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Buyer’s Guide 2023: Fees for Buying Property in Dubai 2024

Serious about buying property in Dubai? Today’s blog is just for you. Today, we’ll discuss all the ins and outs regarding the fees for buying property in Dubai.
Dubai’s property sector has been on the rise and is a major investment hub. Moreover, as of 2023, the property landscape of Dubai has drastically changed and has peaked for the better.
As we move into January 2024, property transactions worth AED 16.8 billion have taken place thus far at the start of the year during the last two days. So, we can see that the year is already going strong for Dubai’s property sector.

First, let’s explore the different property options that you can buy in Dubai. So stay tuned and keep reading. 

Options in Dubai’s Property Market

Dubai’s property market is filled with various options for accommodation and investment. In Dubai, you’ll find apartments such as “Studio” and “Multiple bedroom” apartments. Moreover, you’ll also find villas, townhouses, office accommodations, as well as mixed-use land. So, there are many options available, depending on your budget, priorities, and family size. 

Fees For Buying Property in Dubai

Let’s explore the various fees that you need to pay when buying a property in Dubai.  According to Bayut, the additional charges for buying property in Dubai range between 7 to 10% of the property price. Let’s study what these charges are. 

1. Government and administrative charges

The government of Dubai charges various charges to regulate property transactions in Dubai. These charges include the DLD fees, property registration fees, mortgage registration fees, and documentation costs. 

Let’s start with the DLD(Dubai Land Department) fees. The DLD Fees in Dubai amount to 4% of the property price, of which one-half is paid by the seller, while the other half is paid by the buyer. 

The property registration fee is AED 4000 if the property’s value is equal to or exceeds AED 500,000, and AED 2,000 if the property value is less than AED 500,000. 

When it comes to mortgage registration fees, the amount is 0.25% of the mortgage value. Now, let’s talk about the fee for the title deed, which is AED 250. 

2. Agent and brokerage fees

The property service charges for real estate agents are generally 2% of the property’s sale value, accompanied by a 5% additional value-added tax on the fee. Other than this, there are 5% legal and conveyance charges that amount to anything between AED 5,000 and AED 10,000. These charges are for the legal efforts needed to transfer ownership of the property. 

3. Mortgage-Related Costs

Mortgage-related costs include the costs associated with buying a mortgage for your home. The first stage where costs are incurred in the mortgage process is property valuation. 

The mortgage fee for valuing your property is typically between AED 2,500 – 3,500, alongside a 5% value-added tax. The next cost incurred is the cost of the mortgage arrangement fee.  This fee is 1% of the property value alongside a 5% VAT applied on the charges. 

Once these steps are completed, you’ll have to pay for the NOC (No objection certificate) which certifies that you are approved for a mortgage loan, as your property is free from any objections. The fee for the No Objection Certificate ranges from AED 500 – 5,000, depending on the complexity of the property. 

4. Property maintenance and additional fees

Maintenance costs are the recurring costs that you’ll bear when buying a property in Dubai. As a result, these costs are also known as the “hidden costs” of buying property.

These costs include annual service charges and DEWA fees. The service charges are determined by the RERA service charge and maintenance index. Property holders are required to pay these charges every quarter to maintain the upkeep of the property. 

The charges vary for various property types, depending on the covered area of your property. But generally, apartments pay more in comparison to villa or townhouse owners. 

The DEWA fee is the charge payable to the Dubai Electricity and Water Authority. These charges fall between AED 2,000 for an apartment and AED 4,000 for a villa and contribute to the ongoing functionality of your property in terms of ensuring the continuous provision of water and electricity. 

5. Home insurance fees

Home insurance charges are important as they save you from the brunt of a major financial hit resulting from damages to your property. The first thing is the home and contents insurance. This policy prevents you from facing damage to your home, and the items present inside it. 

For example, if you face a short circuit in your home, leading to a fire that engulfs half of your property, damaging your valuables, your insurance provider will pay for the damage caused. This not only includes the structure of your home, but also the carpets, decoration pieces, and whatever else is a part of your house. 

The next type of insurance cost that you’ll incur is the cost of insuring your mortgage. Typically, the mortgage insurance cost ranges between 0.4 – 0.8% of the decreasing loan value. Thus, each year your  mortgage amount decreases, your premium also falls accordingly along with the benefit that you’ll receive in case of any unforeseen event. 

6. Initial Purchase Costs  

Purchase costs associated with buying property include the initial security deposit, which is 10% of the purchase price. For example, if your property value is AED 500,000, your security deposit amounts to AED 50,000. 

Hence, these are all the payable fees for buying property in Dubai. Now, time to recap what we learned throughout this blog. 

The Takeaways

Dubai is a land of opportunity with a booming real estate sector as a hub of investment for both residents and non-residents. However, before buying property in Dubai, you need to pay various administrative and legal fees. 

The costs incurred when buying a property in Dubai include 

  1. Initial Costs, which include the security deposit.
  2. Government and administrative fees to be paid to authorities like the Dubai Land Department.
  3. Insurance costs to protect your property from unforeseen damages, and pay your mortgage smoothly in case of an unexpected tragedy. 
  4. Property maintenance costs to ensure the upkeep of your property. 
  5. Agent and brokerage fees paid at the time of the property purchase.

      Hence, these are the costs that you’ll have to pay to acquire a property in Dubai. 


1. Is a Mortgage Registration Fee Required When Buying Property in Dubai? 

Ans. Yes, a mortgage registration fee is required when you’re buying property in Dubai. The Fee is 0.25% of the mortgage value. 

2. What Are the Documentation Costs of Buying Property in Dubai? 

Ans. There is only one documentation cost incurred while buying property in Dubai, which is the AED 250 for the title deed.

3. What Is The Real Estate Broker’s Commission in Dubai?

Ans. The brokerage commission is mostly 2% of the value of the property, along with an additional 5% value-added tax. 

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