The True Cost of Buying Property in Dubai: Fees Explained

Dubai's headline advantage is famous: no annual property tax, no income tax on rent, no capital gains tax. But buying still involves one-time fees that first-time buyers routinely underestimate. Here is the complete picture.

Government fees

• DLD transfer fee — 4% of the purchase price, paid to the Dubai Land Department. This is the single largest cost on top of the price.
• Oqood registration (off-plan) — the interim registration of your sales agreement with the DLD.
• Title deed issuance and admin fees — modest fixed amounts at handover or transfer.

Transaction costs

• Agency commission — commonly 2% on secondary-market purchases. On off-plan launches, the developer typically pays the broker, meaning buying through a platform like Propmart adds nothing to your price.
• Mortgage costs (if financing) — bank arrangement fees, valuation fees, and a DLD mortgage registration fee of 0.25% of the loan amount.

Ownership costs

• Service charges — annual fees per square foot that fund building maintenance, security and amenities. They vary meaningfully between buildings and districts; always ask for the current rate before buying.
• Utilities registration — DEWA connection deposits.

Rule of thumb

Budget roughly 6–8% on top of the purchase price for a financed secondary purchase, and less for an off-plan launch where the developer covers commission and fees are staged. And remember the flip side: once you own, Dubai's zero recurring property tax means ongoing costs are limited to service charges — a structural advantage over most global cities.