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manish kumar
Jul 142 min read

The Hidden Costs of Buying a Property in Dubai

Updated: Jul 16



Buying property in Dubai is an exciting venture, but it comes with a range of hidden costs that buyers must consider. Beyond the net selling price, several additional fees imposed by various authorities and service providers can significantly impact your budget. Here’s an in-depth look at these hidden costs to help you make an informed decision.


Government and Administrative Costs

  1. Dubai Land Department (DLD) Fees:

  • Transfer Fee: The DLD charges 4% of the property’s sales price.

  • Knowledge Fee: AED 430 for land plots, AED 40 for off-plan properties, and AED 580 for apartments and offices.

  1. Mortgage Registration Fee:

  • This fee is 0.25% of the loan amount plus an additional AED 290 administrative fee.

  1. Registration Trustee Fees:

  • AED 4,000 for title deed registration if the property price exceeds AED 500,000.

  • AED 5,000 for off-plan properties.

  1. No Objection Certificate (NOC) Fee:

  • Property developers charge between AED 500 and AED 5,000 for the NOC, required to transfer the property. Note that developers may also hand over properties that are up to 5% smaller than listed, requiring a careful review of the final property size.


Utility Connection Fees

  1. Dubai Electricity and Water Authority (DEWA):

  • Apartments/Offices: AED 2,000 refundable deposit + AED 100 reconnection charge + AED 30 knowledge/innovation fee.

  • Villas: AED 4,000 refundable deposit + AED 100 reconnection charge. These deposits are refundable once the property is sold.

  1. EMPOWER (District Cooling Services)**:

  • Apartments: AED 2,000 refundable security deposit + approximately AED 500 advance quarterly demand charges.

  • Offices: AED 4,000 refundable security deposit + approximately AED 500 advance quarterly demand charges.

  • For primary owners, an additional AED 2,000 connection fee + AED 1,000 admin fee is applicable.

  1. ISTA (for Citywalk):

  • Connection Fee: AED 200.

  • Refundable Security Deposit: AED 1,500 for studios and one-bedroom apartments, AED 2,000 for two-bedroom apartments, AED 3,000 for three-bedroom apartments, and AED 3,500 for four-bedroom apartments.


Additional Costs for Buyers

  1. Agency Fee:

  • Typically 2% of the property’s selling price, payable to the real estate broker.

  1. Sales Progression Fee:

  • AED 2,500 for cash purchases.

  • AED 4,000 for financed purchases.

  1. Mortgage Registration Fee:

  • 0.25% of the loan amount plus AED 290, payable to the DLD if the buyer is financing the purchase.

  1. Refundable Security Deposit:

  • Varies by developer and is usually a percentage of the property price.


Costs Often Paid by the Seller

  1. Sales Progression Fee:

  • AED 2,500 for cash sales.

  • AED 4,000 for financed sales.

  1. Mortgage Discharge Fee:

  • AED 1,290 for mortgages with commercial banks.

  • AED 1,560 for mortgages with Islamic banks.

  1. Property Blocking Fee:

  • AED 1,520, applicable when the seller is financing the property.

  1. Trustee Fees:

  • AED 300 for property blocking and releasing the seller's mortgage.


For the most accurate and up-to-date information, visit the Dubai Land Department website.




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