Buying property in Dubai is a smart investment move for many but understanding the cost of buying a property in Dubai is key to avoiding financial surprises. Beyond the listed property price, there are several upfront and ongoing costs that can affect your total investment. This guide breaks down everything you need to know so you can budget wisely and avoid surprises along the way.
Whether you’re a first-time buyer, relocating for work, or an investor eyeing Dubai’s growing property market, knowing the true cost of buying a property in Dubai will help you make better decisions.
Upfront Costs When Buying Dubai Property
Let’s start with the initial expenses you’ll need to pay when buying property in Dubai. These are non-negotiables that come into play once you find the right unit.
1. Dubai Land Department (DLD) Fees
The DLD charges 4% of the property value as a transfer fee. This is typically paid upfront and is one of the largest government-related costs in the buying process.
Additional DLD charges include:
- AED 580 for Title Deed issuance
- AED 4,200 (approx.) for admin and registration costs if you’re using a mortgage
This fee is mandatory and paid directly to the government.
2. Agency Commission
Real estate agents in Dubai usually charge 2% of the purchase price as commission. While some developers may offer commission-free deals for off-plan units, resale properties almost always involve agency fees.
To explore commission-free options, visit our off-plan properties section.
3. Property Registration Fee
This is part of the DLD transaction but is listed separately in many sale agreements. For properties over AED 500,000, the registration fee is AED 4,000. For anything under AED 500,000, it drops to AED 2,000.
4. NOC Charges
If you’re buying a property from a developer or secondary market, you’ll likely need a No Objection Certificate (NOC). This is issued by the developer to confirm that there are no outstanding payments. The NOC fee ranges from AED 500 to AED 5,000, depending on the developer.
If You’re Taking a Mortgage
Financing your property with a mortgage? Here are the extra costs to factor in.
5. Bank Fees
Most lenders charge a mortgage arrangement fee of 1% of the loan amount. This is paid upfront.
6. Valuation Fees
Before approving your mortgage, banks will assess the property’s value through a third-party valuation. Expect to pay between AED 2,500 and AED 3,500, depending on the property type and lender.
Learn more about financing options with our mortgage services.
Long-Term and Recurring Costs When Buying Property in Dubai
After the keys are in your hand, there are ongoing expenses tied to property ownership that should be part of your long-term budget.
7. Service Charges and Maintenance Fees
These are annual charges levied by the developer or owner’s association for building upkeep and shared facilities. Costs vary widely depending on location and amenities.
Average charges:
- Apartments: AED 10–30 per sq. ft. per year
- Villas: Slightly lower depending on community
8. Property Management (Optional but Helpful)
If you’re an overseas buyer or prefer hassle-free ownership, a professional property management company can handle everything from tenant sourcing to maintenance.
Our property management services are designed to protect your investment and give you peace of mind.
9. Annual Property Insurance
While not mandatory, property insurance is strongly recommended. It usually costs AED 500 to AED 2,000 per year, depending on the property size and coverage.
Example Cost Breakdown: AED 1,500,000 Apartment
To give you an idea, here’s what you might expect when buying a mid-range apartment in Dubai Marina:
| Cost Type | Amount |
| Property Price | AED 1,500,000 |
| DLD Fee (4%) | AED 60,000 |
| Agent Commission (2%) | AED 30,000 |
| Registration Fee | AED 4,000 |
| NOC Fee | AED 2,500 |
| Mortgage Arrangement (1%) | AED 15,000 |
| Valuation Fee | AED 3,000 |
| Total Upfront | AED 114,500 |
| Annual Service Charges | AED 20,000–30,000 |
| Insurance (optional) | AED 1,000 |
Final Thoughts: What’s the Total Cost to Buy a House in Dubai
The cost to buy a house in Dubai goes well beyond just the listing price. From DLD fees to ongoing service charges, these additional costs can make a big difference in your budget planning.
At Livin’ Experts, we believe in transparency and helping buyers like you make informed choices. Whether you’re purchasing a rental investment, a holiday home, or a primary residence, our team is here to guide you through every stage, from choosing the right unit to managing your property long after purchase.
Explore our buyers guide for more insights. Ready to take the next step? Browse available properties or connect with our experts to understand the real cost of owning in Dubai.
