The most common buyer mistake in Dubai is budgeting only the purchase price. Total transaction costs typically come to 7–8% of price for a financed ready purchase. Here is the line-by-line.
Ready property — one-time fees
- DLD Transfer Fee: 4% of purchase price. The main registration fee, payable at the DLD trustee office.
- DLD Admin Fee: AED 580.
- Trustee Office Fee: ~AED 4,000 (properties over AED 500K); AED 2,000 below; up to AED 5,250 for high-value transactions.
- Title Deed issuance: AED 250.
- Agent Commission: ~2% of purchase price (industry standard; negotiable). Agent must hold a RERA card.
- NOC (No Objection Certificate): AED 500–5,000, paid to the original developer to confirm no outstanding charges.
- Mortgage Registration Fee: 0.25% of loan amount + AED 290 (if financed).
Cash purchase, ready property: ~6–7% of price. With mortgage: ~7–8%.
Off-plan property — one-time fees
- Oqood Registration Fee: 4% of purchase price, paid to DLD at SPA execution. Replaces the DLD transfer fee at this stage.
- DLD Admin Fee: AED 580.
- Agent Commission: ~2% if applicable — often paid by the developer on primary sales.
- NOC / final transfer at completion: typically AED 500–1,000.
Off-plan total: ~4–6% of price at contract.
Annual ownership costs
- Service Charges: AED 10–30/sqft/year — typical AED 12–18 in established communities, AED 25–35+ in ultra-luxury high-rises (Downtown, Marina, Palm).
- Annual property tax: Zero.
- Capital gains tax: Zero.
- Income tax on rental: Zero.
- Corporate tax: 9% if structured through a UAE company; individuals are exempt.
The structural point
The 7–8% one-time entry cost is real and must be recovered before break-even. But Dubai's annual carrying cost — no property tax, no income tax, no CGT — is materially lower than virtually any global comparator (London, New York, Paris, Singapore). On a multi-year hold, that gap compounds.
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