Home to the tallest structure in the world, a man-made archipelago ‘Palm Jumeirah’, and numerous other attractions, Dubai is a second home to a lot of expatriates. The emirate offers abundant professional, investment and employment opportunities for those who’re seeking.

The real estate sector in Dubai, particularly, has grown at a rapid pace, with the latest residential buildings laced with state of the art amenities launched by world-renowned development firms. These developments and the return they are projected to offer are attracting foreign investors, both seasoned and newbies.

While the seasoned investors know about the fact that there is a significant difference between the market price of a property and the ACTUAL COST they incur, newbies often tend to make a mistake in this regard. They only take into account the market price and end up being in a financial crunch when the time to purchase the property comes.

So, in order to avoid landing in such unfavourable circumstances, it is important that you know about the ACTUAL COST of buying a property for sale in Dubai. And for this, we have got you covered. Here’s an insight into Dubai property buying costs:

The Value of the Property

First things first, the major chunk of the actual cost is allocated to the market value of the property. This is the agreed-upon price between the seller/developer and the buyers/investor. Numerous factors help in determining the market value of the property. These include the location, size, type (apartment, villa, townhouse etc.), nearby facilities and developments etc.

You can either finance the property or pay in cash. If you are opting for the former method, the amount of interest accrued will also be added to the total cost of the property.

Upfront Fees

One of the major reasons behind the success of the Dubai property market is that it safeguards the interests of both the buyers and sellers. They have to abide by several regulations that limit the chances of fraudulent activities on both sides and create a sense of safety and security in the market.

One of such regulations is that the buyer has to pay an upfront fee when buying a property here. This amount is not included in the asking price for a property. Therefore, you need to take it into account when setting a budget for property buying.

It is to be noted that the upfront fee is different for off-plan and ready properties. Furthermore, it also varies depending on the fact that the buyer has purchased it from the seller or the developer directly.

Upfront Fees for Ready Properties

In case you are planning to purchase the property from the developer directly, you will need to pay the following fees to the Dubai Land Department (DLD):

  • DLD Fees: 4% of the value of the property
  • Title Deed Issuance Fees: AED 520
  • Admin Fees: AED 4,200

If you are taking the financing route, you will also have to bear some additional expenses. These include the mortgage registration fee and admin fees. The former is calculated at 0.25% of the total value of the amount mortgaged, while the latter is AED 290. In case you are paying in cash, you will be exempt from paying the mortgage registration fee.

Upfront Fees for Off-Plan Properties


Whether you are buying an off-plan property from a developer or seller, you will be charged 4% DLD fees. It is calculated on the total value of the property.

Oqood Certificate

An important part of buying off-plan property is obtaining an Oqood Certificate. This certificate is issued by RERA. It ensures that the property is registered with the name of the buyer. The buyer is required to pay AED 5,250 to get this certificate. Bear in mind that this Oqood Certificate must be obtained only after paying 25% of the property price.

Service Charges

Service charges, also known as maintenance fees, are to be borne by the homeowners in Dubai. It is a recurring amount paid for the upkeep and maintenance of residential communities or buildings. These charges are calculated on a square foot basis. So, the bigger the property, the higher the service charges.

DEWA Charges

In today’s time and age, it’s hard to imagine life without electricity and water. Right? This is why the first thing you need to do, as soon as you buy a property in Dubai, is contact DEWA (Dubai Electricity and Water Authority) for arranging these necessities. And for this, you will have to pay DEWA charges. These charges depend on the type of property and the number of metres installed.

Agent’s Fee

This is another additional expense many tend to neglect. Needless to say, if you’re hiring a property agent, you will have to pay for their services. It is usually 2% of the property price; however, the amount is negotiable. However, if you are buying from the developer directly, you wouldn’t have to pay this fee. Having said that, it is better to rely on a real estate company to find a property that matches your requirements in a hassle-free, quick way.

A Final Word

It is important that you take all these expenses into account when selecting a property for sale in Dubai. This will give you a clear idea of how much you will actually have to pay to own the property. For further assistance, feel free to get in touch with us. 

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