How Much Does It Cost to Buy Property in Dubai

Updated September 2026

Beyond the purchase price, budget roughly 6% to 8% of the property value in one-off buying costs. The big one is the Dubai Land Department (DLD) transfer fee at 4%. On top of that you have agency commission, registration and trustee fees, and, if you are financing, mortgage costs. There is no annual property tax in Dubai, so the heavy costs are at the point of purchase, not every year after.

What are the buying costs, line by line?

That covers a straightforward cash purchase. Add mortgage costs below if you are financing.

Do I pay agency commission as a buyer?

Yes. In Dubai the buyer typically pays the agency commission, standard at 2% of the purchase price plus VAT. This is different from some markets where the seller carries it. On an AED 2 million property that is AED 40,000 plus VAT, so factor it in from the start.

What does it cost if you buy with a mortgage?

Financing adds a few more line items:

• Mortgage registration: 0.25% of the loan amount + AED 290, paid to the DLD.
• Bank arrangement fee: usually around 1% of the loan.
• Property valuation: roughly AED 2,500 to 3,500.

As a rough rule, a mortgaged purchase pushes your total upfront costs toward the 7% to 8% end of the range rather than 6%.

What are the ongoing costs after you buy?

The recurring cost that matters is the service charge, billed per square foot per year and set by the building. It ranges widely, roughly AED 10 to AED 30+ per sqft depending on the tower and its amenities. On a 1,000 sqft apartment that is AED 10,000 to 30,000 a year. Ask for the current service charge on the specific building before you buy, because it directly eats into your net yield. There is no council tax and no annual property tax on top of it.