More Than the Price You Pay: What to Expect
When buying property in Dubai, most investors and buyers will be interested in the list price, but buying a home is not a single-cost affair. It is important to understand the hidden fees and costs so that one can accurately plan and hence avoid surprises at deal time.
Transfer Fees and Registration Costs
All Dubai property sales attract a 4% transfer charge to the Dubai Land Department (DLD). There is also a DLD administration fee, usually between AED 500 and AED 5,000 depending on property value. They have to be prepaid before title deed release.
If you’re buying with a mortgage, expect a mortgage registration fee of 0.25% of the loan amount plus a small admin fee. Also, most banks charge a loan processing fee, which ranges between 0.5% to 1% of the loan value.
Valuation and Broker Fees
The bank will then value the property at a cost between AED 2,500 to AED 3,500 to determine lending limits. If you are employing the services of a real estate broker, expect to pay a brokerage fee, usually 2% of the acquisition price.
The other initial costs are the developer’s NOC fees (AED 500 to AED 5,000) and service charge adjustments if you are buying an existing unit.
Service Charges and Maintenance
Annual maintenance fees cover the expenses of maintaining shared facilities such as security, cleaning, landscaping, and amenities. These would be between AED 10 and AED 30 per square foot and must be factored into your long-term investment strategy, especially if you are buying in those communities with pools, gyms, and other fancy amenities.
Home Insurance and Utility Deposits
Optional, but most customers do buy home insurance costing between AED 500 and AED 2,000 annually. DEWA utility connection deposits are increasing too—generally AED 2,000 for a flat and AED 4,000 for a villa.
Know Before You Invest
Purchasing property in Dubai is an incredibly rewarding experience, but there’s more to the headline price. Transfer fees, service charges, and a complete understanding of all fees involved are part of full awareness that leads to smart, well-informed investment decisions that protect your capital and increase your returns in the long term.