The listing price is only the starting point. Here is an itemised breakdown of one-off and annual costs when buying property in Dubai, with a worked example on an AED 1.5M apartment.
The first question every overseas buyer asks: "If the apartment is AED 1.5 million, what will I actually pay?" More than the price, but it's entirely predictable. Here's the breakdown.
One-off costs at purchase
DLD transfer fee: 4%. The biggest item is the Dubai Land Department fee of 4% of the price, paid in practice by the buyer. It also applies to off-plan purchases (at Oqood registration), though developers sometimes run promotions that cover part of it.
Title deed and admin fees. Small fixed DLD charges, in the range of a few hundred dirhams.
Registration Trustee fee. Transfers are processed at DLD-licensed trustee offices, and the fee is a few thousand dirhams plus 5% VAT, depending on the price.
Agency commission: typically 2%. On the secondary market the buyer's agent usually charges 2% + 5% VAT. When you buy off-plan directly from the developer there is normally no buyer commission.
NOC fee. Charged by the developer for the No Objection Certificate. It's usually paid by the seller, but agree on it in Form F.
If you finance:
- mortgage registration of 0.25% of the loan plus a small fixed fee,
- a bank arrangement fee (often around 1% of the loan, varies by bank),
- valuation (a few thousand dirhams),
- mandatory life and property insurance.
Worked example: AED 1,500,000 ready apartment, cash purchase
| Item | Approx. (AED) |
|---|---|
| Purchase price | 1,500,000 |
| DLD fee (4%) | 60,000 |
| Agency commission (2% + VAT) | 31,500 |
| Trustee & DLD admin fees | ~5,000 |
| Total | ~1,596,500 |
That's roughly 6.4% on top of the price, and 7–8% with a mortgage. Run your own numbers in the DLD cost calculator.
Annual running costs
- Service charges, billed per square foot per year and varying widely by building. Always request the current rate before buying; approved rates are published by the DLD.
- District cooling in some buildings, with a fixed capacity charge.
- Insurance and maintenance.
- If you rent out: Ejari registration, a management fee (commonly 5–8% of annual rent for long-term lets, much more for holiday homes), and permits for short-term rental.
- Housing fee, billed through DEWA and based on the annual rental value.
What you don't pay
Individuals in Dubai pay no annual property tax and no personal income tax on rental income. That doesn't make the income tax-free in your country of residence, so check your home-country rules.
Key takeaways
- Budget 6–8% above the price for one-off costs.
- Service charges are the most important running cost. Verify them.
- Always judge yield on a net basis. Use the rental yield calculator.
This article is for information only and is not investment, legal or tax advice. Fees and rules may change; verify current conditions before deciding.
Don't take my word for it, run the numbers
Check the numbers in this article against your own figures.
