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Property buyers in Dubai face numerous fees beyond the purchase price that can add 6-7% to their total investment cost.
These charges include government transfer fees, agent commissions, mortgage-related costs, and ongoing service charges that many first-time buyers overlook when budgeting for their Dubai property purchase.
If you want to go deeper, you can check our pack of documents related to the real estate market in Dubai, based on reliable facts and data, not opinions or rumors.
Dubai property purchases involve mandatory government fees totaling approximately 4-5% of the property value, plus additional costs for agents, legal services, and utilities.
Ongoing costs include annual service charges ranging from AED 10-30 per square foot for apartments and AED 2-7 per square foot for villas, along with utility deposits and optional insurance.
| Fee Category | Cost Range | Payment Timing |
|---|---|---|
| Dubai Land Department Transfer Fee | 4% of property value | At completion |
| DLD Registration Fee | AED 2,000-4,000 + 5% VAT | At completion |
| Real Estate Agent Commission | 2% + 5% VAT | At completion |
| Mortgage Processing Fees | 0.5-1% of loan amount | During mortgage process |
| Annual Service Charges | AED 10-30 per sq ft (apartments) | Annually |
| DEWA Connection | AED 2,000-4,000 (refundable) | After purchase |
| Legal/Conveyancing Fees | AED 5,000-15,000 | During transaction |
Fact-checked and reviewed by our local expert
Jean-Charles Salvin 🇫🇷
Co-Founder, Best Dubai Condos
How much is the Dubai Land Department transfer fee and who actually pays it?
The Dubai Land Department transfer fee is exactly 4% of the property's registered value as of September 2025.
This fee is typically paid by the buyer, though some purchase agreements allow for splitting this cost between buyer and seller. The 4% rate applies to all residential properties regardless of value, making it one of the most significant upfront costs in any Dubai property transaction.
The transfer fee is calculated on the property's official registration value with the Dubai Land Department, not the market price. For a property worth AED 1 million, the transfer fee would be AED 40,000.
It's something we develop in our Dubai property pack.
This fee is mandatory and must be paid at the time of property registration to complete the ownership transfer.
What percentage is charged for the Dubai Land Department registration fee when buying a property?
The Dubai Land Department registration fee structure depends on the property value as of September 2025.
For properties valued below AED 500,000, the registration fee is AED 2,000 plus 5% VAT (totaling AED 2,100). For properties worth AED 500,000 and above, the fee increases to AED 4,000 plus 5% VAT (totaling AED 4,200).
This represents a flat fee rather than a percentage of the property value, making it more affordable for higher-value properties relative to the purchase price. The registration fee covers the administrative costs of processing the ownership transfer and updating the property records.
Additionally, there's an admin fee of AED 580 for ready properties and a title deed issuance fee ranging from AED 250 to AED 580 depending on the transaction type.
All buyers must pay these fees regardless of whether they're purchasing through cash or mortgage financing.
How much is the fee for registering the property with the Real Estate Regulatory Agency (RERA)?
Property buyers do not pay a separate RERA registration fee when purchasing property in Dubai.
RERA fees primarily apply to real estate agents and developers who need licenses to operate in the Dubai market. For property buyers, the regulatory compliance costs are included within the Dubai Land Department registration fees.
RERA oversees the regulation of real estate activities in Dubai, but buyers don't interact directly with RERA for property registration purposes. The Dubai Land Department handles all buyer-related registration processes.
The DLD registration fees mentioned earlier cover all necessary regulatory requirements for property ownership transfer, eliminating the need for separate RERA payments from buyers.
This streamlined approach simplifies the buying process and reduces the number of separate fees buyers need to track during their property purchase.
What are the typical charges for the real estate agent's commission in Dubai?
Real estate agent commission in Dubai's secondary market is typically 2% of the purchase price plus 5% VAT, totaling 2.1% of the property value.
This commission is generally paid by the buyer in secondary market transactions, though primary market purchases directly from developers may have different arrangements. For a property worth AED 1 million, the total agent commission would be AED 21,000.
Some agents may offer reduced commission rates for high-value properties or repeat clients, but 2% plus VAT remains the standard market rate across Dubai. Rental transactions involve a different commission structure, with agents typically charging 5% of the annual rent paid by tenants.
It's something we develop in our Dubai property pack.
Always confirm the exact commission rate and who pays it before signing any agency agreement, as terms can vary between different real estate firms.
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What is the property valuation fee if I'm taking a mortgage in Dubai?
Property valuation fees for mortgages in Dubai range from AED 2,500 to AED 3,500 plus 5% VAT as of September 2025.
This fee covers the cost of an independent property appraisal required by all UAE banks before approving mortgage financing. The exact amount varies by bank and property type, with some lenders charging toward the higher end of this range.
The valuation must be conducted by a bank-approved surveyor to ensure the property value justifies the loan amount. This process typically takes 3-5 business days and cannot be waived regardless of the property's obvious market value.
Buyers should budget approximately AED 3,000-4,000 total including VAT for this mandatory assessment when planning their mortgage financing.
Some banks may require a second valuation if the initial assessment comes in significantly below the purchase price, potentially doubling this cost.
What are the admin or processing fees the bank will charge me for a mortgage?
Dubai banks typically charge mortgage processing fees ranging from 0.5% to 1% of the total loan amount as of September 2025.
Some banks offer fixed administrative fees around AED 290 instead of percentage-based charges, which can be more cost-effective for larger loan amounts. The processing fee covers loan application review, documentation preparation, and administrative handling throughout the approval process.
These fees are separate from the property valuation costs and must be paid regardless of whether the mortgage application is ultimately approved. Most banks require this fee upfront during the application submission.
For a AED 800,000 mortgage, buyers should expect processing fees between AED 4,000 and AED 8,000 depending on their chosen lender's fee structure.
Additional bank charges may include loan arrangement fees, early settlement penalties, and annual account maintenance fees depending on the specific mortgage product.
Are there mortgage registration fees with the Dubai Land Department, and how are they calculated?
Yes, Dubai Land Department charges a mortgage registration fee of 0.25% of the loan amount plus an additional AED 290 administrative fee.
This fee is mandatory for all mortgaged properties and must be paid to register the bank's security interest with the Dubai Land Department. For a AED 800,000 mortgage, the registration fee would be AED 2,000 (0.25%) plus AED 290 admin fee, totaling AED 2,290.
The mortgage registration protects the bank's legal rights to the property and ensures proper documentation of the lending arrangement. This fee is separate from the property transfer fees and must be paid even if the buyer has already paid transfer fees.
Banks typically handle the mortgage registration process on behalf of borrowers, but the cost is passed through to the buyer as part of the mortgage closing costs.
This registration remains in effect until the mortgage is fully repaid and must be formally cancelled through the Dubai Land Department upon loan completion.
What is the cost of the No Objection Certificate (NOC) from the developer when transferring ownership?
No Objection Certificate fees from developers range from AED 500 to AED 5,000 depending on the project and developer policies.
The NOC fee is typically paid by the seller, but purchase agreements sometimes shift this cost to the buyer, especially in competitive market conditions. This certificate confirms that all developer fees, service charges, and community obligations are current before ownership transfer.
Luxury developments and newer projects often charge higher NOC fees, while older established communities may have lower rates. Some developers waive NOC fees for properties sold within the first few years of completion.
It's something we develop in our Dubai property pack.
Buyers should confirm who pays the NOC fee before signing purchase agreements, as this cost can sometimes be negotiated between parties during contract discussions.
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Are there annual service charges or community fees for the building or villa, and how are they calculated per square foot?
Annual service charges in Dubai are calculated per square foot and vary significantly based on location, building amenities, and community facilities.
| Property Type | Service Charge Range | Examples |
|---|---|---|
| Dubai Marina Apartments | AED 15-16 per sq ft/year | Standard amenities, pool, gym |
| Burj Khalifa Apartments | AED 67.88 per sq ft/year | Luxury amenities, premium services |
| Business Bay Apartments | AED 15 per sq ft/year | Standard business district amenities |
| Arabian Ranches Villas | AED 2-3 per sq ft/year | Community maintenance, landscaping |
| Jumeirah Golf Estates Villas | AED 6.24 per sq ft/year | Golf course access, premium facilities |
| Standard Apartment Buildings | AED 10-30 per sq ft/year | Varies by building age and amenities |
| Villa Communities | AED 2-7 per sq ft/year | Security, landscaping, community facilities |
Are there utility connection fees I should expect when moving into a property in Dubai?
Dubai Electricity and Water Authority (DEWA) charges connection fees of AED 2,000 for apartments and AED 4,000 for villas as of September 2025.
These fees function as refundable security deposits that DEWA holds throughout your tenancy or ownership. The deposit amount reflects the higher utility consumption typically associated with larger villa properties compared to apartments.
Connection fees must be paid before utility services are activated in your name, typically within the first week of taking possession. DEWA requires proof of property ownership or valid tenancy contract before processing connection requests.
The deposit is refunded when you permanently disconnect services, minus any outstanding utility bills or late payment penalties. Most property owners recover the full deposit amount when selling or vacating their property.
Additional charges may apply for smart meter installations or premium service packages, but the standard connection fees remain at the AED 2,000-4,000 levels across all Dubai areas.
What are the typical fees for conveyancing or hiring a legal representative for the purchase?
Legal and conveyancing fees in Dubai typically range from AED 5,000 to AED 15,000 depending on the transaction complexity and law firm chosen.
More complex transactions involving multiple properties, off-plan purchases, or mortgage arrangements generally require higher legal fees due to additional documentation review and negotiation work. Simple cash purchases of ready properties usually fall toward the lower end of this range.
Legal representatives handle contract review, due diligence verification, title deed searches, and representation during the final property transfer at the Dubai Land Department. International law firms typically charge premium rates compared to local legal practices.
It's something we develop in our Dubai property pack.
While legal representation isn't mandatory for property purchases in Dubai, most international buyers invest in professional legal advice to navigate UAE property laws and protect their interests during the transaction.
Are there any ongoing hidden costs, such as property insurance or annual municipality housing fees, that I should budget for?
Dubai property owners face several ongoing annual costs beyond the initial purchase fees that buyers often overlook when budgeting.
Property insurance costs approximately AED 500 to AED 1,500 per year for most apartments and villas, though this coverage is optional rather than mandatory. Insurance protects against fire, theft, and structural damage but isn't required by law.
Dubai Municipality housing fees equal approximately 5% of your annual rental income if the property is tenanted, or a reduced amount for owner-occupied properties. These fees are collected through monthly utility bills and fund municipal services and infrastructure maintenance.
Annual service charges discussed earlier represent the largest ongoing cost, ranging from AED 10-30 per square foot for apartments and AED 2-7 per square foot for villas depending on the community and amenities provided.
Property owners should budget for potential special assessments from building management for major repairs or improvements, which can occasionally add unexpected costs to annual ownership expenses.
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 these hidden fees helps you budget accurately for your Dubai property purchase and avoid financial surprises during the transaction process.
As of September 2025, buyers should budget approximately 6-7% of the property value for all upfront fees, plus ongoing annual costs for service charges and optional insurance coverage.
Sources
- Driven Properties - Property Service Charges Dubai
- Grovy - DLD Fees 2025
- Sotheby's Realty - Cost of Buying Property in Dubai
- Engel & Völkers - DLD Fees
- Strada UAE - Property Taxes and Fees Guide
- BHomes - Hidden Costs of Buying Property
- Capital Zone - Property Valuation Fees
- Livrichy - Taxes and Fees for Real Estate Investors
- Million Plus - UAE Mortgage Registration Fee
- Mortgage Finder - Dubai Property Fees