Total Cost of Buying Property in Dubai
You've found the perfect Dubai apartment. Mortgage approved. Down payment ready. But before you sign, there's a critical question: How much cash do you actually need?
The listing price is just the starting point. Dubai's transparent but strict fee structure adds 7-10% in mandatory closing costs—and from 2026, you cannot roll these into your mortgage. Cold, hard cash only.
Here's your complete breakdown of every dirham you'll spend closing your Dubai property deal.
UPFRONT CLOSING COSTS: 7-10% of property purchase price (CASH required)
MANDATORY FEES BREAKDOWN:
Government Charges:
- DLD Transfer Fee: 4% of property value (largest cost)
- Title Deed Issuance: AED 580
- Trustee Fee: AED 4,000-5,250 + VAT
- Oqood Registration: AED 1,000-5,000 (off-plan only)
Professional Fees:
- Agency Commission: 2% + VAT (ready properties only)
- Valuation Fee: AED 2,500-3,500 + VAT (if financing)
Mortgage Fees (if applicable):
- Mortgage Registration: 0.25% of loan amount + AED 290
- Bank Processing: Up to 1% of loan amount
EXAMPLE: AED 1M property = ~AED 71,000 extra costs (AED 271,000 total cash needed with 20% down payment)
CRITICAL 2026 UPDATE: Transaction fees CANNOT be added to mortgage - must be paid in cash upfront
The 4% DLD Fee: Dubai's Biggest Closing Cost
Dubai Land Department (DLD) Transfer Fee = 4% of purchase price
What It Covers
- Legal property registration in your name
- Government record of ownership transfer
- Required for Title Deed or Oqood Certificate
- Non-negotiable across all property types
Who Pays?
Official Law: Split 50/50 (2% buyer, 2% seller)
Market Reality: Buyer pays full 4% (unless heavily negotiated)
Action: Budget for full 4% as buyer responsibility
Examples
- AED 500,000 studio: AED 20,000 DLD fee
- AED 1,000,000 1BHK: AED 40,000 DLD fee
- AED 2,000,000 villa: AED 80,000 DLD fee
This is your single largest closing cost—plan accordingly.
Complete Fee Breakdown: What Else You'll Pay
Ready Property Purchase (With Mortgage)
Government/Admin Fees:
- DLD Transfer: 4% of value
- Title Deed Issuance: AED 580
- Trustee Fee: AED 4,200 (incl. VAT)
Professional Fees:
- Agency Commission: 2% + VAT
- Property Valuation: AED 2,500-3,500 + VAT
Mortgage Fees:
- Mortgage Registration: 0.25% loan amount + AED 290
- Bank Processing: ~1% of loan amount
- Valuation (again): AED 2,500-3,500
Total: 7-8% of property value
Off-Plan Property Purchase
Government/Admin Fees:
- DLD Transfer: 4% of value
- Oqood Registration: AED 1,000-5,000
- Trustee Fee: AED 4,200-5,250 (incl. VAT)
Professional Fees:
- Agency Commission: ZERO (developer-paid)
- No valuation needed initially
Total: 4-5% of property value
ADVANTAGE: Save 2-3% by buying off-plan vs ready property
Real-World Cost Examples (2026)
Scenario 1: AED 1M Apartment (Ready, 80% Mortgage)
Extra costs: 7.1% of purchase price
Scenario 2: AED 1.5M Apartment (Off-Plan, Developer Plan)
Extra costs: 4.6% of purchase price
SAVINGS vs ready property: ~AED 34,000 (no agency fee, no mortgage costs initially)
Critical 2026 Regulation Change
OLD RULE (Pre-2026): Some banks allowed DLD fees added to mortgage total
NEW RULE (2026 onward): ALL transaction fees must be paid in CASH upfront
What this means:
- Cannot finance DLD 4% fee
- Cannot finance agency commission
- Cannot finance trustee fees
- Must have full liquidity before transfer day
Planning essential: Budget 25-30% total cash (20% down + 7-10% fees) for ready properties
Off-Plan vs Ready: Fee Comparison
Strategic Advantage: Off-plan properties reduce immediate cash friction by 3-4% of property value
Hidden Post-Purchase Costs
Annual Service Charges (often overlooked):
Luxury Towers (Downtown/Marina):
- AED 18-30 per sq ft annually
- Example: 1,000 sq ft = AED 18,000-30,000/year
Suburban Communities (Dubailand/JVC):
- AED 10-15 per sq ft annually
- Example: 1,000 sq ft = AED 10,000-15,000/year
Impact on investors: High service charges reduce net rental yield by 1.5-2.5 percentage points
Action: Check DLD Service Charge Index before buying
The Mayfair Nexus Advantage: Strategic Fee Management
Traditional Ready Property Path:
- Need 27% upfront cash (20% down + 7% fees)
- High mortgage interest immediately
- Agency commission = AED 20K-40K wasted
Mayfair Nexus Off-Plan Path:
Phase 1: Booking
- 20% down payment
- 4% DLD fee
- Oqood registration (~AED 3K)
- Zero agency commission
Phase 2: Construction (2026-2028)
- 20% paid in installments (interest-free)
- No mortgage needed yet
- Property appreciating during build
Phase 3: Handover (Q4 2028)
- Final 60% payment
- Title Deed conversion
- Metro Blue Line opening (2029) = appreciation catalyst
Total Savings:
- AED 20K-40K (no agency fee)
- 2-3 years interest-free financing
- Buy pre-Metro appreciation pricing
The Bottom Line: Cash Planning is Critical
Key Takeaways:
✓ Budget 7-10% extra beyond property price for ready purchases
✓ 4% DLD fee non-negotiable - largest single closing cost
✓ All fees must be CASH - cannot be financed (2026 regulation)
✓ Off-plan saves 3-4% by eliminating agency commission + delayed mortgage
✓ Service charges matter - verify ongoing costs before buying
Strategic Moves:
For Ready Properties:
- Negotiate seller pays 2% DLD (in buyer's market)
- Use mortgage broker to minimize bank fees
- Budget 30% total cash (20% down + 10% buffer)
For Off-Plan Properties:
- Buy direct from developer (save 2% agency)
- Use staged payment plans (reduce cash friction)
- Time purchase for infrastructure catalysts
Smart investors in 2026 aren't just finding good properties—they're finding smart payment structures that minimize upfront cash while maximizing long-term appreciation.
FAQ’s
1. What are the DLD fees for buying property in Dubai?
The mandatory Dubai Land Department (DLD) fee is 4% of the property purchase price. This fee legally registers the property transfer in your name and is required for both off-plan and ready properties. Example: AED 1M property = AED 40,000 DLD fee. Officially split 2% buyer/2% seller, but market practice expects buyers to pay the full 4%. Cannot be financed - must be paid in cash at transfer. This is your largest single closing cost.
2. What is the total cost of buying an apartment in Dubai?
Total upfront costs range 7-10% of purchase price beyond the property value itself. Ready property example (AED 1M): Down payment AED 200K (20%) + DLD fee AED 40K (4%) + Agency AED 21K (2%+VAT) + Trustee AED 4.2K + Mortgage registration AED 2.3K + Valuation AED 3.2K + Title Deed AED 580 = Total AED 271,220 cash needed. Off-plan typically 4-6% (no agency fee). All transaction fees must be paid in cash upfront as of 2026.
3. Who pays the real estate agency commission in Dubai?
Ready/secondary market: Buyer pays 2% + VAT (standard market practice). Example: AED 1M property = AED 21,000 agency fee. Off-plan properties: Usually ZERO buyer commission - developer pays marketing costs. This represents AED 20K-40K savings buying off-plan vs ready property. Some luxury resale transactions negotiate seller-paid commission in buyer's markets, but this is rare. Agency fee cannot be added to mortgage - requires cash payment.
4. Can I add DLD fees to my mortgage in 2026?
NO. Critical 2026 regulatory change: UAE Central Bank now prohibits financing transaction costs into mortgage amounts. ALL closing costs must be paid in cash upfront: DLD 4% fee, agency commission, trustee fees, registration charges. Old practice (pre-2026): Some banks allowed adding fees to loan total. New reality: Buyers need 25-30% total liquid cash (20% down payment + 7-10% closing costs) for ready property purchases. Plan liquidity accordingly.
5. What is an Oqood registration fee in Dubai?
Oqood is the interim property registry for off-plan (under-construction) properties. Since you cannot get a Title Deed for an unbuilt property, DLD issues an Oqood certificate proving ownership rights during construction. Fee: AED 1,000-5,000 (varies by project) paid alongside 4% DLD fee within 30 days of booking. At handover: Oqood automatically converts to standard Title Deed. Purpose: Legally protects buyer ownership while building is being constructed, ensures developers cannot resell units.
6. How much is the property transfer fee in Dubai?
The transfer fee is the DLD registration fee: 4% of sale value. This is identical terminology. While technically split 2% buyer + 2% seller under Dubai Law No. 7 of 2006, market convention: buyer pays full 4% unless aggressively negotiated otherwise (rare). Example: AED 1.5M property = AED 60,000 transfer fee. Payable via manager's cheque at trustee office on transfer day. Cannot be avoided - mandatory for legal ownership registration in Dubai Land Department records.
7. Are there annual property taxes in Dubai?
NO annual property taxes, capital gains taxes, or rental income taxes in Dubai - major investment advantage. One-time costs only: 4% DLD registration fee at purchase. 5% VAT applies to services (agency commission, trustee fees, bank fees) but NOT to residential property value itself. Ongoing costs: Annual service charges (building maintenance, AED 10-30 per sq ft depending on community), DEWA utilities, municipality housing fee (5% of annual rent). No taxation when selling property or collecting rental income.
8. Do off-plan properties have lower fees than ready properties?
YES - typically 3-4% lower total closing costs. Off-plan advantages: (1) No agency commission (developer-paid = AED 20K-40K saved), (2) No immediate mortgage costs (if using developer payment plan), (3) No valuation fee initially, (4) Oqood cheaper than multiple ready property fees. Off-plan costs: 4% DLD + Oqood AED 1K-5K + Trustee AED 4-5K = ~4-6% total. Ready property costs: 4% DLD + 2% Agency + Mortgage fees + Valuation = 7-10% total. Strategic timing: Pay fees over 2-3 years vs all upfront.
9. How do I verify DLD fees and avoid scams?
Official verification methods:(1) Dubai REST App - Download official DLD app, search property/project, view exact registration fees and escrow account status. (2) DLD Website - Visit dubailand.gov.ae, access fee calculator showing exact 4% for your property value. (3) Request documentation - Legitimate developers/agents provide itemized fee breakdown matching DLD standards. (4) Verify trustee authorization - Check DLD-approved trustee list. Red flags: Requests for cash payments to personal accounts, fees exceeding 4% DLD + standard costs, unlicensed agents, no Oqood/escrow account verification. Always use registered channels.
