Cost of Buying Property in Dubai (2026): DLD Fees & Full Breakdown
Buying property in Dubai involves more than the listing price. Between government transfer fees, agency commission and ongoing charges, the total cost of buying property in Dubai can add 7–10% on top of the purchase price. Here is a complete breakdown — including a worked example — so you know exactly what to budget before you sign.
DLD Transfer Fee: 4%
The largest upfront cost is the Dubai Land Department (DLD) transfer fee of 4% of the agreed purchase price, paid at transfer. On a AED 2,000,000 property that is AED 80,000. Buyers typically bear this cost, but it is negotiable — always confirm in the SPA.
DLD Registration Trustee Fee
Paid to the authorised trustee office on the day of transfer:
- Properties priced at AED 500,000 and below: AED 2,000 + 5% VAT
- Properties priced above AED 500,000: AED 4,000 + 5% VAT (AED 4,200 total)
Real Estate Agent Commission: 2%
The buyer typically pays 2% commission (minimum AED 10,000) to their RERA-certified agent. On a AED 2M purchase: AED 40,000. Many developers absorb this on off-plan launches — always confirm upfront.
Mortgage Registration Fee: 0.25%
For financed purchases, the DLD charges 0.25% of the loan amount plus AED 290. On a AED 1,500,000 mortgage: AED 3,750 + AED 290 = AED 4,040. Cash buyers skip this fee entirely.
Property Valuation Fee: AED 2,500–3,500
Mortgage lenders require an independent valuation before approving a loan. Fees typically run AED 2,500–3,500 and are paid to the bank’s appointed valuer. The fee is non-refundable if the loan is later declined.
Service Charges (Annual Ongoing Cost)
As a Dubai property owner you pay an annual service charge to the developer or owners association. Rates vary:
- Apartments (standard): AED 10–22 per sq ft per year
- Premium or waterfront units: AED 20–40+ per sq ft per year
- Villas in master communities: AED 3–8 per sq ft per year
A 900 sq ft apartment at AED 15/sq ft carries AED 13,500 per year in service charges — a key figure for investors calculating gross yield.
Worked Example: AED 2,000,000 Apartment (With Mortgage)
| Cost Item | Amount (AED) |
|---|---|
| Purchase price | 2,000,000 |
| DLD transfer fee (4%) | 80,000 |
| DLD trustee fee (incl. VAT) | 4,200 |
| Agent commission (2%) | 40,000 |
| Mortgage registration (0.25% of AED 1.5M) | 4,040 |
| Property valuation | 3,000 |
| Conveyancing / legal | ~7,500 |
| Total cost to complete | ~AED 2,138,740 |
Off-Plan vs Ready Property: Cost Differences
Many Dubai developers waive the 4% DLD fee on off-plan launches — a genuine AED 80,000 saving on a AED 2M property. Agent commissions are often absorbed by the developer. The trade-off is that your capital is tied up during the construction period, which can run 2–4 years.
For ready properties, all fees are paid on transfer day. You can move in or rent immediately.
How to Reduce Your Buying Costs in Dubai
- Look for off-plan launches with DLD fee waivers — the most common developer incentive.
- Compare mortgage offers from at least three UAE banks — rates and arrangement fees vary significantly.
- Work with a RERA-certified agent to avoid paying inflated or duplicate commissions.
- Buy in a freehold zone to secure full ownership rights as a non-UAE national.
At Palladium, our RERA-certified agents walk you through every cost before you commit — no surprises on transfer day. Speak to an agent to discuss your budget and find the right property in Dubai.