PROPERTY GUIDE

DUBAI PROPERTY TRANSACTION COSTS: COMPLETE FEE BREAKDOWN 2026

March 10, 2026 · 8 min read

The purchase price is never the full picture. In Dubai, transaction costs add approximately 7–9% for cash buyers and 10–13% for mortgage buyers on top of the property price.

This guide breaks down every cost — mandatory fees, optional expenses, and the charges most buyers only discover at the transfer desk.

1. DUBAI LAND DEPARTMENT (DLD) FEES

The DLD transfer fee is the single largest transaction cost and is non-negotiable.

Example: On a AED 2,000,000 apartment, the DLD transfer fee alone is AED 80,000 + AED 580 + AED 250 + AED 58 = AED 80,888.

Note: The 4% fee is typically split 50/50 between buyer and seller in the secondary market — but this is negotiable. In off-plan purchases, the buyer usually pays the full 4%.

2. REAL ESTATE AGENT COMMISSION

Example: On a AED 2,000,000 property: 2% = AED 40,000 + AED 2,000 (VAT) = AED 42,000.

Commission is typically paid by the buyer in the secondary market. For off-plan purchases directly from the developer, the developer usually pays agent commission — but always confirm in writing.

3. MORTGAGE-RELATED COSTS

If you're financing, these additional costs apply:

Example: On a AED 1,500,000 mortgage: registration AED 4,040 + arrangement AED 15,000 + valuation AED 3,000 = AED 22,040 in additional costs.

4. NOC AND DEVELOPER FEES

Before a property can be transferred, the developer must issue a No Objection Certificate (NOC) confirming all service charges are paid.

Some developers charge the seller, others charge the buyer. Clarify this in the MOU (Memorandum of Understanding) before signing.

5. SERVICE CHARGES AND DEWA

These aren't transaction costs per se, but you'll need to budget for them from day one:

Pro tip: Always check the RERA Service Charge Index before purchasing. Some buildings in Downtown Dubai charge AED 25+/sq ft — on a 1,200 sq ft apartment, that's AED 30,000+ per year.

6. COMPLETE COST EXAMPLE

Let's put it all together for a AED 2,000,000 apartment purchased with a mortgage:

That's 7.4% of the purchase price in additional costs. For a cash buyer (remove mortgage costs), it drops to approximately 6.2%.

7. HIDDEN COSTS MOST BUYERS MISS

• Oqood Fee (off-plan): 4% DLD fee is charged at registration of the Oqood (initial contract), not at handover. Budget for this early.
• Early Mortgage Settlement: If selling within the mortgage period — 1% of outstanding balance or AED 10,000 (whichever is less) for variable rate; 3% for fixed rate.
• Property Insurance: Required by most mortgage lenders — AED 1,000–3,000 annually depending on property value.
• Trustee Office Fee: AED 4,000 + VAT for transactions through DLD-registered trustees.
• MOU Typing Fee: AED 500–1,000 if using a typing centre for the Memorandum of Understanding.
• Power of Attorney: AED 500–2,000 if you're not present for the transfer and need a POA drafted and notarised.

8. OFF-PLAN VS READY: HOW COSTS DIFFER

9. HOW TO REDUCE YOUR TRANSACTION COSTS

1. Negotiate the DLD split. In a buyer's market or for high-value properties, sellers may agree to cover the full 4% or split it differently.
2. Shop mortgage arrangement fees. Banks compete aggressively — some waive the 1% fee or offer 0.5% for high-value loans.
3. Buy during developer promotions. Some developers cover DLD fees or registration costs during launch events or Ramadan campaigns.
4. Use a broker who rebates. Some brokerages offer partial commission rebates on high-value purchases.
5. Compare conveyancing services. Trustee fees vary — DLD-registered trustees charge differently for the same service.