Dubai residential delivered another record year in 2025: roughly 226,000 transactions worth AED 760+ billion according to DLD. Average price growth moderated into single digits in prime areas after the post-2021 surge. Underwriting matters more in 2026 than it did in 2022.
Transaction costs
- DLD transfer fee: 4% of property value
- DLD registration fee: AED 4,000 (properties over AED 500K)
- Trustee fee: AED 4,000 + 5% VAT
- Agency commission: 2% + 5% VAT
- Mortgage registration: 0.25% of loan amount + AED 290
- NOC fee: AED 500–5,000 depending on developer
Plan for 6–7% total transaction costs on a cash purchase, slightly more with a mortgage.
Mortgage caps
The UAE Central Bank's loan-to-value caps (as of 2026) remain:
- First property under AED 5M: 80% LTV for UAE nationals, 75% for expats
- First property over AED 5M: 70% LTV nationals, 65% expats
- Second property: 65% LTV nationals, 60% expats
- Off-plan: 50% LTV regardless of nationality
Yields and service charges
Gross rental yields in 2026 typically run 5–7% in mid-market apartment communities (JVC, Dubai Sports City, Town Square), 4–5% in prime apartment districts (Downtown, Dubai Marina, Business Bay) and 3–4% in branded prime (Palm Jumeirah, Bluewaters, Emirates Hills villas). Service charges vary enormously — AED 12–20/sqft in mid-market, AED 25–45/sqft in branded prime, occasionally AED 60+/sqft in ultra-luxury towers. Always pull the actual service-charge schedule before underwriting.
Launch-day allocation vs secondary
Top-tier launches (Emaar Beachfront, Aldar Saadiyat, Sobha Hartland II, Damac Lagoons) routinely sell out on launch day. A launch-day allocation captures the developer's payment plan (typically 20/80, 40/60 or 60/40) and an entry price below subsequent re-rate. The trade-off is completion risk and the need to commit within hours. Secondary purchases are immediate, but the price reflects whatever re-rate has already occurred.
Service-charge and chiller risk
District cooling (chiller) charges sit outside the service charge in most towers and run AED 0.5–0.8 per RT/hour plus a fixed capacity charge. For Palm Jumeirah and Downtown towers this can add AED 15,000–30,000 per year to the holding cost of a 2BR unit.
Exit liquidity
The Dubai secondary market is genuinely liquid — average days-on-market for well-priced product in prime areas ran 30–60 days through 2025. Ultra-prime (AED 50M+) and trophy villas have thinner buyer pools and longer marketing cycles.
For pre-acquisition underwriting, speak with our advisory team.