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The Costs of Buying Property in Dubai - A Complete Guide (2024)

Discover key insights into the costs of buying a property in Dubai in 2024. Learn about DLD fees, mortgage expenses, and more to help you budget for a property purchase

Dubai’s real estate market offers lots of opportunities for investors and homebuyers to buy an amazing property. But, understanding the costs involved is crucial for making informed decisions. In this post, we break down the cost of buying a property in Dubai, which we split into the costs you can expect regardless of whether you buy using cash or a mortgage, the additional costs of buying with a mortgage, and further costs that you should expect after purchasing the property.

What Is The Actual Cost Of Buying A Property In Dubai?

When buying a property in Dubai, on top of the down payment you need to save for, there are various upfront fees you’ll have to pay. These can add up to about 6%-8% of the property’s value. Fortunately, some banks allow you to finance some of these fees. More on that later.

For now, here’s a breakdown of the upfront costs you’ll need to pay if buying property in Dubai.

Fees To Buy A Property (Using Cash Or A Mortgage)

  1. DLD Fees: The Dubai Land Department (DLD) charges 4% of the property price plus administrative fees, which vary based on the property type. This fee is a significant part of the initial cost​​.

  2. Registration Fees: For properties valued below AED 500,000, the registration fee is AED 2,000 plus 5% VAT. For properties valued above AED 500,000, the registration fee is AED 4,000 plus 5% VAT​​.

  3. Agency Fees: When purchasing through a reputable real estate agency, buyers typically pay a commission of 2% of the property price plus 5% VAT​​.

  4. Conveyance Fees: Conveyancing fees are the costs for handling the legal and administrative aspects of the property transfer. This cost typically ranges from AED 6,000 to AED 10,000​​.

  5. Security Deposit: To secure the purchase, buyers often pay a deposit of around 10% of the property price, collected by a RERA-registered broker​​.

Extra Fees When Buying A Property Using A Mortgage

If you choose to use a mortgage to finance your home purchase, you can expect to incur all of the above costs, plus these additional fees:

  1. Mortgage Registration Fees: Up to 0.25% of the loan amount plus AED 290. This is charged by the DLD for registering the mortgage​​.

  2. Mortgage Arrangement Fees: Typically around 1% of the bank loan amount plus 5% VAT. These are the fees charged by the bank for arranging the mortgage​​.

  3. Property Valuation Fees: Banks usually require a property valuation, which can cost between AED 2,500 to AED 3,500 plus 5% VAT​​.

Additional Costs to Consider

Whilst the following costs aren't involved in the transaction of buying a property itself, they are typical costs that you can expect to incur once you have purchased the home. So, these fees should be factored into your budget:

  1. Insurance: While not mandatory, home insurance is highly recommended. Average costs are around AED 1,000 per year. Life insurance may also be required if purchasing with a home loan, typically 0.4% to 0.8% of the decreasing loan amount per year​​.

  2. Service Charges: These annual charges cover maintenance and amenities of the property. They vary based on the property size and facilities​​.

  3. DEWA Deposits: For setting up Dubai Electricity and Water Authority services, costs range from AED 2,000 for a flat to AED 4,000 for a villa​​.

  4. Moving Fees and Furnishings: These are variable costs depending on the size of the property and the level of furnishing required.

What If I Can't Afford The Extra Fees?

If you’re struggling to get the extra cash together to pay all the fees for buying a property, then you’re in luck! A select few banks offer ‘free financing’, meaning you can borrow up to 85% (resident) or 80% (non-resident) of certain costs like the 4% Dubai Land Department fee. This amount is added to your mortgage and repaid over the length of your mortgage term.

How Can I Avoid Paying Mortgage Broker Fees?

By going through a traditional mortgage broker, you will typically have to pay AED 5,000 + VAT or up to 0.5% of the property value. using Huspy as your mortgage broker is 100% free. We don’t charge any hidden fees or extra costs. You’ll save thousands! And best of all, because we help you find honest and best rates, you’ll save thousands every year by paying less interest on your mortgage over the long term.

How Do The Costs Compare To Other Global Cities?

You may be wondering how the costs of buying and selling a property in Dubai compare to other major cities around the globe. A recent study found that the cost of buying and selling a property in Dubai was considerably less expensive than in many global cities including London, New York, and Sydney. Plus, unlike many of the cities studied, Dubai did not have any holding costs (like property taxes) that would be incurred by the owner.


Understanding these costs is vital for a smooth property buying experience in Dubai. It’s advisable to stay up to date with the latest market trends and consult with an experienced real estate professional for guidance. With proper planning and budgeting, buying a property in Dubai can be a great investment decision.

Written by Joshua Hughes

Published on 23 January 2023

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