The Real Cost Of Buying Property In Dubai

Written by Unique Properties

An important thing to consider when buying real estate in Dubai or anywhere else for that matter is that you need to take into account the total acquisition cost (TCA). The TCA goes beyond the net purchase price of the property that you pay to the seller. While most buyers factor in the cost of the property when determining their budget, they are not aware of certain other types of fees and expenses involved in purchasing real estate in Dubai. If purchasing a property in the city has crossed your mind, in this detailed guide we will explain what these costs are and to what extent they can impact your budget.

You should not assume paying for the property is where it all ends. Have you considered other hidden charges or upfront costs that come with acquiring property in Dubai?

For you to understand the cost, you first need to know why buying property in Dubai is a worthy investment.

Why Purchase Property In Dubai?

Firstly, Dubai has made the conditions very favorable for those who wish to acquire property in the city. Real Estate Visas and other long term Visas are easy to access for potential investors. This creates an excellent opportunity for potential investors to live, work, and stay with their families in the UAE.

As far as luxury properties are concerned, Dubai is a great place to buy. This is because the prices associated with luxury properties in Dubai are significantly lesser than the costs in other popular cities around the world.

Affordability is a significant reason why you should consider buying property in Dubai, but that’s not all. Dubai has an extensive portfolio of properties for you to choose from, and these include beachfront villas, townhouses, premium apartments, and penthouses. Dubai has got it all.

Other reasons you should consider buying property in Dubai include –

– Fast-growing economy
– Outstanding infrastructure
– Wide variety of property options that suit different budgets
– The low crime rate in Dubai
– Healthy growing population
– Good returns on rent
– No property tax
– Dubai aims to be the happiest city in the world

With the reasons mentioned above, it seems Dubai is the place to invest in property. Still, you have to consider the actual cost of doing so.

What Is The Real Cost Of Buying Property In Dubai?

We’re glad you asked. Listed below are the different costs you should expect to incur in the process of buying property in Dubai.

Upfront Fees

As far as protecting buyers and sellers of property are concerned, Dubai boasts of robust and effective regulations. For this reason, there are certain upfront fees you will pay; this is separate from the cost of the property itself. Keep in mind that these upfront fees may differ depending on the nature of the property you’re purchasing.

Below is a breakdown of the upfront cost of buying property in Dubai.

Upfront Fees For Buying Ready Property In Dubai

If you’re buying ready property directly from the developer, then here are the compulsory fees you must pay to the DLD (Dubai Land Department)

– Dubai Land Department Fees – 4% of the value of the property
– Fees for issuing title deed – AED 520
– Administration fees payable to the DLD – AED 4,200

If you are paying for the property via a mortgage or home loan, then you will need to pay a Mortgage Registration Fee to the DLD, which is 0.25% of the total mortgage value + AED 290 administration fees.

Dubai has different types of mortgage plans available to investors. If you acquire the property with a full cash payment, then the DLD mortgage fees don’t apply.

Take note that the cost of purchasing property may increase if you pass through by a regular brokerage firm, they usually charge agency fees of 2% in addition to the prices we mentioned above. However, at Unique Properties we don’t charge any broker fees, since we have direct deal with all developers we deal with, and being one of their official channel partners we get the privilege to sell exactly at the same price plus often getting some units at cheaper prices or at an easier payment plan.

Upfront Fees For Buying Off-Plan Property In Dubai

Similar to ready property, there are quite a few things you should put into consideration when you’re buying Off-Plan property in Dubai. You can buy directly from a developer or the seller. The 4% DLD fees on the value of the property are payable in both cases.

On top of the DLD fees, the buyer must pay AED 5,250 to issue the Oqood Certificate. This is a certificate issued by RERA to ensure the Off-Plan property is registered under the buyer’s name. This step has to be completed once 25% of the payment for the property has been fulfilled by the buyer.

Service Charges

Besides the upfront fees, buyers should consider service charges when calculating the cost of buying property in Dubai. These are recurring fees that the homeowners have to pay for the maintenance of the building.

The service charges for buying apartments or villas in Dubai are charged on a square foot basis. This means the more substantial the property you own, the higher your service charges.

Dubai Electricity And Water Authority (DEWA) Fees

DEWA fees are sometimes forgotten by those who plan to buy property in Dubai. DEWA is the body that manages the electricity and water connections for all buildings in Dubai.

The cost of DEWA fees varies, depending on where you live and the nature of your property. This can range between few hundreds for apartments and slightly more for villas depending on the number of meters installed.


As one can see, several factors determine the real cost of buying property in Dubai. Depending on the situation, these costs could go higher or lower.
In summary, when you decide to purchase a property in Dubai, you have to consider the following and add them to the total cost.

These include –

– Upfront fees for buying a ready property and Off-Plan property
– Service charges (which vary according to the size of your property)
– Dubai Electricity And Water Authority (DEWA) fees

Taking all these into consideration, you can now determine the real cost of buying property in Dubai, If interested in purchasing your first investment property in Dubai, feel free to get in touch with one of our expert agents by clicking on “Book a meeting” button below or fill the Inquiry Form on this page.

Good luck!