Hidden Costs of Buying Property in Dubai: What You Actually Pay

Buying real estate in Dubai seems simple — no annual property tax, no capital gains tax, no income tax on rental income. But beneath the surface, there’s a range of hidden property ownership costs that many buyers don’t calculate in advance.

If you’re considering investing in Dubai real estate, this guide will help you understand the full cost of owning property in Dubai — beyond the sale price.

Dubai Land Department (DLD) Fees: 4% + Admin

Every real estate transaction in Dubai includes a mandatory fee to the Dubai Land Department (DLD):

1. 4% of the property value (mandatory)
2. AED 580 administrative fee for title deed issuance

Some developers may offer promotions that cover these fees — but in most cases, they’re paid by the buyer. Always ask if the DLD fee is included in the price you see.

Real Estate Agency Commission in Dubai

When buying through an agent — which is common even in off-plan sales — expect to pay:

1. 2% of the purchase price as commission
2. 5% VAT on top of the commission

Even when buying from a developer, agents are often involved in securing units, negotiating payment plans, or accessing early launches.

Mortgage Fees in Dubai (If Financing)

If you’re financing your property with a mortgage, factor in the following:

1. 0.25% mortgage registration fee (on the loan amount)
2. AED 290 administrative fee
3. 1% bank processing fee
4. AED 2,500–3,500 valuation fee, depending on the bank

These apply even with pre-approval. Don’t forget to calculate them into your investment model.

Annual Service Charges: The Recurring Cost

All property owners in Dubai pay annual service charges, which cover cleaning, security, landscaping, elevator maintenance, and communal area upkeep.

Typical ranges:

1. Standard apartments: AED 10–15/sqft/year
2. Branded or beachfront residences: AED 25–35/sqft/year

Example: For a 1,200 sqft luxury apartment, expect over AED 30,000 per year — which directly affects net rental yield.

Utility Setup: DEWA and District Cooling

To connect electricity and water via DEWA, you’ll need:

1. AED 2,000 deposit for apartments
2. AED 4,000 deposit for villas
3. AED 110 non-refundable activation fee

Cooling (A/C) is often provided separately via district cooling providers like Empower. Summer bills can be high — always check how cooling is managed before you buy.

NOC Fees: Resale Property Transfers

If you’re buying resale property, you must obtain a No Objection Certificate (NOC) from the original developer to complete the ownership transfer.

NOC costs:

1. Typically AED 500–5,000 depending on the developer, building, or brand

Some premium towers charge higher fees to maintain brand standards.

Property Management and Furnishing

If you plan to rent out your unit — especially short-term — you’ll need either:

1. A licensed property management company (charging 5–20% of rental income)
2. Or freelance support for guest check-ins, cleaning, and maintenance

Also factor in:

1. AED 25,000–40,000 for standard mid-range furniture packages (if unfurnished)

FAQ: Real Costs of Dubai Property Ownership

Is there property tax in Dubai?

No annual property tax. However, there are upfront and ongoing fees like DLD, service charges, and NOC.

How much are DLD fees in Dubai?

4% of the property value, plus AED 580 for administration.

What are average service charges in Dubai?

From AED 10 to AED 35 per sqft annually, depending on property type and amenities.

Can I buy property in Dubai without an agent?

Technically yes, but most transactions — even with developers — involve agents.

Know Before You Buy

Owning property in Dubai remains one of the most tax-efficient ways to invest in international real estate. But the real cost of property ownership includes far more than just the purchase price.

Whether you’re looking to buy a second home, a rental unit, or an off-plan investment, it’s essential to understand:

1. Transaction fees
2. Recurring service charges
3. Utility deposits
4. Transfer-related costs
5. Management and furnishing expenses

Ready to Invest in Dubai — with Clarity?

At Kalinka Ecosystem, we break down the numbers for you — so you know exactly what you’re buying, how much it will cost, and what returns you can expect.

→ Get in touch for:

1. Detailed cost breakdowns
2. Access to properties with optimized rental yields
3. Full support from legal check to key handover

Invest smarter — with all the numbers on your side.