How Much Does It Cost to Buy a Property in Dubai?

When buying a property, one price is what you agree with the seller. The other costs of buying a property in Dubai include agent fees, registration fees, and title deed fees. So, overall, the buying cost is always 8% to 10% higher than the property cost.

The cost of buying a property in Dubai depends on lots of factors. The actual price of a property depends on the neighbourhood and property type. Meanwhile, other costs depend upon the property’s price. For instance, an agent’s commission is usually 2%, which will be higher if the property’s price is in the top-tier range.

Here, we’ll break down the full cost to buy a property in Dubai so you can make a calculated decision within your budget.

• Actual Property Price
• Additional Costs of Buying a Property in Dubai
• DLD Transfer Fees
• Trustee Fees
• Mortgage Registration Fees
• Real Estate Agent Fees
• Utility Service Connection Fees
• Insurance Cost
• FAQs

Key Takeaways

• Buying a property costs 8-10% more than the actual price.
• DLD registration at the time of property transfer costs 4% of the property price.
• Trustee fees range from AED 2,000 to AED 4,000 depending on the property price.
• Mortgage registration cost is 0.25% of the mortgage value and a bank arrangement fee of 1% when you buy a property on mortgage.
• Add real estate agent fees of 2% to your budget as well.
• Other fees include utility connection fees and insurance costs.

Actual Property Price

The first cost is the actual price of a property for sale in Dubai. According to the DLD transactions for the last year, the average price per square foot is AED 1,906. 

So, whether you are looking for a studio or a 1-bedroom apartment for sale in Dubai, you can expect an average price accordingly. That said, prices vary by neighbourhood, amenities, facilities, and property type. 

You can even find a studio apartment for AED 500,000, or it can go up to millions of dirhams if you are looking for a bigger property or a popular neighbourhood. For instance,

• International City has an average price per square foot of AED 812
• On the other hand, Dubai Marina is one of the luxurious areas with an average price per square foot of AED 2,592

If you are looking to invest or buy a property in Dubai, you can submit a property purchase inquiry to explore options that match your preferences.

Additional Costs of Buying a Property in Dubai

When you are budgeting to buy a property in Dubai, add 8% to 10% to your budget. Here are all the additional costs that you must know before buying a property in Dubai.

DLD Transfer Fees

When you are transferring the property in Dubai, the DLD registration fee is 4% of the property price. Moreover, the title deed issuance fee is AED 250 plus AED 10 for the innovation fee and AED 10 for the knowledge fee.

Trustee Fees

Other property transfer fees include the following Trustee charges:

• AED 2,000 + 5% VAT for properties below AED 500,000
• AED 4,000 + 5% VAT for properties above AED 500,000

Mortgage Registration Fees

If you are buying a property on mortgage in Dubai, you have to pay mortgage registration fees to the DLD. It is 0.25% of the mortgage amount. Alongside, the following are the Service Partner fees:

• AED 4,000 + VAT for normal title deed
• AED 5,000 + VAT for Oqood (an interim registration for off-plan properties)

There is also a bank arrangement fee of 1% plus VAT. So, when you buy a property on mortgage, you must add these costs.

Real Estate Agent Fees

When you connect with a real estate agent to find a property, you will have to pay 2% of the property price as a real estate agent fee. Additionally, the agent fee will include the value-added tax (VAT). 

Utility Service Connection Fees

After you buy a property, you will need to have a Dubai Electricity and Water Authority (DEWA) registration. For DEWA connection, you need to pay a security deposit of AED 2,000 for flats and AED 4,000 for villas.

Insurance Cost

Homeowners have to pay 0.1% to 0.5% of their property value for insurance per year. This is an additional cost you will need while buying a property in Dubai. For example, the insurance cost of an AED 1 million flat can range from AED 1,000 to AED 5,000.

FAQs

These were all the details related to additional costs of buying a property in Dubai. These costs can amount to 8% to 10% more than the actual cost. So, when you are budgeting to buy any property, villas or apartments for sale in Dubai, you must calculate these additional costs.