Cost of Buying Property in Dubai (2026)
Most buyers budget for the property price and forget the 6-7% in additional costs. Here is every fee you will pay when buying property in Dubai.
Quick Summary
Budget an additional 6-7% of the purchase price for transaction costs on secondary market properties. Off-plan purchases are typically 3-4% due to DLD fee waivers offered by developers.
1. Dubai Land Department (DLD) Transfer Fee — 4%
The DLD transfer fee is the largest cost when buying property in Dubai. It is 4% of the purchase price, paid to the Dubai Land Department at the time of transfer. On a AED 1.5M property, this is AED 60,000.
For off-plan properties, many developers offer to pay the DLD fee on behalf of the buyer as a sales incentive. Always confirm this in writing before signing.
DLD Fee Examples
2. DLD Admin Fee — AED 580
A fixed admin fee of AED 580 is charged by the DLD on all property transactions regardless of purchase price.
3. Trustee Registration Fee — AED 2,000 to AED 4,000
Property transfers in Dubai are processed through DLD-approved trustee offices. The fee is AED 2,000 for properties under AED 500,000 and AED 4,000 for properties AED 500,000 and above. VAT at 5% applies to this fee.
4. Agent Commission — 2%
The standard real estate agent commission in Dubai is 2% of the purchase price, paid by the buyer. This is negotiable in some cases, particularly for high-value transactions.
For off-plan properties bought directly from the developer, agent commission is typically paid by the developer — not the buyer.
5. Mortgage Registration Fee — 0.25%
If you are buying with a mortgage, the DLD charges a mortgage registration fee of 0.25% of the loan amount, capped at AED 10,000, plus a AED 290 admin fee. This does not apply to cash buyers or off-plan purchases.
6. Mortgage Arrangement Fee — 0.5% to 1%
Banks in Dubai charge a mortgage arrangement or processing fee of 0.5% to 1% of the loan amount. Some banks waive this fee for certain products or during promotional periods.
7. Property Valuation Fee — AED 2,500 to AED 3,500
If buying with a mortgage, the bank requires an independent property valuation. This costs between AED 2,500 and AED 3,500 depending on the bank and valuer.
8. Home Insurance
Buildings insurance is mandatory for mortgaged properties in Dubai. Contents insurance is optional but recommended. Expect to pay AED 1,500 to AED 3,000 per year depending on property value.
Total Cost Summary
| Cost | Amount | Who Pays |
|---|---|---|
| DLD Transfer Fee | 4% of price | Buyer |
| DLD Admin Fee | AED 580 | Buyer |
| Trustee Fee | AED 2,000-4,000 | Buyer |
| Agent Commission | 2% of price | Buyer |
| Mortgage Registration | 0.25% of loan | Buyer (if mortgage) |
| Mortgage Arrangement | 0.5-1% of loan | Buyer (if mortgage) |
| Property Valuation | AED 2,500-3,500 | Buyer (if mortgage) |
Calculate Your Exact Costs
Use our free calculators to get an exact figure for your specific purchase: