When purchasing property in Dubai, it’s essential to be aware of both one-time and ongoing costs. Understanding these expenses will help you make a well-informed decision and ensure your budget is adequately prepared. Below is an overview of the key costs associated with buying property in Dubai.

• Dubai Land Department (DLD) Fees

  • DLD Fee: 4% of the property’s purchase price, plus an AED 580 administrative fee for the title deed.

  • Property Registration Fee: AED 2,000 to 4,000 plus 5% VAT, depending on the property value.

  • Mortgage Registration Fee: 0.25% of the mortgage amount, plus AED 290 administrative fee.

• Down Payment
  Typically ranging between 20% to 25% of the property value, the down payment amount may vary depending on your residency status and the property’s price.

• Real Estate Agency Fee
  A standard commission of 2% of the purchase price, plus 5% VAT, is payable to the real estate agent handling the transaction.

• Conveyancing Fees
  A conveyancing fee, ranging from AED 6,000 to AED 10,000, is charged for legal services related to the property transaction, ensuring compliance with UAE property laws.

• Mortgage-Related Costs

  • Bank Mortgage Arrangement Fee: Typically 1% of the loan amount, plus 5% VAT.

  • Property Valuation Fee: AED 2,500 to AED 3,500, plus 5% VAT, for an official property valuation required by the bank.

Discover more about the mortgage process in Dubai here.

• Insurance Costs

  • Home Insurance: Approximately AED 1,000 annually, though this may vary based on the size and value of the property.

  • Life Insurance: Typically charged at 0.4-0.8% per annum on the reducing loan balance, often required when financing the property with a mortgage.

• Security Deposit
  A security deposit of 10% of the property’s agreed transaction price is typically required. This deposit is refundable if the transaction does not proceed due to unforeseen circumstances or breaches of contract.

• Service Charges
  Annual service charges are applicable for the maintenance and upkeep of communal areas in residential communities. These fees vary by property type and location.

• DEWA Fees
  The Dubai Electricity and Water Authority (DEWA) charges a deposit for new connections, ranging from AED 2,000 for apartments to AED 4,000 for villas, depending on the property type.

• Empower Fees
  If the property is located within a district cooling area, Empower provides energy-efficient cooling services. The fees for these services include a deposit, consumption charges, and fixed monthly fees, all of which vary depending on the size of the property and usage.

Understanding these costs is crucial for any prospective property buyer in Dubai. By factoring in both one-time and ongoing expenses, you can effectively plan your budget and avoid any unexpected financial burdens during the property transaction process.

• Dubai Land Department (DLD) Fees: 4% of the purchase price + AED 580 admin fee

• Registration Fees: AED 2,000 to AED 4,000 + 5% VAT (depending on property value)

• Down Payment: Typically 20–25% of the property value

• Agency Fee: 2% of the purchase price + 5% VAT

• Conveyancing Fee: AED 6,000 to AED 10,000

• DLD Mortgage registration fee (if applicable): 0.25% of the loan amount + AED 290 admin fee

• Mortgage Arrangement Fee: 1% of the loan amount + 5% VAT

• Property Valuation Fee: AED 2,500 to AED 3,500 + 5% VAT

• Home Insurance: Around AED 1,000 annually

• Life Insurance: 0.4–0.8% per annum on decreasing loan balance

• Security Deposit: 10% of the agreed property price

• DEWA Deposit: AED 2,000 (apartments) to AED 4,000 (villas)