The hidden cost of buying property in Dubai

Check out the costs and fees associated with buying a property in dubai

Revealing the Hidden Costs of Buying an Apartment in Dubai


If you’re considering purchasing an apartment in Dubai, it’s crucial to understand the full spectrum of expenses involved. By uncovering the often overlooked costs, you can make well-informed decisions and plan your budget effectively. In this blog post, we will shed light on the hidden charges associated with buying a property in Dubai, providing you with the insights you need to navigate the process confidently.

Government Fees:

When buying a property in Dubai, the Dubai Land Department (DLD) imposes various fees that are not included in the net selling price. These fees are as follows:

Fees Amount
Transfer Fees 4% of the selling price + AED 580 (apartment/office/villa), AED 430 (land), AED 40 (off-plan)
Mortgage Registration Fee 0.25% of the loan amount + AED 290 (if finance buyer)
Registration Trustee Appointment Fee AED 4,000 (through title deed), AED 5,000 (through off-plan)

Property Developers’ Costs:

Property developers in Dubai also have certain charges that should be considered:

Fees Amount
No Objection Certificate (NOC) Fee AED 500 to AED 5,000 (varies based on the developer)
Cash Guarantee Deposit 10% of the selling price

Utility Fees:

After the property transfer, there are utility fees that need to be accounted for:

Fees Amount
DEWA Fees Apartment/Office: AED 2,000 refundable deposit + AED 100 reconnection charge + AED 30 knowledge/innovation fee, Villa: AED 4,000 refundable deposit + AED 100 reconnection charge
EMPOWER Fees Apartment: AED 2,000 refundable security deposit + roughly AED 500 advance quarterly demand charges, Office: AED 4,000 refundable security deposit + roughly AED 500 advance quarterly demand charges

Additional Fees:

Other fees associated with property transfer include:

Fees Amount
Agency Fee 2% of the selling price (may vary based on the agreement)
Sales Progression Fee AED 2,500 (if cash sale), AED 4,000 (if finance sale)
Trustee Fees AED 4,000 (if selling price is more than AED 500,000), AED 2,000 (if selling price is less than AED 500,000)
Mortgage Discharge Fee AED 1,290 (if commercial bank), AED 1,560 (if Islamic Bank)


Buying an apartment in Dubai involves more than just the purchase price. By understanding and accounting for the hidden costs, you can make informed financial decisions and avoid any surprises along the way. Remember to factor in government fees, property developers’ charges, utility fees, and additional costs associated with property transfer. The table provided in this blog post serves as a comprehensive guide to help you navigate the true cost of buying an apartment in Dubai.

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Don’t let the hidden costs catch you off guard. Plan your budget wisely and embark on your apartment-buying journey with confidence.

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