Upfront Costs When Buying Property in Dubai
When purchasing property in Dubai, there are several upfront costs you need to consider beyond the property price. Understanding these costs will help you budget effectively and avoid surprises during the buying process.
Down Payment
UAE Residents20% of property value
Non-Residents25% of property value
Paid at the time of signing the sale agreement. May vary based on property value and type.
DLD Registration Fee
Registration Fee4% of property value
Paid to Dubai Land Department when transferring property ownership. Based on purchase price or market value, whichever is higher.
Agency Fees
1-2% of property value
Negotiable fee paid to real estate agent
Title Deed Fee
AED 580-1,000
Official property ownership document fee
Valuation Fee
AED 500-2,000
Required for mortgage applications
Additional Costs
Mortgage Related
- Mortgage Registration0.25% of loan
- Processing FeeUp to 1% of loan
Service Charges
- Maintenance FeeVaries by property
- Utility TransferAED 100-200 each
Total Cost Example
For a property worth AED 2,000,000:
- • Down Payment (20%): AED 400,000
- • DLD Fee (4%): AED 80,000
- • Agency Fee (2%): AED 40,000
- • Other Fees: ~AED 5,000
- • Total Upfront: ~AED 525,000
Pro Tips
- ✓ Budget extra for unexpected costs
- ✓ Negotiate agency fees when possible
- ✓ Compare mortgage offers from multiple banks
- ✓ Keep all payment receipts
- ✓ Consider future service charges
Common Mistakes
- ✗ Forgetting about registration fees
- ✗ Not budgeting for service charges
- ✗ Overlooking utility transfer costs
- ✗ Ignoring insurance costs
- ✗ Not having buffer for extras
