The actual costs of Buying a property in Dubai

Buyers in Dubai should be aware that in addition to the net selling price, some extra costs have to be taken into account when purchasing a property.  These are typically paid to the government, the intermediary agents handling the sale and the developer managing the building or residence the unit bought is located in.

Government Fees

Dubai Land Department (DLD) Fees4% of the purchase price + AED 580 admin fee for apartments and offices or AED 430 for land or AED 40 for off-plan
Property Registration FeeFor properties valued below AED 500,000: AED 2,000 +5% VAT

For properties valued above AED 500,000: AED 4,000 + 5% VAT

Dubai Land Department Mortgage Registration Fees0.25% of the loan amount + AED 290

In Dubai, all purchases must be registered with the DLD. If the registration is not completed within 60 days from signing the initial agreement between buyer and seller, purchase will be void and the seller entitled to keep whatever deposits made by the buyer in order to secure the unit.

It is common practice that  the buyer pays the entire 4% to the DLD.  Although unusual., It is always possible for buyer and seller to negotiate a 50/50 split or for the seller to bear the costs entierly.

The buyer also bears the cost of the Property Registration Fee.

When the home is purchased via a bank loan, the buyer must also pay an additional fee of 0.25% of the total loan amount to the DLD to register the mortgage against the property.

Agency Fees

Real Estate Agent Fees2% of the purchase price + 5% VAT
Sales progression FeeAED 2,500 (if cash sale) to AED 4,000 (if finance sale)

Having the right agent can make your transaction much smoother. 

An agent  assists with the entire buying process end-to-end, ensuring you are well informed along the way and understand the related costs.

This service has a cost: In Dubai, the usual agent fee is  2% plus VAT, (payable on completion of the deal) .

Sales progression fees are another cost applicable to the buyer. They are usually paid to agencies to ensure that all documentation, contracts and financial arrangements associated with the transaction are legally in order.

Developper Fees

  • NOC fees (Non Opposition certificate issued by the developer).
    • these can range between AED 500 and AED 5,000 and are payable to the developer, usually by the seller. Certain developers also levy a refundable deposit upon the buyer which is only refunded when the buyer presents the new title deed at the developer’s office and their records are updated.
  • Maintenance and service charge:

    • Once the property is transferred, owners need to pay service charges. Basically, this is the maintenance charges for various amenities like elevator, swimming pool, security cameras etc. They are calculated every year and are voted by an elected owner’s committee.

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