Haus Ville Real Estate | Dubai




Many expats living in Dubai yearn to have a place of their own. Until the introduction of freehold properties, they were limited to renting. With property prices now more affordable and steadily declining, buying property in Dubai has become a feasible aspiration for many. Mortgage repayments can be less than rent in certain instances, and there is also the potential for capital growth. Nonetheless, buyers need to understand the additional costs associated with purchasing a home, such as those imposed by the Dubai Land Department (DLD), real estate agents or developers, mortgage lenders, and conveyancers.

Agent’s Commission

Employing a real estate agent can increase your property purchase cost by 2% plus Value Added Tax (VAT) which is due upon completion of the sale. However, the right professional can make the transaction much smoother. A qualified agent will provide you with the best advice as you traverse the Dubai real estate market and the community you are buying into, as well as the property development.

They will also manage the entire buying process from beginning to end, keeping you informed throughout and helping you understand all related costs. Additionally, appointing a licensed conveyancer is advised to guarantee that all documentation, contracts, and financial arrangements related to the transaction are legally sound. The conveyance fee for these services ranges from AED 6,000 to AED 10,000.

Transfer Fees

In Dubai, buyers and sellers are protected by certain regulations when it comes to real estate. This includes upfront fees that are separate from the price of the property, which vary based on the type of property and area.

An important fee is the Dubai Land Department (DLD) fee, which is 4% of the total price of the property and is divided equally between the buyer and seller, though it is typically paid by the buyer. Additionally, the buyer’s registration fees depend on the property’s value with those below AED 500,000 paying AED 2000 + 5% VAT and those above AED 500,000 paying AED 4000 + 5% VAT.

If the buyer is taking out a bank loan to pay for the property, they need to pay mortgage registration fees up to 0.25% of the loan amount plus AED 290. It is important to note that DLD fees must be paid within 60 days or else the purchase will be canceled. Those not taking out a loan do not need to pay mortgage registration fees.

Mortgage Costs

Those purchasing the property with a loan must pay mortgage fees in Dubai, which is a combination of mortgage arrangement fees, processing fees, and valuation fees. If you need to register the mortgage, you will be required to pay a NOC (No Objection Certificate) fee ranging from AED 500 to AED 5000.

The major components of the mortgage fees are the mortgage arrangement fees which equal 1% of the bank loan amount plus 5% VAT, and the property valuation fees which range from AED 2500 to AED 3500 plus 5% VAT.

Maintenance Fees

In Dubai, homeowners who own property have to pay recurring service charges to cover the property management aspects such as cleaning, security staff, landscaping, and upkeep of the building.

This applies to all types of properties for sale including villas for sale, apartments for sale, retail, or commercial. The cost of these charges depends on various factors such as the neighborhood, project type, and the purpose for which the property is purchased.

It can range from AED 3 to AED 30 or more per square foot. Ultimately, when the property is transferred, the buyer is responsible for the annual maintenance expenses, also known as service charges. These are paid to the Dubai Land Department according to the RERA service and maintenance index.


The expenses associated with purchasing an Apartment for sale in Dubai include DEWA fees. This is administered by the authority which oversees the supply of electricity and water to all the residences in the city.

The amount for DEWA differs based on the property’s type and the area where it is located. Generally, the charges range from AED 2,000 for a flat to AED 4,000 for a villa depending on the number of meters.

ISTA (Individual Sub-Metering for Tenants and Allocation)

ISTA Measures the energy usage within a building to assign charges billed by the utility (for example, a district cooling provider) based on the individual usage, which is registered by individual meters and is referred to as sub-metering.

This ensures a fair billing system, as occupants will only be charged for the energy they use. Sub-metering gives occupants more control over their energy consumption and costs, and it has been demonstrated to encourage responsible energy usage and result in energy savings that can help reduce environmental impact.

Legal and Documentation Costs

You will need to pay a few administrative costs when purchasing a new property in the emirate. These can be broken down as follows: AED 520 for the Title of Deed, AED 4,200 for DLD admin fees, and 4% of the property value for DLD fees.

Purchasing a property is not simply a matter of providing payment and receiving the unit. The entire process and the paperwork involved can be complex and difficult to comprehend for the average person. Additionally, it is unlikely for individuals to be familiar with the laws associated with the acquisition of property. Since you are investing significant money into your purchase, it would be prudent to obtain legal advice to protect your interests.

To Wrap Up

Creating a plan for purchasing a home is essential if you are looking to save up for one. It is important to be aware of the amount needed for the down payment along with the additional costs, as many assume they need 20% when it could be as low as 10% or even less depending on the loan.

If you’ve already started saving or have just begun, there are numerous options available to help you save for the down payment. Formulating a budget and discovering ways to reduce expenses or increase income can be beneficial.


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