The Real Cost of Buying Property in Dubai: DLD Fees, Commission and Other Charges

A common rule of thumb is to add about 6–7% to the purchase price for a cash buyer in Dubai, and a little more if you are taking a mortgage. Here is where that goes.

Government fees

• DLD transfer fee — 4% of the purchase price. The largest cost. It is customarily paid by the buyer, although on some off-plan launches the developer covers part of it as a promotion.
• Title deed issuance and administration fees — a few hundred dirhams.
• Registration trustee fee — a fixed fee, plus VAT, that depends on the property value (commonly AED 2,000 below AED 500,000 and AED 4,000 at or above it).

Agency commission

On a resale property the usual commission is 2% of the price plus 5% VAT. On off-plan purchases bought directly from a developer, the buyer normally pays no commission.

If you are taking a mortgage

• Mortgage registration fee — 0.25% of the loan amount, plus a small administration fee, paid to the DLD.
• Bank arrangement fee — often up to 1% of the loan, plus VAT.
• Valuation fee — typically around AED 2,500–3,500.
• Life and property insurance — required by lenders; the cost depends on the loan and your age.

Since 2025 banks are no longer allowed to add the DLD fee and commission to the loan, so these must come from your own funds on top of the down payment.

Other costs to plan for

• Developer NOC — on resales, usually paid by the seller.
• Service charges — paid by the owner each year; ask for the building’s current rate per square foot. See service charges explained.
• Utilities connection — DEWA deposit and, where it applies, district cooling registration.
• Furnishing and snagging — for a new home.

A worked example

On a resale apartment bought for AED 1,500,000 in cash, a buyer would typically pay about AED 60,000 in DLD transfer fee, about AED 4,200 for the trustee, and about AED 31,500 in commission including VAT — roughly AED 96,000, or 6.4% of the price, before any mortgage costs.

How to reduce the bill

• Look at off-plan launches where the developer pays some or all of the DLD fee.
• Compare banks: arrangement fees and valuation fees vary and are sometimes waived.
• Consider distress sale properties, where a lower price reduces every percentage-based fee.

Use our mortgage calculator to see the monthly payment alongside these one-off costs.

Fees and rules change. Confirm current figures with the Dubai Land Department (DLD) or your advisor before you commit — this guide is general information, not legal or financial advice.