The real costs of buying property in Dubai: line by line

An apartment listed at AED 2 million never actually costs you AED 2 million. Between government fees, agent commission, banking fees and community charges, a non-resident buyer should plan for 6 to 9% on top of the listed price for a new-build, and up to 11% on the secondary market with a mortgage. Here is the complete breakdown — nothing skipped, with real 2026 figures.

1. Government fees: DLD, Trustee, Oqood

DLD Transfer Fee — 4% of purchase price

The Dubai Land Department levies 4% of the purchase price at ownership transfer. This is legally split equally between buyer and seller (2% each) but in practice buyers almost always absorb the full 4%. On off-plan purchases, the fee is due at SPA signature with the developer. On the secondary market, it is paid at the Trustee Office on transfer day.

Trustee Fee — AED 4,000 (≈ €1,000)

The Trustee Office is the trusted third party executing ownership transfer (a streamlined local equivalent of a notary). Its fee is fixed: AED 4,000 for properties above AED 500,000, AED 2,000 below. Note: due on secondary purchases but not on direct-from-developer off-plan, where the Oqood registration happens inside DLD itself.

Oqood Registration — AED 4,000 (off-plan only)

On off-plan, DLD issues an Oqood certificate — registration of the right to purchase the future asset. Flat AED 4,000 fee, paid by the developer at registration and passed to the buyer. Some signature developers (Emaar, Nakheel) absorb it as a promotional gesture — always worth negotiating.

2. Agent commission: 2% + 5% VAT

On the secondary market (ready resale), the standard is 2% of the purchase price, plus 5% VAT on the commission (2.1% effective). On direct-from-developer off-plan, the buyer theoretically pays no commission — the developer remunerates the agent internally (up to 5%). Always check nothing is re-priced into the listed amount or a "marketing fee" clause in the SPA.

3. Banking fees (if financed)

A Dubai mortgage triggers four fee items with the local bank:

• Bank arrangement fee: 0.5 to 1% of the loan amount (Mashreq, Emirates NBD, HSBC UAE, ADCB — capped at 1%).
• Property valuation fee: AED 2,500 to 3,500, paid to the bank-appointed surveyor.
• Mortgage registration fee at DLD: 0.25% of the loan amount + AED 290 admin fee.
• Life & property insurance: bank-mandated, ≈ 0.4 to 0.8% of outstanding loan / year for life cover, ≈ 0.05% / year for property cover.

For a non-resident, the bank typically requires 20 to 25% cash down + fees (80/75% LTV max). 3-year fixed rates run around 4.25 to 5.10% in 2026 depending on lender and profile, with a 1% early-repayment penalty on principal.

4. Secondary market only: NOC & mortgage discharge

NOC fee — AED 500 to 5,000

The NOC (No Objection Certificate) is the document by which the developer confirms the seller is current on service charges and authorises the sale. The developer sets the price unilaterally: Emaar typically charges AED 500, Damac AED 1,500, Nakheel AED 2,000, Sobha up to AED 5,000. Usually paid by the seller but negotiable.

Mortgage discharge — AED 1,290 (if lien on the property)

If the seller has a mortgage on the property, their bank must issue a discharge before transfer. Flat DLD fee: AED 1,290, borne by the seller, but often fronted by the buyer and deducted from the negotiated price.

5. Recurring post-handover fees

Service charges — AED 12 to 45 / sqft / year

Community service charges fund common-area maintenance, security, cleaning, pools and concierge. They vary widely by tower:

• Business Bay, Jumeirah Village Circle, Al Furjan: AED 12 to 18 / sqft (standard residential).
• Dubai Marina, JBR, Downtown: AED 18 to 28 / sqft (premium buildings).
• Palm Jumeirah, DIFC, City Walk, Emaar Beachfront: AED 25 to 38 / sqft (signature with beach access).
• Ultra-prime branded residences (Bulgari, Armani, Bugatti): AED 35 to 45 / sqft.

For a 1,200 sqft 2-bedroom in Downtown, expect AED 21,600 to 33,600 / year of service charges (≈ €5,400 to €8,400), paid quarterly.

DEWA (electricity + water) — connection + deposit

Opening a DEWA account: AED 130 flat fee + refundable deposit of AED 2,000 for an apartment (AED 4,000 for a villa). Average monthly bill: AED 400 to 800 for a studio or 1BR, AED 900 to 1,800 for a 2-3BR (AC ≈ 60% of the bill).

Chiller & district cooling — building-dependent

AC often runs through a third-party operator (Empower, Emicool, Palm District Cooling) billed separately. Setup fee ≈ AED 250 + AED 2,000 deposit. Consumption ≈ AED 600 to 1,500 / month depending on season and area.

Ejari — tenancy registration (if let)

If you let the property, each lease must be registered with Ejari (RERA). Flat fee: AED 220 per lease. Usually paid by the tenant but negotiable.

6. Three full worked examples

Example A · Off-plan studio at AED 1.2M (cash)

• Listed price: AED 1,200,000
• DLD 4%: AED 48,000
• Oqood: AED 4,000
• Agent commission: AED 0 (direct off-plan)
• Total entry cost: AED 1,252,000 (+4.3%)
• Annual service charges to plan for: ≈ AED 8,500

Example B · Secondary 2-bedroom at AED 2.8M with 75% LTV mortgage

• Listed price: AED 2,800,000
• DLD 4%: AED 112,000
• Trustee fee: AED 4,000
• Agent commission 2% + VAT: AED 58,800
• NOC (seller-side, often fronted): ≈ AED 1,500
• Mortgage discharge: AED 1,290
• Bank arrangement fee 1% of loan (2.1M): AED 21,000
• Property valuation: AED 3,000
• Mortgage registration 0.25% + admin: AED 5,540
• Total entry cost: AED 3,007,130 (+7.4%)
• Cash down required (25% + fees): AED 907,130
• Annual service charges: ≈ AED 27,000

Example C · Signature villa at AED 15M (cash)

• Listed price: AED 15,000,000
• DLD 4%: AED 600,000
• Trustee fee: AED 4,000
• Agent commission 2% + VAT: AED 315,000
• Developer NOC: AED 3,000
• Total entry cost: AED 15,922,000 (+6.1%)
• Annual service charges (branded 6,000 sqft villa at AED 22): ≈ AED 132,000

7. What The Penthouse absorbs in its package

Our model is developer-remunerated — we charge no buyer-side commission, either on direct off-plan or on secondary transactions when we represent both parties. Also included in our package:

• Trustee coordination and DLD transfer appointment.
• Non-resident-eligible bank shortlist + mortgage file preparation.
• Title due diligence + service-charge verification on any secondary resale.
• NOC & Trustee-fee negotiation with the developer (average saving AED 3,000 to 8,000).
• Handover checklist + rental-management setup on request.

Frequently asked questions

The real cost of buying in Dubai is not opaque, provided an established firm opens the line-by-line accounting from the first exchange. If you are preparing a 2026 acquisition and want to model your total budget (purchase + post-handover charges + French tax exposure), write to us. We share a numbered simulation before any commitment.

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