Here’s something almost every first-time buyer in Dubai gets caught out by: the price on the listing is not the price you pay.
On top of the property itself, there’s a stack of transaction fees, government charges, agency commission, registration costs, and if you’re borrowing, mortgage fees. None of it is hidden or unusual, but if you don’t budget for it in advance, it lands as an unwelcome surprise at the worst possible moment.
So let’s lay it all out plainly. Here’s what you actually pay, and who pays it.
The big one: the DLD transfer fee
The Dubai Land Department charges a 4% transfer fee on the property price. This is the single largest cost after the property itself, and by Dubai convention the buyer pays it.
On a AED 2 million property, that’s AED 80,000. It’s non-negotiable with the government, though which party covers it can occasionally be negotiated between buyer and seller. In practice, the buyer almost always pays.
Agency commission
The standard agency commission in Dubai is 2% of the purchase price, plus 5% VAT. On that same AED 2 million property, that’s AED 40,000 plus VAT.
This pays for the agent who finds you the property, negotiates on your behalf, manages the transaction and gets you safely to a title deed. A good agent earns it several times over by getting you the right property at the right price and stopping expensive mistakes.
The fixed costs
A handful of smaller, fixed charges apply to most transactions:
Trustee office fee — around AED 4,200 including VAT for properties over AED 500,000. This is the DLD-approved office where the transfer is registered.
DLD admin fee — roughly AED 580 for a ready property.
Title deed issuance — around AED 250.
They’re modest individually, but they add up, so factor them in.
Every fee on a AED 2,000,000 cash purchase, laid out plainly.
The NOC fee
Before a resale can transfer, the developer issues a No Objection Certificate, confirming the seller has no outstanding service charges. This fee is paid to the developer and varies, typically anywhere from AED 500 to AED 5,000 depending on the developer. By convention the seller usually covers it, but it’s worth confirming in the contract.
If you’re buying with a mortgage
Financing adds a few more costs on top:
Mortgage registration — 0.25% of the loan amount, plus AED 290, paid to the DLD.
Bank arrangement fee — typically 0.5% to 1% of the loan, charged by your lender.
Valuation fee — usually a few thousand dirhams, for the bank’s property valuation.
Replace with a title deed or transfer-signing moment at the trustee office.
So what’s the total?
As a rule of thumb, budget around 7 to 8% on top of the price for a cash purchase, and 8 to 10% if you’re taking a mortgage.
Budget the extra costs upfront: cash purchase vs. financing with a mortgage.
On a AED 2 million cash purchase, that’s roughly AED 140,000 to AED 160,000 in costs over and above the property. It’s a significant number, and the buyers who plan for it sail through the process. The ones who don’t get a nasty shock at the trustee office.
The honest takeaway
None of these fees are unusual or unfair, they’re simply how buying property works in Dubai, and they’re the same for everyone. The mistake isn’t paying them. The mistake is not knowing about them until it’s too late to budget properly.
A good agent walks you through every one of these numbers before you make an offer, so there are no surprises and you know exactly where you stand. That’s the difference between a smooth purchase and a stressful one.
If you’re thinking about buying and you’d like a clear, honest breakdown of the true cost for your specific budget, get in touch with me or one of my team at Liv Squared Properties. We’ll run the real numbers with you, so you go in with your eyes open.
Contact Liv Squared Properties for the real numbers on your budget.
