One of the biggest mistakes investors make in Dubai isn’t picking the wrong unit — it’s not budgeting correctly.
Dubai is still one of the most transparent markets once you know the structure. So here’s a clean, practical breakdown of what you’ll typically pay when buying:
- Ready property (resale / completed)
- Off-plan property (under construction)
- Cash purchase vs mortgage
No hype. Just the real cost framework investors should plan for.
1) The “Big 3” costs almost every buyer should budget for
DLD registration fee (the main one)
- 4% of the purchase price (headline fee investors budget for)
- In practice, payment responsibility can be buyer-paid or split depending on the deal structure.
Trustee / service partner fee (for transfer processing)
- Typically AED 4,000 + VAT if the property value is AED 500,000+
- Typically AED 2,000 + VAT if the property value is below AED 500,000
Agent commission (when buying from the secondary market)
- Commonly 2% of purchase price + VAT
- Negotiable, and off-plan often has a different structure because developers can pay commissions.
Investor tip
- These three costs usually decide whether your deal is “still a deal” after fees.
2) Other common costs (the ones people forget)
Title deed + map + small admin fees
- Budget a small fixed amount for title deed issuance, unit/villa map issuance, and small admin fees.
- These are not large versus the DLD 4%, but they’re part of the final bill.
NOC (No Objection Certificate) fee — resale only
- For resale transfers, the developer typically issues an NOC.
- Often ranges from hundreds to a few thousand AED (varies by developer/building).
3) If you’re using a mortgage: costs to plan for
Mortgage registration fee (DLD)
- 0.25% of the loan amount (plus small admin charges)
Bank costs (varies by bank)
- Processing/arrangement fee (often a % of the loan)
- Valuation fee
- Life/property insurance (sometimes required)
Investor mindset
- Mortgage costs aren’t “bad” — just plan them so your cash requirement doesn’t surprise you.
4) Off-plan vs ready: what changes in the fee structure?
Ready (completed / resale) — typical flow
- Price agreed → NOC → transfer at trustee → DLD registration fee paid → title deed issued
- Common costs: DLD (4%), trustee fee, agent (if applicable), NOC, title deed/map/admin fees
Off-plan (under construction) — two phases
- Phase 1: Initial registration during construction (Oqood/registration depending on project)
- Phase 2: Handover (completion) with final ownership/title deed stage
- Important note: Off-plan fee timing varies by project—always request the project’s full fee sheet before booking.
5) Quick budget examples (so you can estimate fast)
Example 1: Ready property at AED 1,000,000 (cash)
- DLD registration: AED 40,000
- Trustee: ~AED 4,000 + VAT
- Agent: AED 20,000 + VAT (if applicable)
- NOC: variable
- Title deed/map/admin: small fixed
Example 2: Same purchase with a mortgage (adds)
- Mortgage registration: 0.25% of the loan amount
- Bank fees: varies
Why investors ask for a closing statement
- This is why investors always ask for a full closing statement before committing.
6) Full buyer checklist (copy/paste)
Before you reserve
- Confirm freehold eligibility for the property/location
- Request the full fee sheet (DLD, trustee, NOC, admin, mortgage fees if applicable)
- Run your numbers using net yield (rent minus service charges minus vacancy buffer)
- Confirm service charges (current year, not estimated)
- If off-plan: verify developer delivery track record + escrow/registration process
At reservation / booking
- Booking form / reservation details confirmed
- Payment method clear (manager cheque / transfer / bank payment)
- If off-plan: SPA timeline + payment milestones confirmed
During transfer (ready/resale)
- NOC process initiated
- Trustee appointment booked
- Buyer funds prepared (fees + purchase price + VAT where applicable)
- Title deed issuance confirmed
During construction (off-plan)
- Keep receipts for milestones
- Track construction updates
- Confirm registration status (Oqood/initial registration where applicable)
At handover (off-plan)
- Snagging inspection
- Handover documents and final statements
- Title deed / final ownership documentation
- Setup utilities + leasing plan if rental strategy
Closing
If you’re investing in Dubai, this isn’t just “admin.” Fees decide your true entry price — which decides your real return.
If you want, DM “COSTS” and I’ll send you my Dubai Closing Cost Calculator format (simple worksheet) + a buyer-ready checklist you can forward to any agent or developer.
Disclaimer
This article is for general information only and is not financial, legal, or tax advice. Fees and procedures can vary by transaction type, value band, and project. Always confirm the official fee breakdown before signing or paying.
References
- Dubai Land Department (DLD) fee framework: 4% registration; trustee/service partner bands; mortgage registration (0.25% of loan).
- Typical market practice: secondary-market agent commission commonly ~2% + VAT (varies).
- Developer NOC/admin fees vary by building/project; always request the official fee sheet.