Property Value


What costs are involved when buying a home?

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“Understand the expenses in home buying: beyond the purchase price, consider closing costs, property taxes, insurance, and potential maintenance fees.”

Dubai’s real estate market has an undeniable charm that draws both investors and homeowners from all over the world with its opulent towers and spacious villas. Nonetheless, anybody thinking about purchasing this energetic metropolis must be aware of the whole range of expenses associated with real estate transactions. With the goal of demystifying these costs, this page offers a thorough overview of all the fees, charges, and total costs associated with purchasing a home in Dubai.

What is the Specific Cost of Purchasing Property in Dubai?

These are the different expenses associated with having a home or apartment in Dubai for associates.

Upfront Fees for Buying Property

One of the strongest legal frameworks in place to protect buyers and sellers is found in the Dubai real estate industry. Because of this, buying a home in Dubai entails certain upfront costs that are added to the property’s worth by the customer. These up-front costs for purchasing real estate in Dubai vary depending on the kind of property (off-plan or ready) and the seller (developer vs. buyer). If you want to purchase your house using a home loan, you also take into account the minimum monthly payment for a mortgage in Dubai.

Upfront Fees for buying prepared Property

Purchasing a home in Dubai straight from the developer might sometimes be the most cost-effective option. The following fees are required to be paid to the Dubai Land Department (DLD).


  • The Dubai Land Department charges 4% of the property value.
  • Fees for providing the title: AED 520
  • Admin fees of AED 4,200 are due to DLD.


Mortgage Registration Fee (0.25% of total mortgage value) and AED 290 admin fees are payable to DLD by those who finance their property with a mortgage or home equity loan.

Charges for purchasing Off-Plan Property

When purchasing off-plan real estate in Dubai, there are a few considerations to make similar to prepared houses. A few of the top off-plan homes are the Six Senses Residences in Palm Jumeirah and the Peninsula in Business Bay. Those who choose to buy off-plan in Dubai will usually acquire the real estate straight from the seller or developer. The 4% DLD fees in Dubai based on the property’s value are applicable in every situation.


The Oqood Certificate, a document given by RERA that guarantees the off-plan property is registered in the buyer’s name, may be supplied to the customer for AED 5,250 in addition to the DLD cost.

Service Charges

Property owners in Dubai should take into account service costs in addition to the direct fees after they have determined the worth of their home. The owners are responsible for paying these relevant fees in order to maintain and repair their residential properties or communities. Service costs are based on the area unit when buying a home or villa in Dubai. Consequently, buyers who purchase a larger house will pay more to own a range in Dubai. This helpful guide to Dubai service costs will help you understand how those prices are broken down.

Dubai Electricity and Water Authority Fees

The company in charge of overseeing the water and power connections for every residence in Dubai is called DEWA. The value to line up DEWA will vary depending on your location and the kind of property you possess, ranging from AED 2,300 for living quarters to AED 4,000 for a villa, depending on the number of meters placed. You’ll find that there are a number of factors that influence the worth of looking for a home in Dubai. These costs might be more or less depending on the specifics.

Agency Fees

Having the correct real estate agent may help your transaction go much more smoothly, even if hiring one will increase the cost of purchasing a house by 2% plus VAT (which is due after the sale is completed). By working with a knowledgeable agent, you can be sure that you will get the greatest guidance possible from the developer of the property to the neighborhood you are purchasing in, as well as from the Dubai real estate market.


Additionally, an agent helps you through the whole purchasing process, making sure you are aware of all the charges and have all the information you need. Another expense that the buyer must pay is conveyancing costs. Choosing a licensed conveyancer will guarantee that all financial agreements, contracts, and supporting paperwork are in order legally.

Initial Deposit

The buyer must pay a deposit to secure the acquisition in both primary and secondary market transactions. 10% of the purchase price, given by check to the seller, is usually the first deposit for ready-to-move-in purchases made on the secondary market. The authorized agent, who is a broker registered with the RERA, collects this sum and retains it until the property is properly transferred. Once again, in cases where a mortgage is already recorded against the property, the buyer must pay off the debt in order to file for a No Objection Certificate (NOC), which is required in order to get the property’s title deed.

Insurance Fees

The purchase of home insurance is not required in Dubai; nonetheless, it is strongly advised. Protecting your home and its contents against the possibility of loss or damage caused by theft, accidents, fires, or natural disasters is the purpose of home and contents insurance.


As you can see, the price of a property in Dubai may be affected by a variety of different factors. When you are making plans for your finances, you need to take into consideration the whole cost of purchasing property in Dubai. The magnitude of these costs may vary from person to person, depending on the specifics of the situation. However, you should now have a reasonable sense of all the expenses that are associated with purchasing real estate in Dubai using this information.

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