Most buyers focus on the price and the deposit. Then the closing costs arrive, and a round number turns into something several thousand dirhams higher.
None of it is hidden. It is all set out in Dubai’s fee structure. The problem is that nobody adds it up for you before you make an offer.
This guide does that. It covers every cost of buying property in Dubai in 2026, who pays each one, and how the total shifts between a cash and a mortgage purchase. It also shows what those costs do to your real return, because the fee you pay on day one reshapes the yield you earn for years.
You can browse current property for sale in Dubai alongside this guide to weigh real prices against the fees below.
How much it costs
Core transaction fees come to roughly 6 to 7 percent of the price for a cash purchase. Once you add incidentals like insurance and conveyancing, budget 7 to 8 percent.
With a mortgage, expect 8 to 10 percent, because financing adds its own charges.
Here is the approximate total in fees for a cash purchase across common price points.
| Property price | Approx. total fees (cash) | As % of price |
| AED 1,000,000 | ~AED 68,000 | ~6.8% |
| AED 1,500,000 | ~AED 98,500 | ~6.6% |
| AED 2,000,000 | ~AED 129,000 | ~6.5% |
| AED 3,000,000 | ~AED 190,000 | ~6.3% |
| AED 5,000,000 | ~AED 312,000 | ~6.2% |
These cover the core fees. Add a small buffer for insurance, conveyancing, and any mortgage costs. The largest single item is one government fee, so start there.
DLD transfer fee
The Dubai Land Department charges 4 percent of the agreed price. It applies to every sale, for nationals, residents, and overseas buyers alike. There is no discount for foreign nationals.
By law the buyer pays, and in practice the buyer covers the full 4 percent. Some developers absorb part of it on off-plan launches as an incentive, and it can occasionally be split with the seller.
Treat the full 4 percent as your baseline. On an AED 1.5 million home that is AED 60,000. On an AED 3 million home it is AED 120,000.
Trustee and admin fees
The transfer is processed at a DLD-approved trustee office. This costs AED 4,000 for properties under AED 500,000, or AED 4,200 above that, plus 5 percent VAT.
A DLD administrative and title deed charge of around AED 580 applies to a ready property, or AED 40 for an off-plan unit.
These are fixed amounts. They do not scale with the price, so they weigh more on a modest purchase than a large one.
Agency commission
The standard commission is 2 percent of the price plus 5 percent VAT, an effective rate of about 2.1 percent. On the secondary market, the buyer usually pays it.
On off-plan bought directly from a developer, there is often no commission for the buyer, because the developer pays the brokerage. Confirm who carries this cost before you sign.
Reservation deposit
When your offer on a resale property is accepted, you pay a reservation deposit of around 10 percent to the seller through the brokerage. This happens when you sign the Memorandum of Understanding, or Form F.
This is part of the price, not an extra fee. But it is cash you need early, so plan for it.
Mortgage costs
Paying cash? Skip this section. Financing? The bank and the DLD add several charges.
The DLD mortgage registration fee is 0.25 percent of the loan, plus about AED 290. On a AED 2.4 million loan, that is AED 6,000.
Your lender also requires a valuation, usually AED 2,500 to AED 3,500. Some banks add an arrangement fee of up to 1 percent of the loan. Not every lender charges it, so compare offers, because on a large loan it is significant.
Down payment
Resident expatriates generally need at least 20 percent down. Non-residents are usually asked for 35 to 40 percent of the value.
VAT
This question comes up often, and the answer is reassuring. Resale residential property is exempt from VAT, so there is no 5 percent charge on the price of a second-hand home.
VAT of 5 percent does apply to commercial property, and to services around your purchase. That is why the agency commission is quoted as 2 percent plus VAT.
For new or off-plan units, confirm the treatment with the developer, as the first sale of some new property is handled differently.
NOC and off-plan fees
On a resale, the seller obtains a No Objection Certificate from the developer, confirming no outstanding service charges. The NOC fee is AED 500 to around AED 5,000 and is normally paid by the seller.
For off-plan properties in Dubai, the process differs. Your purchase is recorded on the DLD’s Oqood system instead of an immediate title deed.
The 4 percent DLD fee is paid at the Oqood stage and later converts into your title deed, so you are not charged twice. Many off-plan buyers also pay for an optional snagging inspection, usually AED 800 to AED 2,500.
Utilities and setup
You connect utilities through the Dubai Electricity and Water Authority. The refundable deposit is around AED 2,000 for an apartment and AED 4,000 for a villa.
If the community uses district cooling, expect a separate deposit and connection charge.
Planning to let the property? Budget for Ejari, Dubai’s tenancy registration, at AED 170 plus a small typing fee. Owner-occupiers who activate DEWA without a tenancy do not pay it.
Cost example
Numbers make this concrete. The example assumes a ready apartment, and you can compare it against current apartments for sale in Dubai.
The first column is an AED 1.5 million apartment in cash. The second is an AED 3 million property with an 80 percent mortgage.
| Cost | AED 1.5M (cash) | AED 3M (mortgage) |
| DLD transfer fee (4%) | 60,000 | 120,000 |
| DLD admin and title deed | 580 | 580 |
| Trustee office fee (+VAT) | 4,410 | 4,410 |
| Agency commission (2% +VAT) | 31,500 | 63,000 |
| Mortgage registration (0.25%) | not applicable | 6,290 |
| Property valuation | not applicable | 3,000 |
| DEWA deposit | 2,000 | 2,000 |
| Approximate total | ~AED 98,490 | ~AED 199,280 |
The cash purchase adds about 6.6 percent to the price. The mortgaged one is similar before any bank arrangement fee, which can add AED 20,000 or more.
This is the gap between the listing price and the money that actually leaves your account.
Hidden and ongoing costs
Everything above is a one-time cost. One recurring cost shapes your investment far more, and it is the one most often missed.
Service charges
The annual service charge covers building and community maintenance. It is billed per square foot.
Rates vary widely, from a few dirhams per square foot in mid-market areas to well over AED 30 in prime waterfront towers. Always ask for the exact figure before you buy.
Gross vs net yield
Here is why it matters for anyone investing in Dubai property. Buyers and brokers usually quote gross yield, which ignores both your purchase costs and your service charges.
Fold those in and the picture changes. An apartment advertised at 7 percent gross does not really return 7 percent.
Your true cost base is the price plus the fees you paid to acquire it. Your income is the rent minus service charges and any management fee. The honest figure, your net yield, is often a point or two lower.
None of this makes Dubai a poor investment. But comparing two properties on gross yield alone can mislead you, and the buyer who budgets for the full cost is the one who is not disappointed by the return.
What you don’t pay
Dubai’s cost structure is front-loaded for a reason. There is no annual property tax, no capital gains tax, no tax on rental income, and no stamp duty.
In most major markets, you would pay some combination of those every year you hold the asset.
Here you pay most costs once, at purchase, and keep what the property earns. Over several years, the taxes you avoid often add up to more than the fees you paid to buy. The trade is simple: higher upfront costs, very low ongoing ones.
FAQs
How much does it cost to buy property in Dubai as a foreigner?
Foreign buyers pay the same fees as residents, with no surcharge. Budget 7 to 8 percent of the price for cash, and 8 to 10 percent with a mortgage. The bulk is the 4 percent DLD fee and 2 percent agency commission.
What are the hidden costs of buying property in Dubai?
The costs most often missed are the annual service charge, the DEWA deposit, mortgage arrangement and valuation fees, optional snagging on off-plan, and home insurance, which is usually required with a mortgage.
Do you pay VAT when buying property in Dubai?
Resale residential property is exempt from VAT. The 5 percent rate applies to commercial property and to services such as the agency commission. For off-plan, confirm with the developer.
Who pays the DLD fee, and is it negotiable?
The buyer pays, and almost always covers the full 4 percent. It is not routinely negotiable, though developers sometimes absorb it on off-plan launches.
How much deposit do I need to buy property in Dubai?
On a resale, you pay around 10 percent when you sign the Memorandum of Understanding. With a mortgage, expect at least 20 percent down as a resident, or 35 to 40 percent as a non-resident.
How much do I need for the Dubai Golden Visa?
A property purchase of AED 2 million or more qualifies for the 10-year Golden Visa, with family sponsorship. This applies to ready or off-plan, cash or mortgage.
Final word
The cost of buying property in Dubai is predictable once you see it in full. That predictability is what lets you budget accurately, negotiate from knowledge, and judge an investment on its real numbers.
If you want a cost breakdown tailored to a specific property, our team can prepare one and walk you through every fee before you commit.