- Home
- United Arab Emirates
- Purchase Costs
Costs of Buying Property in UAE: Fees & Charges
The cost of buying property in Dubai, UAE will vary greatly depending on whether the property is off-plan or key-ready, the location you are moving into, whether you plan to have a permanent residence permit or a long-term visa, and how long the visa will be valid.
As an estimation, buyers can expect to spend approximately 8% of their property value. This estimation and the fees given below are average. Using this information alone, it will be challenging to determine the total cost. For an exact price, please consult with TEKCE professionals. For a more detailed overview, explore our step-by-step guide to the property buying process in the UAE.
Here are the typical Dubai property purchase costs:
- Dubai Land Department Fees (DLD)
- Property Registration Fee
- Agency Fees
- DEWA Fees
- Mortgage Registration Fees
- Property Valuation Fee
- No Objection Certificate (NOC) Fee
Example Property Purchase Cost Calculations in Dubai
To give buyers a clearer idea of the additional costs involved, below are two sample calculations based on a AED 1,000,000 property. The exact fees may vary depending on the property, developer, transaction type, and service provider. Mortgage-related costs are not included in these examples.
Example 1: Buying a Ready Apartment for AED 1,000,000
When buying a ready apartment in Dubai, buyers should generally budget for the Dubai Land Department fee, property registration fee, agency fee, and DEWA connection costs. A No Objection Certificate (NOC) fee may also apply depending on the developer.
| Cost Item | Calculation | Estimated Cost |
| Dubai Land Department (DLD) Fee | 4% of AED 1,000,000 | AED 40,000 |
| Property Registration Fee | AED 4,000 + 5% VAT | AED 4,200 |
| Agency Fee | 2% of AED 1,000,000 | AED 20,000 |
| DEWA Connection | Apartment | AED 2,300 |
| NOC Fee | Estimated | AED 500–5,000 |
| Estimated Additional Costs | AED 67,000–71,500 | |
| Estimated Total Purchase Budget | AED 1,067,000–1,071,500 |
Based on these assumptions, a buyer purchasing a ready apartment for AED 1,000,000 should budget approximately 6.7%–7.2% of the property price in additional costs. The final amount may be higher or lower depending on the agency commission and NOC fee.
Example 2: Buying an Off-Plan Apartment for AED 1,000,000
Off-plan purchases generally have a different cost structure because the property has not yet been handed over. In particular, buyers typically do not need to pay DEWA connection or NOC fees at the time of the initial purchase. Agency fees may also vary depending on the project and developer.
| Cost Item | Calculation | Estimated Cost |
| Dubai Land Department (DLD) Fee | 4% of AED 1,000,000 | AED 40,000 |
| Off-Plan Registration / Administrative Fee | Approximate | AED 40 |
| Agency Fee | 2% of AED 1,000,000 | AED 20,000 |
| DEWA Connection | Not applicable at initial purchase | AED 0 |
| NOC Fee | Not applicable at initial purchase | AED 0 |
| Estimated Additional Costs | AED 60,040 | |
| Estimated Total Purchase Budget | AED 1,060,040 |
Based on these assumptions, an off-plan apartment priced at AED 1,000,000 would require approximately AED 60,040 in additional purchase costs, bringing the estimated initial budget to AED 1,060,040.
*Agency fees for off-plan properties can differ significantly depending on the project and developer. Some developers may offer properties with no buyer-side agency commission.
These examples are intended as general estimates rather than fixed quotations. Buyers should confirm the applicable fees with their real estate agent, developer, bank, and the Dubai Land Department before completing a purchase.
Detailed Explanation of Costs & Fees
Dubai Land Department Fees (DLD)
The DLD transfer fee is standard across all property transactions in Dubai, strictly paid by the buyer and set at 4% of the property value, regardless of whether the purchase is a new build or a resale. In addition to the transfer fee, administrative fees apply, which are AED 580 for apartments, AED 430 for land transactions, or AED 40 for off-plan properties.
There are two main exceptions regarding transfer fees and payment timelines:
Emirate Variation (Abu Dhabi): While standard in Dubai and most emirates, the property transfer fee in Abu Dhabi is set at 2% instead of 4%.
Off-Plan Payment Timeline (Ras Al Khaimah): In most emirates, the transfer fee for off-plan properties must be paid upfront along with the initial down payment. However, in Ras Al Khaimah (RAK), this fee is payable upon handover of the unit.
Property Registration Fee
If the property is valued at less than AED 500,000, the fee would be AED 2,000 + 5% VAT; if the property is valued at more than AED 500,000, the fee is AED 4,000 + 5% VAT.
Agency Fees
It is between 2% and 4% of the property value.
DEWA Fees
DEWA (Dubai Electricity and Water Authority) is the regulating agency in charge of all electricity and water connections in Dubai. The final cost will vary depending on where you live and the kind of property you own. Depending on the number of meters installed, the cost to set up a new DEWA connection ranges from AED 2,300 for an apartment to AED 4,000 for a villa.
Mortgage Registration Fees
Mortgage Registration FeesIf you decide to get a mortgage, you make payments to both the bank and DLD. For DLD, you pay 0.25% of the total mortgage value and AED 290 admin fees. For banks, you pay 1% of the loan amount and 5% VAT.
Property Valuation Fee
The true market worth of the property must be established to establish the interest rate at which you will receive a loan. The bank demands a property valuation for this. The price ranges between AED 2,500 and AED 3,500 with 5% VAT.
No Objection Certificate (NOC) Fee
NOC in Dubai costs from AED 500-5000 depending on the property developer.
If you want to learn more about buying a property in Dubai process, you can contact us now or visit our nearest office to learn more.
Dubai Property Service Charges & Annual Costs
Once the purchase is complete, property owners in Dubai should budget for regular annual ownership costs. The main recurring expense is the service charge, which covers the maintenance and management of the building or residential development.
Service charges are paid by the property owner, not the tenant, regardless of whether the property is rented on a long-term or short-term basis. The charge is calculated per square foot (ft²) and is determined at the building level rather than by the wider area. Each building has an annual service charge rate approved by RERA.
The exact amount varies depending on the building, facilities, age, and level of service. As a general guide, annual service charges in Dubai typically range from AED 8 to AED 35 per ft², although luxury and branded residences can exceed this range.
| Property Type | Typical Annual Service Charge | Example for 1,000 ft² |
| Older or economy apartment | AED 8–12/ft² | AED 8,000–12,000 |
| Standard apartment | AED 12–18/ft² | AED 12,000–18,000 |
| Development with good facilities | AED 18–25/ft² | AED 18,000–25,000 |
| Luxury or branded residence | AED 25–40+/ft² | AED 25,000–40,000+ |
Important: These figures are indicative ranges, not fixed rates. The exact annual service charge must be checked against the RERA-approved rate for the specific building. Your real estate consultant can provide the applicable rate for the properties in the UAE you are considering.
For example, if you own a 1,000 ft² standard apartment with a service charge of AED 15 per ft², your estimated annual service charge would be AED 15,000. This cost remains the owner's responsibility even when the property is rented out.
Property Purchase Costs Across UAE Emirates Comparison
| Cost Item / Entity | Dubai (DLD) | Abu Dhabi (DMT) | Ras Al Khaimah (RAK Municipality) | Sharjah (SRERD) |
| Responsible Authority | Dubai Land Department (DLD) | Department of Municipalities and Transport (DMT) | RAK Municipality - Lands and Properties Sector | Sharjah Real Estate Registration Department (SRERD) |
| Property Transfer Fee | 4% (Typically paid by the buyer) | 2% (Generally split 1% each or as agreed in the contract) | 4% (Paid by the buyer; for off-plan properties, payable upon handover) | 4% (Standard fee applied for non-GCC foreign buyers) |
| Registration / Admin Fee | AED 2,000+ VAT (<AED 500,000) | Approx. AED 1,000 – AED 4,000 (Varies based on application/transaction type) | Approx. AED 1,000 – AED 2,000 (Administrative processing and title deed issuance fee) | AED 500 – AED 1,000 (Registration and documentation fee) |
| NOC (No Objection Certificate) Fee | AED 500 – AED 5,000 + VAT (Paid to the developer) | AED 500 – AED 5,000 + VAT (Paid to the developer) | AED 1,000 – AED 3,000 + VAT | AED 500 – AED 2,000 + VAT |
| Utility Connection Provider | DEWA (Security deposit ~AED 2,300–4,000 + activation fee) | TAQA / ADDC (Security deposit ~AED 1,000 + activation fee) | FEWA / Etihad WE (Security deposit ~AED 1,000–2,000 + activation fee) | SEWA (Security deposit ~AED 1,000–2,000 + activation fee) |
| Real Estate Brokerage Fee | 2% + 5% VAT | 2% + 5% VAT | 2% + 5% VAT | 2% + 5% VA |
| Mortgage Registration Fee | 0.25% of the loan amount + AED 290 admin fee | 0.1% of the loan amount | 0.25% of the loan amount | 0.25% of the loan amount |
FAQ
What are the fees for buying property in the UAE?In addition to the purchase price, buyers pay a DLD transfer fee of 4%, a registration fee, and a title deed issuance fee. For resale properties, the real estate agency commission is 2%. If the property is purchased with a mortgage, additional costs may include the DLD mortgage registration fee of 0.25%, a mortgage broker fee of around 1%, and a processing fee of around 1%. Overall, buyers should budget an additional 7–10% on top of the property purchase price.
How much are Dubai property registration fees?The DLD transfer fee in Dubai is 4% of the amount stated in the sales contract. For example, for a property priced at AED 1,500,000, the fee is AED 60,000. Additional administrative and registration fees of a few thousand AED may also apply.
Who Pays the DLD Transfer Fee, the Buyer or the Seller?In market practice, this fee is always paid by the buyer. The same applies to resale properties. Some developers may cover all or part of the DLD transfer fee as part of a promotional campaign. However, this is not standard practice and is offered as an incentive by the developer.
How are title deed and property purchase costs calculated in Dubai?In a standard property sale in Dubai, the DLD transfer fee is applied as 4% in total. In addition, there are fixed title deed registration fees, usually a real estate consultancy fee of 2% + VAT, and mortgage registration costs if a mortgage is used. The rates are mostly fixed. However, the total cost may show small differences depending on the transaction type, property value, and whether a mortgage is used.
★ If you found this content helpful, please add tekce.com to your Preferred Sources in Google.
Meet our Local agents. Get specialist advice from local experts
EN 
