Costs of buying property in Dubai: fees and deposits

The price of a property in Dubai is only part of what a buyer pays. On a ready purchase, government fees, the agency fee and trustee charges add around 6.5% to the price for a cash buyer, and mortgage fees take it to around 7.5% or more for a buyer using finance. A buyer with a mortgage on an AED 2,000,000 apartment needs roughly AED 550,000 in cash before the transfer, of which only AED 400,000 is the deposit.

This guide lists every upfront cost of buying property in Dubai, for cash and mortgage buyers, for ready and off-plan property, with worked examples you can adapt to any price.

The deposit

Cash buyers pay the full price at transfer, so the deposit question doesn't arise. The money must be in place, usually as a manager's cheque, on the transfer date.

Mortgage buyers need a minimum deposit set by UAE Central Bank rules on loan-to-value ratios:

Expatriates buying a first home worth up to AED 5 million: minimum deposit 20%, so the bank lends up to 80%.
Expatriates buying a first home worth more than AED 5 million: minimum deposit 30%.
UAE nationals buying a first home worth up to AED 5 million: minimum deposit 15%.
UAE nationals buying a first home worth more than AED 5 million: minimum deposit 25%.
Second and subsequent homes: minimum deposit 40% for expatriates and 35% for UAE nationals.
Off-plan property: the bank can lend no more than 50% of the value, so the minimum deposit is 50%.

Non-resident buyers can also borrow from several UAE banks, usually with a deposit of 40% to 50%.

The deposit is paid in stages. The buyer usually provides a security deposit of 10% of the price when the memorandum of understanding (Form F) is signed, held by the listing brokerage until transfer, and pays the balance of their contribution at transfer.

The DLD transfer fee

The largest fee on any purchase is the Dubai Land Department transfer fee of 4% of the purchase price. It's paid at transfer, along with a title deed administration fee of AED 580 for an apartment or villa.

By market convention in Dubai, the buyer pays the 4% fee. On an AED 2,000,000 property, that's AED 80,000. The fee applies to ready and off-plan purchases alike, although some developers pay part or all of it on new launches as a sales incentive.

The agency fee

When the purchase is arranged through a real estate agent, the buyer pays an agency fee of 2% of the purchase price plus 5% VAT. On an AED 2,000,000 property, that's AED 40,000 plus AED 2,000 VAT. The fee is paid to the brokerage at transfer.

On a primary off-plan purchase from a developer, the buyer pays no agency fee. The developer pays the agency instead.

Trustee office fee

Transfers in Dubai are completed at a Real Estate Registration Trustee office, a DLD-approved centre that handles the paperwork and payments on the day. The trustee fee is:

AED 4,000 plus VAT for properties priced at AED 500,000 or more.
AED 2,000 plus VAT for properties priced below AED 500,000.

The buyer normally pays it.

Mortgage costs

A buyer using a mortgage pays several additional fees, most of them before or at transfer:

Mortgage registration fee: 0.25% of the loan amount plus a fee of AED 290, paid to the Dubai Land Department to register the bank's interest in the property.
Bank arrangement fee: up to 1% of the loan amount plus VAT. UAE Central Bank rules cap this fee, and many banks charge less or waive it on promotional products.
Valuation fee: usually AED 2,500 to AED 3,500 plus VAT, paid to the bank's valuer before final approval.
Life insurance: required by the bank and usually charged monthly with the mortgage payments.
Property insurance: required by many lenders, at a modest annual premium.

Some buyers also use a mortgage broker. Many brokers are paid by the bank and charge the buyer nothing. Others charge a fee, which should be agreed in writing at the start.

Developer NOC fee and service charges

Before transfer, the seller must obtain a no-objection certificate (NOC) from the developer confirming there are no outstanding service charges on the property. NOC fees range from around AED 500 to AED 5,000 plus VAT depending on the developer. The seller pays it in almost every transaction.

Service charges are paid annually to the building or community's owners' association, at a rate per square foot set for each project. The seller must clear any arrears before the NOC is issued. Where the seller has paid service charges in advance for a period after transfer, the buyer commonly reimburses the seller for that portion, so a buyer should ask for the service charge position before agreeing the final figures.

Moving-in costs

Once the property transfers, the new owner pays the same utility costs a tenant would:

DEWA deposit: AED 2,000 for an apartment or AED 4,000 for a villa, plus a connection fee.
District cooling: activation and deposit fees where the building uses a provider such as Empower.
Move-in permit, removals and any furnishing.

Worked example: a mortgage purchase

An expatriate buys a ready apartment for AED 2,000,000 as their first home, with an 80% mortgage of AED 1,600,000:

Deposit (20%): AED 400,000
DLD transfer fee (4%): AED 80,000
Title deed fee: AED 580
Agency fee (2%): AED 40,000
VAT on the agency fee: AED 2,000
Trustee office fee: AED 4,000 plus AED 200 VAT
Mortgage registration (0.25% of the loan): AED 4,000 plus AED 290
Bank arrangement fee (1% of the loan): AED 16,000 plus AED 800 VAT
Valuation fee: AED 3,000 plus AED 150 VAT

Total cash needed: around AED 551,000. The costs beyond the deposit come to about AED 151,000, or 7.6% of the price. With a bank that waives the arrangement fee, the total falls to around AED 534,000.

Worked example: a cash purchase

The same apartment bought for cash:

Purchase price: AED 2,000,000
DLD transfer fee (4%): AED 80,000
Title deed fee: AED 580
Agency fee (2%) with VAT: AED 42,000
Trustee office fee with VAT: AED 4,200

Total: around AED 2,126,800. The costs on top of the price come to about 6.3%.

Buying off-plan

Off-plan purchases have a different cost structure, spread over the construction period:

Down payment: set by the developer's payment plan, commonly 10% to 20% of the price at booking.
DLD fee: 4% of the price, paid when the sale is registered in Oqood, the DLD's off-plan register, usually soon after booking. Some developers cover part or all of it.
Oqood registration and admin fees: smaller fees charged by the developer or the trustee for registering the sale, typically a few thousand dirhams.
No agency fee on a primary purchase.
Instalments during construction and, on post-handover plans, after the keys are released.

On an AED 1,500,000 off-plan apartment with a 20% down payment, the buyer typically pays around AED 300,000 at booking and AED 60,000 in DLD fees within the first weeks, so around AED 365,000 including admin fees, with the balance spread over the payment plan.

Buyers planning to finance an off-plan purchase should note that banks generally lend only on completed property or at the final stages of construction, and cap the loan at 50% of the value until completion.

How much to budget

As a rule of thumb for a ready purchase in Dubai:

Cash buyers: budget the price plus 6.5% for fees.
Mortgage buyers: budget the deposit plus 7.5% to 8% of the price for fees.
Off-plan buyers: budget the down payment plus 4% for the DLD fee and a few thousand dirhams for registration.

Add the moving-in costs on top, and keep a reserve for the first year's service charges.

Owning property and residence visas

Buying property can also qualify the owner for a UAE residence visa. A property, or properties, worth AED 2 million or more qualifies the owner for the 10-year Golden Visa, including properties bought with a mortgage from an approved bank. Visa application and medical fees are separate from the purchase costs above, and buyers aiming for the Golden Visa should make sure the price on the title deed meets the threshold.

Frequently asked questions

What are the total fees for buying property in Dubai?

On a ready purchase, about 6.5% of the price for a cash buyer, made up mainly of the 4% DLD fee and the 2% agency fee plus VAT. Mortgage buyers pay around 1% to 1.5% more in bank and registration fees.

Who pays the DLD transfer fee in Dubai?

The buyer, by market convention. The fee is 4% of the purchase price plus a title deed fee of AED 580.

How much deposit do I need for a mortgage in Dubai?

At least 20% for an expatriate buying a first home worth up to AED 5 million, and 30% above that. Non-residents usually need 40% to 50%.

Is there an agency fee on off-plan property?

No. On a primary off-plan purchase, the developer pays the agency's commission.

Are there annual property taxes in Dubai?

There's no annual property tax on owned homes in Dubai. Owners pay annual service charges to the building or community, and tenants pay the Dubai Municipality housing fee through their DEWA bills.

Working with an agent on a purchase

A buyer's agent who knows the full cost picture can steer a client toward the right price range from the first conversation, rather than discovering at the MOU stage that the fees don't fit. Many of the best purchases in Dubai also involve two agents, one holding the property and one holding the buyer, sharing the 2% fee under a written agreement. Our guide to how commission splits work on a co-broke in Dubai explains how that works. On BrokerCircle, buyer requirements record the budget and funding method up front, so agents only see properties their clients can actually complete on.