How much does it really cost to buy property in Dubai?

Budget an additional 7–10% above the purchase price: the 4% DLD transfer fee, 2% agent commission + VAT, mortgage fees, NOC and legal charges. On AED 1.5M expect roughly AED 115,000–150,000 in transaction fees.

Is there stamp duty in Dubai?

No — nor capital gains tax, inheritance tax or annual property tax. The 4% DLD transfer fee serves a similar function at the point of purchase.

What is the DLD fee when buying property in Dubai?

4% of the purchase price plus a small admin fee (AED 580 for apartments, AED 430 for land), paid by the buyer at title deed registration.

Are there ongoing costs after buying?

Yes — annual service charges of AED 8–50+/sq ft depending on the development, DEWA utilities, building insurance, mortgage life insurance if financed, and 8–12% of rent for property management if let.

How much cash do I need upfront with a mortgage?

Expats put down a minimum 20% (25% above AED 5M) plus all transaction costs in cash — these cannot be financed. On a AED 1.5M property at 70% LTV, roughly AED 570,000 total cash.

Do I need a lawyer to buy property in Dubai?

Not legally mandatory but strongly recommended for resale, off-plan and high-value deals. Conveyancing runs AED 6,000–15,000 and often saves more by catching issues before completion.

Hidden Costs of Buying Property in Dubai

The listed price is only the beginning. The true costs of buying in Dubai add 7–10% on top before you collect the keys. No stamp duty, no capital gains tax, no annual property tax — but the DLD charges a transfer fee, agents charge commission, developers levy NOC fees, and banks add mortgage charges. Here is every line item for 2026, with a fully worked AED 1.5M example.

The DLD transfer fee — your biggest one-off cost

4% of the purchase price, paid at title deed transfer. Mandatory, non-negotiable, all property types. Plus a small admin fee: AED 580 for apartments and offices, AED 430 for land. By convention the buyer pays the full 4%, though some off-plan developers split or absorb it as a launch incentive — get that in writing.

Agent commission

2% of the price plus 5% VAT on the commission. On AED 1.5M: AED 30,000 + 1,500 VAT = AED 31,500. RERA-registered agents earn it on successful transfer — verify the broker card before engaging.

The NOC fee — often overlooked, always required

The developer's No Objection Certificate confirms service charges are settled and clears the transfer; without it the DLD won't register the sale. AED 500–5,000 depending on the developer (Emaar and Nakheel sit at the higher end). Convention says the seller pays — but it's negotiable, so confirm in the MOU. NOC delays are among the most common causes of transaction hold-ups.

Mortgage-related costs

Mortgage registration (DLD): 0.25% of the loan + AED 290
Valuation: AED 2,500–3,500 (some banks absorb it)
Bank arrangement fee: ~1% of loan, sometimes capped at AED 10,000
Life insurance: 0.3–0.6% of the outstanding loan per year (required)
Building insurance: AED 1,000–2,500/year

Conveyancing, DEWA and the rest

Legal/conveyancing: AED 6,000–15,000, recommended for resale, off-plan and high-value deals. DEWA activation: AED 2,110 including a refundable AED 1,000 deposit for apartments (AED 2,000 villas). District cooling deposit: AED 1,000–5,000 to Empower or Tabreed where applicable. Broadband install: AED 150–500.

Ongoing costs owners often miss

Cost	Typical range
Service charges — affordable apartments	AED 8–14 /sq ft/yr
Service charges — mid-tier	AED 15–25 /sq ft/yr
Service charges — premium/luxury	AED 25–50+ /sq ft/yr
Property management (if letting)	8–12% of annual rent

On a 1,000 sq ft mid-tier apartment that's AED 15–25K/year in service charges alone — check the RERA service charge index for any building before you offer.

Worked example: AED 1.5M apartment, 70% LTV

Cost item	Rate	AED
DLD transfer fee	4%	60,000
DLD admin fee	flat	580
Agent commission	2% + VAT	31,500
NOC fee (budgeted)	mid-range	2,000
Mortgage registration	0.25% + 290	2,915
Valuation	est.	3,000
Bank arrangement fee	1% of loan	10,000
Conveyancing	est.	8,000
DEWA connection	flat	2,110
Total transaction costs	~8%	~120,105
Total cash at completion	30% deposit + costs	~570,105

Key takeaway: transaction costs add ~AED 120K (~8%) — and with the 30% down payment, total upfront cash lands near AED 570K. This is why professionals advise budgeting 7–10% above the price. The full purchase sequence is in the complete buying guide.

FAQ

Is there stamp duty in Dubai?: No — and no capital gains, inheritance or annual property tax. The 4% DLD fee is the closest equivalent, once, at purchase.
Who pays the NOC fee?: By convention the seller — but it's negotiable; state it clearly in the MOU.
Can transaction costs be financed?: No — the 7–10% must be funded in cash on top of your deposit.
Do I need a lawyer?: Not mandatory, but strongly recommended for resale, off-plan and high-value deals (AED 6–15K, usually money well spent).

Plan with real numbers

I walk every client through a personalised cost breakdown before they make an offer — never a surprise on completion day. For running costs after handover, see service charges explained and chiller and utility costs. Get your breakdown.

The hidden costs of buying in Dubai — every fee, spelled out.