What is the total cost of buying property in Dubai?

Total buying costs are typically 7-10% on top of the purchase price. This includes 4% DLD registration fee, 2% agency commission, AED 4,000-5,000 trustee fees, and AED 500-5,000 NOC fee. Service charge deposits may also be required.

What is the DLD registration fee in Dubai?

The Dubai Land Department (DLD) charges a 4% transfer fee on all property purchases. This is split equally (2% each) between buyer and seller, though buyers often pay the full 4% as market practice. There's also a fixed AED 580 admin fee.

Do I pay property tax in Dubai?

No. Dubai has no annual property tax, capital gains tax, or income tax on rental income. The only recurring costs are service charges (typically AED 10-30 per sqft annually) and utilities. This makes Dubai highly tax-efficient for property investors.

What are service charges in Dubai?

Service charges cover building maintenance, common areas, amenities, and management. They typically range from AED 10-30 per square foot annually. Premium buildings with pools, gyms, and concierge services charge more. These are mandatory and set by the building management.

What is a NOC fee in Dubai property?

A No Objection Certificate (NOC) is required from the developer to transfer property. Fees range from AED 500-5,000 depending on the developer. Some developers like Emaar charge AED 5,000, while others like Damac charge less. The NOC confirms no outstanding service charges.

True Cost of Buying Property in Dubai

Every fee explained. DLD, agency, NOC, service charges, mortgage costs. No surprises.

7-10%

Total fees on price

DLD transfer fee

Agency commission

Annual property tax

Feb 2025 Rule Change

UAE Central Bank now requires all transaction fees (DLD, agency, trustee) to be paid upfront. Banks can no longer finance these costs as part of your mortgage. Budget accordingly.

Example: AED 2,000,000 Property (Cash)

Property Price AED 2,000,000

DLD Transfer Fee (4%) AED 80,000

Agency Commission (2% + VAT) AED 42,000

Trustee Fee + VAT AED 4,200

NOC Fee AED 3,000

Title Deed Issuance AED 580

Total Cost AED 2,129,780

1. Dubai Land Department (DLD) Fees

Government fees for property registration. Non-negotiable.

Fee	Amount	Notes
Transfer Fee	4% of price	Largest single cost. Legally split 2% buyer/seller but buyers usually pay full amount.
Trustee Fee	AED 4,000 + VAT	For properties AED 500K+. Under AED 500K = AED 2,000 + VAT.
Title Deed	AED 580	Admin fee for issuing title deed.
Map/Admin Fees	AED 270-480	Knowledge fee, innovation fee, mapping.

2. Agency Commission

Real estate agent fees. Sometimes negotiable on luxury properties.

Transaction	Rate	Notes
Standard sale	2% + 5% VAT	= 2.1% effective rate
Luxury (AED 10M+)	1-1.5%	Negotiable on high-value transactions
Rentals	5% annual rent	Or minimum AED 5,000

3. NOC (No Objection Certificate)

Developer confirmation that all service charges are paid. Required for transfer.

Developer	Typical Fee
Most developers	AED 500 - AED 5,000 + VAT
Average	AED 2,500 - AED 3,000

4. Service Charges (Annual)

Ongoing community maintenance. Paid annually. Varies significantly by area.

Premium Areas

Downtown Dubai AED 17-40/sqft

Palm Jumeirah ~AED 25/sqft

Dubai Marina AED 14-28/sqft

Business Bay ~AED 13/sqft

Value Areas

JLT AED 13-17/sqft

JVC AED 10-15/sqft

International City ~AED 7/sqft

DAMAC Hills 2 AED 3-7/sqft

Villas - Premium

Jumeirah Islands AED 3-7/sqft

Dubai Hills AED 3-4/sqft

Emirates Hills ~AED 1.5/sqft

Villas - Value

Arabian Ranches 2 ~AED 2.4/sqft

Arabian Ranches 1 ~AED 0.9/sqft

5. Mortgage Fees (If Financing)

Additional costs when using bank financing. Add ~1.5% to total costs.

Fee	Amount	Notes
Mortgage Registration	0.25% of loan + AED 290	DLD registration fee
Bank Processing	0.5% - 1% of loan	Some banks waive during promotions
Property Valuation	AED 2,500 - 3,500 + VAT	Required by all banks
Life Insurance	0.3% - 0.6% of loan/year	Mandatory with mortgage
Home Insurance	AED 500 - 1,500/year	Usually required

6. Off-Plan (Oqood) Fees

Additional registration for properties under construction.

Fee	Amount	Notes
Oqood Registration	4% of price	Same as DLD, paid at initial registration
Oqood Admin Fee	AED 1,050	Sometimes covered by developer
Resale/Assignment Fee	0% - 5%	Varies by developer. Some prohibit resale until handover.

7. Hidden & Often Overlooked Costs

Budget 3-5% buffer for these.

Cost	Amount
DEWA Security Deposit	AED 2,000 - 4,000 (refundable)
Chiller Deposit	AED 2,000 - 5,000 (refundable)
Service Charge Prepayment	6-12 months upfront
Legal/Conveyancing	AED 6,000 - 15,000 (optional)
Property Snagging (off-plan)	AED 1,000 - 3,000
Ejari Registration (if renting out)	AED 155 - 220