Buying costs
Buying costs in Dubai: DLD fees and every other charge explained
What it really costs to buy a home in Dubai with a mortgage: the 4% DLD fee, registration, agency, valuation and bank fees, with a worked example.
Key takeaways
- On top of your deposit, budget roughly 7% of the price for fees and charges.
- The Dubai Land Department transfer fee of 4% is the largest single cost.
- Some banks waive their arrangement fee, which can lower the total.
The short answer
When you buy a home in Dubai with a mortgage, you need your deposit plus a set of one-off costs. For most buyers those costs add up to around 7% of the purchase price, so they deserve a line in your budget from day one.
Here is what each charge is for and roughly what it costs. Exact amounts vary with the price, the loan, the bank and the agent, so treat these as typical figures.
The costs, one by one
| Cost | Typical amount | Paid to |
|---|---|---|
| DLD transfer fee | 4% of the price, plus an admin fee | Dubai Land Department |
| Mortgage registration | 0.25% of the loan, plus AED 290 | Dubai Land Department |
| Agency commission | Usually 2% of the price, plus VAT | Real estate agent |
| Property valuation | About AED 2,500 to 3,500, plus VAT | Bank-approved valuer |
| Bank arrangement fee | Up to 1% of the loan, plus VAT (sometimes waived) | Your bank |
| Trustee office fee | About AED 2,000 to 4,000, plus VAT | Registration trustee |
You’ll also need life insurance and property insurance, which banks require for the length of the mortgage. These are usually paid monthly or yearly rather than up front.
Worked example: a AED 1.5 million apartment
A UAE resident buys a first home for AED 1,500,000 with an 80% mortgage of AED 1,200,000. The deposit is AED 300,000. The one-off costs look roughly like this:
| Cost | Amount (AED) |
|---|---|
| DLD transfer fee (4%) | 60,000 |
| Mortgage registration (0.25% + 290) | 3,290 |
| Agency commission (2% + VAT) | 31,500 |
| Valuation (incl. VAT) | about 3,150 |
| Bank arrangement fee (1% + VAT) | up to 12,600 |
| Trustee fee (incl. VAT) | about 4,200 |
| Total | about 102,000 to 115,000 |
So alongside the AED 300,000 deposit, this buyer should plan for roughly AED 400,000 to 415,000 in total. If the bank waives its arrangement fee, the costs come down to about 6.8% of the price.
Ways to keep costs down
- Compare banks on total cost, not just the rate: some waive the arrangement fee or offer cash-back.
- Check whether the developer is covering any fees on new or off-plan projects.
- Get pre-approved first, so you don’t pay for valuations on homes you can’t finance.
An adviser can show you the full cost of each bank’s offer side by side. Check what you could borrow or read about residential mortgages.
Figures are typical for UAE mortgages and are for general information only. Your offer depends on your profile and the lending bank.
