All the Costs of Buying Property in Dubai — DLD Fees, Trustee & Agency Explained

One of the most common mistakes first-time Dubai property buyers make is budgeting only for the purchase price — and then being surprised by the additional transaction costs. While Dubai's ongoing property ownership costs are genuinely low (0% annual property tax, 0% capital gains tax, per Dubai Land Department regulations), the one-time transaction costs at purchase — totalling approximately 6–7% above the purchase price — are meaningful and must be factored into your total investment budget from the outset. Here is the complete, honest breakdown.

Dubai Land Department (DLD) Registration Fee — 4%

This is the largest transaction cost and is non-negotiable. The DLD registration fee is 4% of the property's purchase price, payable by the buyer at the time of transfer. It is paid directly to DLD via manager's cheque at the trustee office on transfer day. On a AED 1,000,000 property, this is AED 40,000. On a AED 3,000,000 property, it is AED 120,000.

For off-plan purchases, the equivalent fee is still 4% (processed as an OQOOD registration fee through DLD), typically payable within 30–60 days of SPA signing rather than at handover.

Real Estate Agency Commission — 2%

In secondary market (resale) transactions, the buyer pays their own broker's commission of 2% of the purchase price. On a AED 1,000,000 property, this is AED 20,000. This is separate from the seller's agent commission, which is paid by the seller.

For primary (developer) off-plan purchases, the commission is almost always paid by the developer — not the buyer. This means buying off-plan through a registered broker costs you nothing in agency fees while still giving you full professional representation.

Trustee/Transfer Fee

A small administrative processing fee paid to the DLD-approved trustee office that handles the transfer. The fee is:

• AED 4,200 for properties valued at AED 500,000 and below
• AED 5,250 for properties valued above AED 500,000

This fee is typically split evenly between buyer and seller (AED 2,100 or AED 2,625 each) by convention, though the exact split can be negotiated in the MOU.

Mortgage Registration Fee (If Applicable)

If you are financing the purchase with a UAE mortgage, an additional fee of 0.25% of the loan amount is payable to DLD as a mortgage registration fee, plus AED 290 administrative charge. On a AED 750,000 mortgage, this is AED 1,875 + AED 290 = AED 2,165. Banks may also charge a mortgage arrangement/processing fee of AED 2,000–5,000.

Title Deed Issuance Fee — AED 520

A minor administrative fee paid to DLD for the physical issuance of the title deed in the buyer's name. This is AED 520 per title deed.

Property Valuation (Mortgage Only) — AED 2,500–3,500

Banks require an independent property valuation before approving a mortgage. The valuation fee is typically paid by the buyer and ranges from AED 2,500 to AED 3,500 depending on the bank and the property value.

Worked Example: AED 1M Cash Purchase

Here is a complete cost breakdown for a AED 1,000,000 ready property purchased with cash:

• Purchase price: AED 1,000,000
• DLD registration fee (4%): AED 40,000
• Agency commission (2%): AED 20,000
• Trustee fee (buyer's share): AED 2,625
• Title deed fee: AED 520
• Total: AED 1,063,145 — approximately 6.3% above purchase price

Worked Example: AED 2M Mortgage Purchase

• Purchase price: AED 2,000,000
• DLD registration fee (4%): AED 80,000
• Agency commission (2%): AED 40,000
• Trustee fee (buyer's share): AED 2,625
• Mortgage registration (0.25% of AED 1.5M loan + AED 290): AED 4,040
• Bank arrangement fee: AED 3,000 (estimate)
• Property valuation: AED 3,000 (estimate)
• Title deed fee: AED 520
• Total above purchase price: AED 133,185 — approximately 6.7%

Ongoing Annual Costs to Factor In

Beyond transaction costs, budget for:

• Annual service charge: AED 8–35 per sqft depending on building, paid to the Owners' Association
• Contents/landlord insurance: AED 500–2,000 per annum
• Property management fee (if using a manager): 5–8% of annual rental income
• DEWA connection fee (new property): AED 2,000–4,000 one-time