Beyond the advertised price, a Dubai purchase costs around 6 to 7% in fees on the secondary market: 4% DLD transfer, fixed charges and agency fees. Here's the breakdown, line by line.
On this page
- Property purchase costs in Dubai: how much to add to the advertised price?
- Worked example: the full budget of a secondary-market purchase from A to Z
- Buying off-plan: entry costs that differ from the secondary market
- What costs does a mortgage add to the bill?
- Why these costs exist: the regulatory framework that sets them
- Which costs do buyers forget to budget for?
Property purchase costs in Dubai come to around 6% of the price for a secondary-market home: a 4% transfer fee to the Dubai Land Department, fixed administrative charges of ~AED 4,700 to 5,500, and 2% agency fees plus 5% VAT on the buyer's side. These amounts sit on top of the negotiated price and are settled on transfer day.
The advertised price is never the true cost of entry. Between the title transfer, the fixed counter charges and the agent's commission, the gap runs into tens of thousands of dirhams. We map out the real total budget before any commitment, so that no line item surfaces at signing.
Property purchase costs in Dubai: how much to add to the advertised price?
Beyond the negotiated price, three main line items need budgeting for a secondary-market purchase in Dubai: the Dubai Land Department transfer fee of 4% of the purchase price, fixed administrative charges of ~AED 4,700 to 5,500, and the 2% agency fee plus 5% VAT, borne by the buyer.
The fixed DLD charges break down line by line, based on Property Finder data:
- Title deed: ~AED 580 (only AED 40 for off-plan);
- Plan fees: ~AED 250;
- Trustee office (the trust centre that executes the transfer): ~AED 4,000 to 4,200.
One point that is often misunderstood: residential VAT is 0% on the sale itself, according to the Federal Tax Authority. The property price therefore carries no VAT. Only the agency fees attract 5% VAT — that's 5% of the commission, not 5% of the property.
Worked example: the full budget of a secondary-market purchase from A to Z
At the market median price of AED 1,883/sq ft according to Bayut data (August 2026), a home of roughly 800 sq ft comes to nearly AED 1.5M — to which the acquisition costs detailed below are added.
| Line item | Basis | Amount |
|---|---|---|
| Property price | 800 sq ft × AED 1,883/sq ft | ~AED 1,506,000 |
| DLD transfer (4%) | 4% of the price | ~AED 60,240 |
| Fixed DLD charges | title deed + plan + trustee | ~AED 4,700 to 5,500 |
| Agency fees | 2% + 5% VAT | ~AED 31,630 |
The 4% transfer fee, according to the DLD, is the heaviest item. Adding the fixed charges (~AED 4,700 to 5,500) and the agency commission of 2% + 5% VAT, the outlay beyond the price reaches around AED 96,000 to 97,000 — nearly 6.5% of the price paid on top.
Once the property is yours, the first recurring cost kicks in: the annual service charges, between ~AED 3 and 30/sq ft/year and regulated by RERA via Mollak. Not to be confused with acquisition costs: these come around every year.
Buying off-plan: entry costs that differ from the secondary market
With off-plan bought directly from the developer, there is usually no agency commission on the buyer's side, unlike the 2% + VAT of the secondary market. That's an immediate saving on the entry budget.
Featured
View projects: Keturah Reserve
From AED 3,871,000
Hand-picked new properties with end-to-end expert support.
View projects
What changes on the cash-flow side is the timeline. At reservation, the off-plan deposit represents 5 to 20% of the price (often 10 to 20%), sometimes preceded by a fixed booking fee of around AED 20,000 to 100,000 before signing the SPA. These funds are secured in a regulated escrow account, under Law No. 8 of 2007 overseen by RERA and the DLD.
The fixed DLD charges are also lower: the provisional title deed (Oqood) costs AED 40 instead of ~AED 580, with the final title deed only arriving on handover. Among the 229 projects we list, entry tickets start at AED 500,000, with a median of AED 1.2M. A project like The Archive, from AED 700,000 in Dubailand Residence Complex, illustrates this entry point. The full process is described in our guide on buying off-plan step by step.
What costs does a mortgage add to the bill?
A mortgage purchase adds acquisition costs that a cash purchase doesn't have — bank arrangement fees, valuation, mortgage registration — separate from the 4% DLD transfer paid in every case.
A project in mind?
Talk to a Lucretia adviser
Tailored guidance, no obligation.
The amount to finance depends on the LTV. A non-resident typically secures 50 to 75% of the price, according to the CBUAE Rulebook, meaning a down payment of 25 to 50%. That high down payment weighs directly on the initial outlay, before even counting the fees.
The detail of the bank fees — arrangement, valuation, mortgage registration with the DLD — is covered in our guide on financing a Dubai purchase for non-residents. Keep the structure in mind: these fees stack on top of the 4% DLD and the agency fees already counted, for a total budget higher than that of a cash purchase.
Why these costs exist: the regulatory framework that sets them
These costs stem from the role of the DLD and RERA in securing every transaction: full ownership (freehold) has been open to foreigners in Dubai's designated areas since 2002, and every title transfer must go through the Dubai Land Department — hence the 4% transfer fee.
In return, the tax framework keeps recurring costs remarkably low. Individuals pay no tax on rental income and no capital gains tax, according to the official UAE government portal, and VAT on residential property is 0%.
The 9% corporate tax above AED 375,000 in profits, in force since June 2023, does not apply to holding a property in your own name — only to corporate structures, a subject we cover in the guide on holding via a company. Finally, for anyone eyeing residency, the real estate Golden Visa threshold of AED 2M is a figure to factor into the overall budget from the outset of the search.
Which costs do buyers forget to budget for?
The first classic oversight is the fixed DLD charges of ~AED 4,700 to 5,500, overshadowed by the far better-known 4% transfer. On a transaction, they easily slip under the radar when the budget is being drawn up.
Second blind spot: service charges, which vary widely by property type. Count on around AED 10 to 20/sq ft/year for an apartment, 20 to 50+ for a luxury tower, and only ~2 to 6 for a villa. That spread changes the annual holding budget entirely.
Among my clients, the mistake I see most often is thinking in terms of the purchase price alone and discovering the fixed charges and service costs at the point of signing. We then rebuild the budget under pressure — I always prefer to lay out every line item before the offer.
— Anastasiya OULD, Director of Relations & Corporate Affairs
There's also the inheritance trap: by default, Sharia law can apply to succession. A will registered with the DIFC Courts secures the transfer for non-Muslims — worth anticipating from the point of purchase. Always distinguish acquisition costs (one-off) from recurring charges (each year): the former is a cost of entry, the latter a cost of holding, detailed in our guides on net yield and property taxation.
This article is part of our guide
Dubai Property Investment Guide for Foreign Buyers
About the author
Anastasiya OULD
Director of Relations & Corporate Affairs
A specialist in the secondary market in Dubai, Anastasiya supports her clients in their search for exceptional properties. Thanks to her expertise and attention to detail, she identifies unique opportunities in sought-after neighborhoods such as Downtown Dubai, Business Bay and Palm Jumeirah. Passionate about art and interior design, she offers a tailor-made experience, ensuring each investor a property perfectly suited to their expectations in terms of prestige, location and profitability.
