The true cost of buying property in Dubai
Every fee from the 4% DLD transfer to the bank valuation, with worked examples for cash and mortgage buyers.
Figures updated with data through 22 October 2026.
General information, not legal advice. For a decision about your own case, check the official sources or speak to a lawyer.
Source: DLD open data · Information, not financial advice. Not an official DLD product.
The price on the listing is not what you pay. A cash buyer of a ready home in Dubai pays about 7% on top of the price. A mortgage buyer pays a little more in fees, but needs far less cash on the day. Here is every line, with the figures ZoneIQ uses in its calculators.
The fees when you buy a ready home
- DLD transfer fee: 4% of the price plus AED 580 admin. Paid to the Dubai Land Department at transfer. DLD's fee list splits it 2% seller and 2% buyer; by custom the buyer pays all of it. It is the largest fee.
- Agency fee: usually 2% plus 5% VAT. Paid to the buyer's broker. It can be negotiated.
- Registration trustee office: AED 4,000 plus VAT for homes over AED 500,000 (AED 2,000 below that). The trustee office handles the transfer for DLD.
- Mortgage registration: 0.25% of the loan plus AED 290. Only with a mortgage.
- Bank valuation: about AED 2,500 to 3,500. The bank sends a valuer before it lends.
- Bank arrangement fee: up to 1% of the loan plus VAT. Some banks waive it in offers.
- Developer NOC: when you buy a resale unit, the seller usually pays for the developer's no objection certificate. Check the sale agreement.
Worked examples
For a ready home bought at AED 1M and AED 2M, as a cash buyer and with a mortgage at 25% down.
| Cash buyer | Mortgage, 25% down | |
|---|---|---|
| Down payment | AED 1.00M | AED 250,000 |
| DLD transfer fee (4% + AED 580) | AED 40,580 | AED 40,580 |
| Agency fee (2% + VAT) | AED 21,000 | AED 21,000 |
| Trustee office (AED 4,000 + VAT) | AED 4,200 | AED 4,200 |
| Mortgage registration (0.25% + AED 290) | – | AED 2,165 |
| Bank valuation | – | AED 3,000 |
| Bank arrangement (1% + VAT) | – | AED 7,875 |
| Total cash needed | AED 1.07M | AED 328,820 |
| Fees as a share of the price | 6.6% | 7.9% |
| Cash buyer | Mortgage, 25% down | |
|---|---|---|
| Down payment | AED 2.00M | AED 500,000 |
| DLD transfer fee (4% + AED 580) | AED 80,580 | AED 80,580 |
| Agency fee (2% + VAT) | AED 42,000 | AED 42,000 |
| Trustee office (AED 4,000 + VAT) | AED 4,200 | AED 4,200 |
| Mortgage registration (0.25% + AED 290) | – | AED 4,040 |
| Bank valuation | – | AED 3,000 |
| Bank arrangement (1% + VAT) | – | AED 15,750 |
| Total cash needed | AED 2.13M | AED 649,570 |
| Fees as a share of the price | 6.3% | 7.5% |
Off-plan is different
When you buy off-plan from a developer, the 4% DLD fee is paid at booking to register the sale in Oqood (the off-plan register), often with a small admin fee. DLD lists 2% from the developer and 2% from the buyer; buyers usually pay the full 4% unless the developer offers a fee waiver. There is usually no agency fee when you buy directly from the developer, and no trustee office fee. Most of the price is paid in stages, so the cash you need follows the payment plan. Banks lend on off-plan only up to 50% of the value, and usually only near handover.
The costs of owning
- Service charge: paid to the owners' association each year, per sqft. The Dubai-wide figure ZoneIQ uses when a building's rate is unknown is AED 15 per sqft. Real rates are in the DLD Service Charge Index (Mollak) and on each building's invoice. On a 750 sqft flat, AED 15 is AED 11,250 a year.
- Vacancy and management: ZoneIQ allows 5% of rent. A property manager usually charges 5% to 8% of rent.
- Ejari registration, maintenance and insurance: small, but they add up. The landlord usually pays for major repairs.
- No annual property tax and no tax on rental income in the UAE. Your home country may tax it.
The cost to sell
Plan for the exit when you buy. Selling a AED 1M home without a mortgage costs about AED 22,500: the seller's agency fee (2% plus VAT) and the developer NOC. With a mortgage, add early settlement (UAE Central Bank cap: 1% of the balance or AED 10,000, whichever is lower) and the mortgage release fee. Deal Check adds the cost to sell and shows the price you need to break even.
The Dubai median price per sqft is AED 1,657 today. Check a real listing against recent sales before you add these costs on top.