sourcing, contract preparation, maintenance coordination, and rent collection services. Some agencies offer flat-fee arrangements ranging from AED 3,000 to AED 8,000 annually for basic services.
Additional costs include advertising fees of AED 500-1,500 for premium property portals, tenant verification services at AED 200-500 per application, and potential legal fees of AED 2,000-5,000 for complex rental disputes.
What other recurring government and community charges should you budget for?
Property ownership in Abu Dhabi involves various recurring charges beyond basic service fees that can total AED 1,000 to AED 5,000 annually.
Community charges vary by development but commonly include waste management fees of AED 300-600 annually, parking permits ranging from AED 500-1,200 per space depending on location, and facilities access fees for pools, gyms, and recreational areas that can range from AED 1,000-3,000 annually in premium developments.
Government charges include annual property registration renewal fees of AED 200-500 in some emirates, though Abu Dhabi has generally moved away from annual property taxes for individual owners. Some specialized developments may have additional fees for beach access, marina berths, or golf course privileges that range from AED 2,000-10,000 annually.
Homeowners association fees in gated communities or master-planned developments like Al Raha Gardens or Yas Island can range from AED 2,000-8,000 annually, covering enhanced security, landscaping, and community event organization.
What exit costs should you budget for when selling your Abu Dhabi property?
Selling property in Abu Dhabi involves several costs that can reduce your net proceeds by 3% to 5% of the sale price.
Agent commission remains at 2% of the sale price plus 5% VAT, totaling 2.1% paid by the seller in most transactions. Developer NOC fees of AED 500-1,500 are required for ownership transfer, regardless of how long you've owned the property. Early mortgage settlement fees typically cost 1% of the remaining loan balance, though some banks cap this at AED 10,000-25,000 for residential properties.
New transfer and registration fees follow the same structure as your original purchase, with the 2% government transfer fee typically split 50/50 with the buyer, meaning you'll pay 1% of the sale price. Legal fees for sale completion range from AED 2,000-5,000, while property clearance certificates confirming no outstanding dues cost around AED 500-1,000.
For a AED 3 million property sale with an outstanding mortgage of AED 1.5 million, total exit costs would approximately include: AED 63,000 for agent fees, AED 15,000 for early mortgage settlement, AED 30,000 for transfer fees, plus miscellaneous costs of AED 5,000-8,000, totaling around AED 113,000-118,000 or roughly 3.8% of the sale price.
It's something we develop in our UAE property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding the complete fee structure is crucial for successful property investment in Abu Dhabi's dynamic market.
As of September 2025, buyers should budget 4-8% of purchase price for total transaction costs, with ongoing annual expenses of AED 5,000-15,000 depending on property type and location.
Sources
- Bayut Abu Dhabi Property Listings
- Bayut Commercial Properties Abu Dhabi
- Mortgage Finder Abu Dhabi Property Fees
- Abu Dhabi Off Plan vs Secondary Market
- Meta Homes Property Transfer Guide
- Bayut Property Transfer Abu Dhabi
- Abu Dhabi Real Estate Buying Guide 2025
- Dubizzle Service Fees Abu Dhabi Property
- Sands of Wealth Property Transfer Abu Dhabi
- Creation BC Property Transfer Tax