Dubai is one of the lower-cost markets in the world to transact in, but the all-in figure is more than the sticker price. Here is every one-off and recurring cost, what it actually comes to, and how it shapes your real return.
The headline cost is the DLD transfer fee of 4% of the purchase price, plus small fixed admin amounts. On the secondary market you also pay an agency fee of around 2% + VAT. If you finance, add mortgage registration of 0.25% of the loan plus a bank arrangement fee and a valuation fee. Optional but recommended conveyancing runs AED 6,000–10,000.
| Item | Amount |
|---|---|
| DLD transfer fee | 4% + AED 580 |
| Trustee office fee | AED 4,000–4,200 |
| Agency fee | 2% + 5% VAT |
| Mortgage registration | 0.25% of loan + ~AED 290 |
| Valuation | AED 2,500–3,500 |
| Conveyancing | AED 6,000–10,000 |
Officially the 4% is shared, but in practice the buyer pays the full 4% in almost all Dubai transactions — factor it in as your cost. Agency fees are usually paid by whichever side the agent represents; with an independent buyer’s agent you pay their fee and gain a negotiator who frequently saves more than the fee on price.
Every freehold community levies an annual service charge, billed per square foot and set by the master developer and owners’ association. It funds maintenance, security, landscaping and shared amenities. Rates vary widely — value communities may be AED 8–14/sqft, while prime serviced towers and Palm villas can exceed AED 25–30/sqft. Always request the current rate before buying; it materially affects net yield.
A lower price with a high service charge can net less than a higher price with a low charge. Compare net yield, not gross — see the investment areas guide.
Air-conditioning is either via DEWA (standard electricity) or a district cooling provider (e.g. Empower) that bills separately, sometimes with a capacity/demand charge even when the unit is empty. District cooling can be efficient when occupied but adds a fixed cost for investors holding vacant units. Confirm which applies before purchase.
For individuals there is no annual property tax, no income tax on rent, and no capital-gains tax on sale. VAT (5%) does not apply to residential resale, though it can apply to some commercial property and to agency fees. Short-term holiday lets carry a municipality/tourism fee per night. Overall the tax position is a core reason international investors choose Dubai.
On exit you typically pay an agency fee (around 2%) and, if you have a mortgage, a small early-settlement and mortgage-discharge cost. There is no capital-gains tax. If the buyer is financing, expect to provide the NOC and clear any service-charge arrears before transfer.
Budget roughly 6–8% on top of the price for a cash purchase with an agent: 4% DLD transfer, ~2% agency plus VAT, and small admin and (optional) conveyancing fees. Financing adds ~0.25% mortgage registration plus bank fees.
No annual property tax and no tax on rental income or capital gains for individuals. The main recurring cost is the community service charge, billed per square foot.
Annual fees billed per square foot that fund maintenance, security and amenities. They range from roughly AED 8/sqft in value communities to AED 25–30+/sqft in prime serviced buildings, and directly affect net yield.
Although nominally shared, in practice the buyer pays the full 4% in almost all Dubai transactions.
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