Guide
What it really costs to buy property in Dubai
By Reem Al Khatib, founder, Yield Properties (RERA ORN 48756) ·
On a ready property bought in cash, plan for roughly 6 to 7% on top of the price. With a mortgage, it's closer to 7 to 8%. Banks don't lend against these costs, so they come out of your own pocket on transfer day.
Here's every fee on a typical resale, what it costs and who usually pays.
The fees on a ready (resale) property
DLD transfer fee
- Amount
- 4% of the price
- Who usually pays
- Buyer (legally split 50/50, but in practice the buyer pays it all)
Title deed issuance
- Amount
- AED 580
- Who usually pays
- Buyer
Registration trustee fee
- Amount
- AED 4,000 + 5% VAT (AED 2,000 + VAT under AED 500,000)
- Who usually pays
- Buyer
Agency commission
- Amount
- 2% of the price + 5% VAT
- Who usually pays
- Buyer
Developer NOC
- Amount
- AED 500 to 5,000 depending on the developer
- Who usually pays
- Usually the seller. Check your MOU
Small DLD service fees
- Amount
- Around AED 10 each
- Who usually pays
- Buyer
| Fee | Amount | Who usually pays |
|---|---|---|
| DLD transfer fee | 4% of the price | Buyer (legally split 50/50, but in practice the buyer pays it all) |
| Title deed issuance | AED 580 | Buyer |
| Registration trustee fee | AED 4,000 + 5% VAT (AED 2,000 + VAT under AED 500,000) | Buyer |
| Agency commission | 2% of the price + 5% VAT | Buyer |
| Developer NOC | AED 500 to 5,000 depending on the developer | Usually the seller. Check your MOU |
| Small DLD service fees | Around AED 10 each | Buyer |
If you're using a mortgage
Mortgage registration (DLD)
- Amount
- 0.25% of the loan + about AED 290
Bank arrangement fee
- Amount
- Up to 1% of the loan + VAT (some banks waive it)
Valuation
- Amount
- AED 2,500 to 3,500
| Fee | Amount |
|---|---|
| Mortgage registration (DLD) | 0.25% of the loan + about AED 290 |
| Bank arrangement fee | Up to 1% of the loan + VAT (some banks waive it) |
| Valuation | AED 2,500 to 3,500 |
Worked example: AED 2,000,000 apartment
Illustrative figures for a ready apartment.
DLD transfer fee (4%)
- Cash
- AED 80,000
- With a 75% mortgage (AED 1.5M loan)
- AED 80,000
Title deed
- Cash
- AED 580
- With a 75% mortgage (AED 1.5M loan)
- AED 580
Trustee fee + VAT
- Cash
- AED 4,200
- With a 75% mortgage (AED 1.5M loan)
- AED 4,200
Agency 2% + VAT
- Cash
- AED 42,000
- With a 75% mortgage (AED 1.5M loan)
- AED 42,000
Mortgage registration
- Cash
- With a 75% mortgage (AED 1.5M loan)
- AED 4,040
Arrangement fee 1% + VAT
- Cash
- With a 75% mortgage (AED 1.5M loan)
- AED 15,750
Valuation
- Cash
- With a 75% mortgage (AED 1.5M loan)
- AED 3,000
Total on top of the price
- Cash
- AED 126,780 (6.3%)
- With a 75% mortgage (AED 1.5M loan)
- AED 149,570 (7.5%)
| Cash | With a 75% mortgage (AED 1.5M loan) | |
|---|---|---|
| DLD transfer fee (4%) | AED 80,000 | AED 80,000 |
| Title deed | AED 580 | AED 580 |
| Trustee fee + VAT | AED 4,200 | AED 4,200 |
| Agency 2% + VAT | AED 42,000 | AED 42,000 |
| Mortgage registration | AED 4,040 | |
| Arrangement fee 1% + VAT | AED 15,750 | |
| Valuation | AED 3,000 | |
| Total on top of the price | AED 126,780 (6.3%) | AED 149,570 (7.5%) |
With a mortgage you also need the deposit in cash. Here that's AED 500,000, so the total cash needed on the day is about AED 650,000.
Run these numbers in the calculator
Off-plan is different
On off-plan you still pay the 4% DLD fee, but you pay it when the contract is registered (Oqood), not at handover. Developers often run offers that cover part or all of it. The developer usually pays the agent, so there's normally no 2% commission for you. Ask the developer for the Oqood registration fee in writing, because it varies.
Why this matters for your yield
These costs are part of what you paid, so they belong in your yield calculation. On an AED 2M apartment, leaving out AED 127,000 of fees makes your return look better than it is. Our net yield calculator includes them, so you see your real return.
Before you transfer: fees change from time to time. Always confirm the final figures with your trustee office or on the Dubai Land Department website.