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Understand the full breakdown of Dubai property transaction costs, including DLD fees, agency commissions, mortgage charges, and hidden expenses in 2025.
Article Overview
Introduction to Dubai Property Transaction Costs
1. Dubai Land Department (DLD) Fees
2. Real Estate Agency Commission
3. Mortgage-Related Costs (For Financed Buyers)
4. NOC (No Objection Certificate) Fee
5. Service Charges & Maintenance Fees
6. Oqood Registration Fee (For Off-Plan Properties)
7. DEWA (Dubai Electricity & Water Authority) Connection Fees
9. Selling a Property: Fees & Costs
b) Mortgage Prepayment Penalty (If Applicable)
c) NOC Fee (As Mentioned Above)
10. Hidden Costs & Miscellaneous Fees
11. How to Minimize Property Transaction Costs in Dubai?
Introduction to Dubai Property Transaction Costs
Introduction to Dubai Property Transaction Costs
Investing in Dubai real estate is a lucrative opportunity, but buyers and sellers must be aware of all associated transaction costs and fees. Whether you're purchasing a ready property, an off-plan unit, or selling a home, understanding the Dubai Land Department (DLD) charges, broker commissions, mortgage costs, and maintenance fees is essential for proper financial planning.
This guide provides an in-depth breakdown of all property-related expenses you may encounter when buying or selling in Dubai.
1. Dubai Land Department (DLD) Fees
1. Dubai Land Department (DLD) Fees
The Dubai Land Department (DLD) oversees all property transactions and levies mandatory charges.
a) DLD Transfer Fee (4%)
a) DLD Transfer Fee (4%)
4% of the property price (paid by the buyer).
Split between the buyer and seller in some cases.
b) DLD Admin Fee
b) DLD Admin Fee
AED 2,000 for properties under AED 500,000.
AED 4,000 for properties over AED 500,000.
2. Real Estate Agency Commission
2. Real Estate Agency Commission
When purchasing or selling property in Dubai, real estate agents charge a commission fee for their services.
Typical commission: 2% of the sale price (paid by the buyer).
Some agencies charge 1.5% to 3%, depending on the deal.
VAT (5%) is applicable on the commission amount.
3. Mortgage-Related Costs (For Financed Buyers)
3. Mortgage-Related Costs (For Financed Buyers)
If you’re taking a mortgage in Dubai, additional costs apply.
a) Mortgage Registration Fee
a) Mortgage Registration Fee
0.25% of the loan amount + AED 290 DLD admin fee.
Example: If you take a AED 2M mortgage, you’ll pay AED 5,290 in registration fees.
b) Bank Processing Fee
b) Bank Processing Fee
0.5% to 1% of the loan amount, capped at AED 25,000.
Some banks offer discounts or promotions on processing fees.
c) Mortgage Valuation Fee
c) Mortgage Valuation Fee
Ranges from AED 2,500 to AED 3,500 (paid to the bank).
🔗 Compare Dubai Mortgage Options
4. NOC (No Objection Certificate) Fee
4. NOC (No Objection Certificate) Fee
Required when transferring ownership of a property.
AED 1,500 to AED 5,000, depending on the developer.
Paid by the seller.
5. Service Charges & Maintenance Fees
5. Service Charges & Maintenance Fees
Dubai properties have annual service charges paid to developers or building management.
Rates vary by location & property type (AED 3 to AED 30 per sq. ft.).
Example: A 1,500 sq. ft. apartment in Downtown Dubai with an AED 20 per sq. ft. fee would cost AED 30,000 per year.
6. Oqood Registration Fee (For Off-Plan Properties)
6. Oqood Registration Fee (For Off-Plan Properties)
For off-plan property buyers, an Oqood registration fee applies.
AED 1,000 + VAT (5%).
Paid to the Dubai Land Department.
Ensures legal protection of off-plan property rights.
🔗 DLD Off-Plan Property Registration
7. DEWA (Dubai Electricity & Water Authority) Connection Fees
7. DEWA (Dubai Electricity & Water Authority) Connection Fees
Apartments: AED 2,000 to AED 4,000.
Villas: AED 4,000 to AED 10,000.
🔗 Set Up DEWA for Your Property
8. Property Insurance Costs
8. Property Insurance Costs
Property insurance is optional but recommended.
Annual costs range from AED 1,000 to AED 3,000 for apartments.
Villas typically cost AED 3,000 to AED 10,000+.
🔗 Compare Dubai Property Insurance Plans
9. Selling a Property: Fees & Costs
9. Selling a Property: Fees & Costs
Sellers also have financial obligations when offloading a property.
a) Agency Commission
a) Agency Commission
Typically 2% of the selling price.
b) Mortgage Prepayment Penalty (If Applicable)
b) Mortgage Prepayment Penalty (If Applicable)
1% of the outstanding loan amount (capped at AED 10,000).
c) NOC Fee (As Mentioned Above)
c) NOC Fee (As Mentioned Above)
Paid to the developer before selling the property.
🔗 How to Sell a Property in Dubai
10. Hidden Costs & Miscellaneous Fees
10. Hidden Costs & Miscellaneous Fees
✔ Move-In Fees – Some communities charge AED 1,000 to AED 5,000 as a security deposit.
✔ Property Inspection Fees – If hiring a surveyor, costs start from AED 2,500.
✔ Short-Term Rental Permits – Required for Airbnb-style renting, starting at AED 1,500 per year.
🔗 Dubai Tourism Rental Permit Rules
11. How to Minimize Property Transaction Costs in Dubai?
11. How to Minimize Property Transaction Costs in Dubai?
✅ Negotiate Agency Commissions – Some brokers may offer reduced rates.
✅ Look for Mortgage Discounts – Many banks offer zero processing fee promotions.
✅ Consider Off-Plan Properties – Some developers cover DLD fees.
✅ Subscribe to GoDubai Portal – Access exclusive investment deals & legal insights.
🔗 Subscribe to GoDubai Portal for expert real estate guidance.
Conclusion
Conclusion
Understanding Dubai property transaction costs is crucial for buyers, sellers, and investors. Whether you’re purchasing a ready home or an off-plan unit, expenses like DLD fees, mortgage charges, and maintenance costs can impact your investment returns.
By planning ahead and working with a trusted real estate broker, you can minimize costs and ensure a smooth, hassle-free property transaction.
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