What Are the Hidden Costs of Buying a Property in the UAE?

Buying property in Dubai can be exciting, a new home or investment, but the advertised price is just the beginning. You’ll need to budget for many extra fees that often surprise buyers. Experts say a practical rule of thumb is to plan for around 6–10% above the purchase price in additional costs. These hidden costs include mandatory government charges, agent commissions, financing fees, and ongoing expenses. Local experts like RGP Properties stress full transparency: “unexpected fees such as DLD registration, service charges, maintenance, broker fees, and utility costs” should be on every buyer’s radar. Below we break down the major fees (with typical amounts) and show how to prepare.

Government & Registration Fees

One of the biggest surprises is the Dubai Land Department (DLD) fees. When you transfer ownership, Dubai’s government charges 4% of the sale price. By law this 4% is split 50/50, but in practice buyers usually pay the full 4% in cash. On top of that, there are fixed admin charges for registering the title deed. For example, the title deed issuance fee is around AED 580 (per unit). You’ll also pay a trustee office registration fee – about AED 2,000–4,000 depending on price – plus 5% VAT. In practice this means roughly AED 2,100 for properties under AED 500k, or AED 4,200 (with VAT) for higher-value properties.

·       DLD Transfer Fee – 4% of the purchase price (often paid fully by the buyer).

·       Title Deed/Admin Fee – ~AED 580 (fixed government charge).

·       Registration/Trustee Fee – AED 2,000–4,000 (see above), plus 5% VAT.

For off-plan purchases, additional registration (the Oqood fee) applies. Each off-plan unit must be registered with DLD, typically costing about AED 3,000 per unit. (The regular 4% DLD fee is still due later on, usually at project handover) These registration steps are unavoidable, so factor them into your upfront costs.

Broker Commissions & Developer Fees

Another large chunk of costs comes from agent and developer fees. If you use a broker (highly recommended for complex transactions), expect a commission of about 2% of the sale price + 5% VAT. Typically the buyer pays this upon transfer. Note: if you buy off-plan directly from a developer, the seller (developer) usually covers the sales fee, so you save the 2% commission in that case.

In resale deals, you’ll also need a No Objection Certificate (NOC) from the developer to transfer ownership. NOC fees can vary widely, from a few hundred up to several thousand dirhams. A typical range is AED 500–5,000 (sometimes paid by the seller, but this should be clarified in your contract).

·       Agency (Broker) Commission – ~2% of price plus 5% VAT.

·       Developer NOC Fee – ~AED 500–5,000 (varies by project).

Financing and Bank Charges

If you’re taking a mortgage, you’ll see more fees. The DLD charges 0.25% of the loan amount to register the mortgage, plus an admin fee of about AED 290. Banks also levy their own charges: typically around 0.5–1% of the loan as processing or arrangement fees, plus a property valuation fee (usually AED 2,500–3,500 based on property type). For example, a AED 1,000,000 loan could incur roughly AED 2,500 (0.25%) + AED 290 in DLD fees, plus up to AED 10,000 or more in bank costs overall.

·       Mortgage Registration – 0.25% of loan + AED 290 admin.

·       Bank Processing Fees – ~0.5–1% of loan.

·       Property Valuation – ~AED 2,500–3,500 (bank charge).

Even if you pay cash, your bank appraisal may be needed if you use it to refinance or rent, so keep valuation in mind. If possible, compare loans or negotiate fees to save money.

Ongoing & Unexpected Costs

Beyond closing costs, Dubai property ownership carries ongoing charges that many buyers overlook. Annual service charges (community fees) pay for building maintenance, security, landscaping, pools, etc. These can amount to roughly AED 10–30 per sq.ft per year. For example, a 1,000 sq.ft apartment might have AED 10,000–30,000 in yearly fees. Luxury communities with lots of amenities skew higher, so always check the current service charge rate before buying.

New owners must also pay to set up utilities. A DEWA (electricity/water) deposit is typically AED 2,000 for apartments (AED 4,000 for villas). There may also be connection fees or district cooling setup costs depending on the building. If you plan to rent out your property, remember the annual Housing Fee (5% of annual rent, paid via your utility bill) and a compulsory Ejari tenancy registration (to register the lease).

Other “hidden” costs include: mandatory property insurance (often ~AED 1,000–2,000/year for medium properties) and life insurance if you have a mortgage, plus the 5% VAT on most services (brokerage, trustee fees, maintenance services, etc.). Don’t forget small admin fees – for example, the DLD knowledge fee (~AED 10) on each transaction. All together, these extra charges can add a significant layer to your overall budget.

Partnering with RGP Properties

Navigating these many fees can be daunting – that’s where a trusted agent like RGP Properties comes in. RGP’s team emphasizes transparency and will guide you through every line item. They can help you estimate total costs (about 7–10% more than the price, typically) and avoid surprises. RGP’s advisors are RERA-certified and experienced with expat and investor needs, so they can clarify who pays each fee and negotiate where possible.

Ready to get started? Explore RGP Properties’ current Dubai listings and connect with their experts to plan your purchase. With RGP’s support, you’ll have clear numbers for all Dubai property fees and a smooth buying process.

Key Takeaway

·       Budget 6–10% extra on top of the purchase price for fees and costs. The 4% DLD transfer fee alone accounts for much of this.

·       Major fees include the 4% DLD fee plus administrative charges (title deed/trustee office), broker commission (~2%+VAT), and developer NOC fees.

·       Don’t forget mortgage costs (0.25% of loan + AED 290) and bank charges, as well as annual service charges (roughly AED 10–30/sq.ft. per year) and utility deposits.

·       Work with a knowledgeable agent (like RGP Properties) who can explain each DLD charge and hidden cost up front. Proper planning and transparency are key to avoiding financial surprises.

Make sure to consider approximately 7-8% of the purchase price as part of your investment. The exact percentage depends on whether you’re buying off-plan or ready, whether you’re financing, and who you buy through.

By doing your homework and consulting experts, you’ll go into your Dubai purchase fully prepared, with no unexpected costs catching you off guard.

In brief: All costs