Buying Guides
Dubai property buying costs, explained properly
The price is not the price. Here is every fee a buyer actually pays in Dubai — transfer, trustee, agency, mortgage and the ones people forget — with realistic numbers.
Awan Properties EditorialPublished 29 July 2026Updated 10 August 20266 min read
Dubai purchases are refreshingly fee-transparent compared with most markets, but buyers still get surprised because the costs arrive from four different directions. Here is the full picture on a standard ready-property purchase.
The unavoidable ones
Dubai Land Department transfer fee: 4% of the purchase price, plus a small admin fee. Trustee office fee: AED 4,200 including VAT for properties above AED 500K. Agency commission: typically 2% plus VAT. On a AED 1.45M apartment, these total roughly AED 92K — call it 6.3% on top of the price.
If you're using a mortgage
Add mortgage registration at 0.25% of the loan amount plus AED 290, a bank arrangement fee commonly up to 1% of the loan, and a valuation fee of AED 2,500–3,500. Banks will typically lend up to 80% for residents on a first property under AED 5M, which means your genuine cash requirement is the 20% deposit plus roughly 8% in combined fees.
The ones people forget
Pro-rated service charges settle at transfer — on larger villas this can be a five-figure adjustment. Utility deposits and connection fees are modest but immediate. And if you're buying tenanted, remember the deposit transfers with the tenancy. None of these should change your decision; all of them should be in your spreadsheet before you offer.
Common questions
Who normally pays the transfer fee?
By convention in Dubai the buyer pays the 4% DLD fee in full, though it is occasionally split by negotiation — get any such agreement in the MOU.
Are there annual property taxes in Dubai?
There is no annual property tax or capital gains tax. Owners pay building service charges; landlords' tenants pay the 5% housing fee via DEWA bills.
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