District Intelligence content is indicative only and does not constitute investment advice. Consult a licensed District Real Estate advisor before making any property decision.
The total cost of buying property in Dubai is approximately 7–8% of the purchase price on top of the property cost itself. On a AED 2,000,000 apartment you should budget an additional AED 140,000–160,000 in transaction costs before you take ownership.
The Complete Cost Breakdown
Dubai Land Department (DLD) Transfer Fee — 4% The DLD charges 4% of the agreed purchase price on every property transfer. This is the single largest transaction cost. On AED 2M that is AED 80,000. The fee is split equally between buyer and seller by convention, though legally it falls to the buyer unless the contract states otherwise.
Agent Commission — 2% Standard buyer agent commission in Dubai is 2% of purchase price, paid to the buyer's broker at transfer. Sellers also typically pay 2% to their agent separately. On AED 2M the buyer pays AED 40,000.
DLD Admin Fee — AED 4,200 A fixed administrative fee charged by the DLD on top of the 4% transfer fee. Covers registration, title deed issuance, and trustee office charges.
Mortgage Registration Fee — 0.25% (if financing) If you take a mortgage, the bank charges a mortgage registration fee of 0.25% of the loan value to the DLD. On a AED 1.5M loan that is AED 3,750. Most banks also charge a processing fee of AED 2,500–5,000.
NOC Fee — AED 500–5,000 The seller's developer charges a No Objection Certificate fee confirming no outstanding service charges. Paid by the seller but negotiable in price negotiations.
Total Cost Summary
| Cost | Amount (AED 2M purchase) |
|---|---|
| DLD transfer fee 4% | AED 80,000 |
| Agent commission 2% | AED 40,000 |
| DLD admin fee | AED 4,200 |
| Mortgage registration 0.25% | AED 3,750 (if financed) |
| Total | ~AED 128,000 (6.4%) |
Abu Dhabi Comparison
Abu Dhabi charges 2% ADM registration fee (half Dubai's rate) plus 2% agent commission. Total transaction costs in Abu Dhabi are typically 4–5% versus 6–8% in Dubai — a material difference on larger purchases.
DRE Advisory Note
Always negotiate whether the DLD fee is shared. In a buyer's market, sellers often absorb a portion. On off-plan purchases bought directly from developers, the DLD 4% is typically included in the developer's package — confirm before signing.
Property in the UAE is governed by the official authorities below. Requirements and thresholds can change — always confirm current rules with the relevant authority before transacting.
- Dubai Land Department (DLD)The government authority that registers property ownership and transactions in Dubai.
- Real Estate Regulatory Agency (RERA)The regulatory arm of the Dubai Land Department, overseeing brokers, developers and escrow accounts.
- Dubai RESTThe Dubai Land Department’s official app for title deeds, transactions and property services.
- DARIThe Dubai Land Department’s official platform for real estate data, registration and services.
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