The Hidden Cost of Buying a Property in Dubai


Property buyers must factor fees that are not included in the net selling price when purchasing property in Dubai.  The Dubai Land Department(DLD) has several costs that must be paid to purchase a property in Dubai. Listed are government costs for buying a property.

•The Dubai Land Department charges 4% of the sales price as transfer fees plus a knowledge fee of AED 430 for a plot, AED 40 for off plan property and AED 580 for apartments and offices.

•The DLD requires a Mortgage Registration Fee of 0.25% of the loan amount including AED 290.

•A Registration Trustee Appointment fee must be paid in cash and cost AED 4,000 through title deed and 5,000 through off plan.

•Property developers in Dubai charge a No Objection Certificate fee (NOC). The NOC fee ranges from AED 500-5000 depending on the property developer. Developers might handover a property 5% smaller than the listed size. For example, a property listed at 1,000 sq.ft will be 950 sq.ft upon delivery. Property developers charge a cash guarantee deposit of 10% of the selling price.

The Dubai Electricity and Water Authority(DEWA) fees for newly transferred properties

Apartment/Office - AED 2,000 refundable deposit + AED 100 reconnection charge (may vary depending on the no. of installed meter) + AED 30 knowledge/innovation fee

Villa - AED 4,000 refundable deposit + AED 100 reconnection charge(may vary depending on the no. of installed meter) 
* Security deposit is refundable once property is sold 



Apartment - AED 2,000 refundable security deposit + roughly AED 500 advance quarterly demand charges 
Office - AED 4,000 refundable security deposit + roughly AED 500 advance quarterly demand charges 
* For primary owner a connection fee of AED 2,000 + admin fee of AED 1,000 should be paid on top of the security deposit 
* Security deposit is refundable once property is sold  

ISTA (for Citywalk)

Connection Fee - AED 200

Refundable Security Deposit:

  • AED 1,500 (Studio/ 1 Bedroom)
  • AED 2,000 (2 BR)
  • AED 3,000 (3 BR)
  • AED 3,500 (4 BR)


Fees related to the property transfer that are usually paid by the Buyer:

Transfer Fees4% of the selling price + AED 580 if apartment/office/villa, 430 AED if land, AED 40 if offplanDubai Land Department via manager's cheque
Agency Fee2% of the selling price (may vary as per agreement with the buyer/seller)Broker
Sales Progression (if applicable)AED 2,500 (if cash sale)Broker
AED 4,000 (if finance sale)
Registration Trustee FeeAED 4,000 (if selling price is more than AED 500,000)Cash
AED 2,000 (if selling price is less than AED 500,000)
Mortgage Registration Fee0.25% of loan amount + AED 290 (if finance buyer)Dubai Land Department
No Objection CertificateNOC fees used to range between AED 500-5,000, but in Q4, 2021 these fees have been waived and not applicable anymore.-
Refundable Security Deposit (if applicable)varies per DeveloperDeveloper


Fees relating to property transfer that usually paid by the Seller:

Sales Progression (if applicable)AED 2,500 (if cash seller)Broker
AED 4,000 (if finance seller)
Mortgage Discharge Fee (if finance seller)AED 1,290 (if commercial bank)Dubai Land Department
AED 1,560 (if Islamic Bank)
Property Blocking Fee (applicable for Finance Seller to Cash/Finance BuyerAED 1,520Dubai Land Department
Trustee Fees (applicable for property blocking & releasing seller's mortgage)AED 300Cash

Buying land or a plot in Dubai is an enticing proposition for investors and future homeowners alike. However, aside from financial considerations, you also need a deeper understanding of the distinctions between freehold and leasehold zones, gauge the potential return on investment based on location, and navigating the legal and financial intricacies unique to the Emirate. As Dubai continues to expand and evolve, prospective buyers should arm themselves with comprehensive knowledge to make well-informed decisions in this vibrant property market.

  •  jeddy   

    (0) (0)
    Nice post
  •  Nick   

    (0) (0)
    Thanks for this! Really helpful!
  •  Nico   

    (0) (0)
    What about fees for buildingmaintenance and facilities? These are pretty significant as well.

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