Buying Property In Dubai

What Are The Costs Of Buying Property In Dubai?

The market of real estate in Dubai is widely acclaimed for its vast array, excellence, and high chances of capital growth. This metropolitan area has become a much sought-after spot by local and global purchasers scouting for an ideal dwelling with a favourable yield on investment. It is highly important to comprehend the various expenses related to purchasing real estate in Dubai, which range from down payments to transfer fees, realtor commissions and maintenance costs. This is to ascertain that potential buyers are making an informed choice that caters to their budget and investment aspirations.

Recognizing the numerous costs associated with buying real estate in Dubai is very important. These costs can range from the down payment to transfer fees, realtor commissions, and maintenance expenses. Knowing these expenses ahead of time can assist potential purchasers in making an informed decision that will suit their budgetary needs and investment goals. Real Estate Agents in Dubai can assist you in finding the best property deals for you. Dubai’s real estate market is renowned for its vast selection, quality, and possibility of capital growth, making it a sought-after destination for local and foreign buyers.

Let us look at the hidden costs of buying a property in Dubai

Down Payment 

The initial cost when purchasing a home in Dubai is typically a down payment. In many cases, UAE nationals are required to pay 25% of the property’s overall value, while expats are required to pay 35%. However, certain developers provide more flexible payment plans that may reduce the down payment to 10% of the property’s value. If you are all set to buy a property, look for the best in the list of Properties for Sale in Dubai. 

Real Estate Agent Fees 

Real estate agents provide an invaluable service in Dubai’s property market, finding the right property, negotiating prices, and finalizing sales. To be compensated for this activity, they typically charge a commission of 2-5% of the property’s value. Nonetheless, some developers may offer properties that don’t require any real estate agent fees.

Department Fees 

For any property purchase in Dubai, the Dubai Land Department (DLD) oversees the transaction and registration process. Individuals need to pay the DLD fees, which consist of a 4% transfer fee and a 0.25% mortgage registration fee. Such fees are calculated according to how much the property is worth and must be paid for by the buyer.

Title Deed Fees

Title deed fees, a one-time cost, are usually paid by the purchaser to the Department of Land and Property (DLD) to have the property registered in the buyer’s name. Typically, this fee is AED 4,000.

Mortgage Fees 

The buyer needs to cover fees such as an arrangement fee (usually 1-2% of the mortgage amount), mortgage registration fees (often 0.25% of the mortgage sum), and the valuation fee of around AED 2,500 if they are taking out a mortgage to purchase the property. Companies that provide Mortgage Services in Dubai can assist you. 

Maintenance Fees 

Owning a property in Dubai involves regular payments of maintenance fees. These payments cover the upkeep of shared facilities like pools, exercise centres, and gardens. Maintenance expenses can change depending on the property’s size, location, and features, usually amounting to AED 5 to AED 25 per square foot.

Service Charges 

The cost of utilities and other services associated with owning property in Dubai is reflected in service charges. These fees depend on the property’s size, location, and features but usually range from 10 to 20 Dirhams per square foot.


Insurance is necessary if one wishes to own a property in Dubai. Different insurance policies protect either the structure of the property or its contents, and premiums vary depending on the property’s spot, size, and worth. Generally, premiums range from AED 1,500 to AED 5,000 per annum.

Final Thoughts 

Purchasing property in Dubai can be a potentially rewarding venture, but consumers need to be aware of the expenses of buying and owning a property in Dubai. Buyers need to consider the different costs associated with acquiring a property, including down payment, real estate agency charges, DLD fees, title deed fees, mortgage charges, maintenance fees, service charges, and insurance. 

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