Hidden Costs When Buying Property in Dubai
April 10, 2025

Hidden Costs When Buying Property in Dubai

Buying real estate in Dubai offers incredible opportunities—no property tax, world-class infrastructure, and high rental yields. But beyond the listing price, there are hidden costs that many first-time buyers overlook. Understanding these expenses is crucial for budgeting correctly and avoiding surprises during the property transaction.

1. Dubai Land Department (DLD) Fees

The Dubai Land Department charges a 4% transfer fee based on the purchase price of the property. This amount must be paid at the time of transfer and is one of the largest upfront costs. In many cases, buyers also pay a DLD admin fee of around AED 540.

2. Agency Commission

If you’re working with a real estate broker, expect to pay a 2% commission (plus 5% VAT) on the property price. While some developers offer commission-free direct sales, working with an agent provides access to off-market deals and expert advice.

3. Developer Fees and NOC Charges

No Objection Certificate (NOC) Fee

When buying a secondary property, the seller needs to get an NOC from the developer, allowing the transfer to go through. This can cost anywhere from AED 500 to AED 5,000, depending on the developer.

Developer Registration Fees

Some developers may charge registration or service setup fees, especially in off-plan projects. These should be clarified before signing any agreements.

4. Service Charges and Maintenance Fees

Annual service charges cover the upkeep of shared facilities like pools, security, and landscaping. These can range from AED 10 to AED 30 per square foot depending on the development. Always confirm the annual service fee rate before purchasing.

5. Mortgage-Related Costs (If Financing)

If you’re not buying in cash, there are added costs like:

  • Bank processing fee (0.5–1% of loan amount)

  • Valuation fee (around AED 2,500–3,500)

  • Mortgage registration fee (0.25% of loan + AED 290)

Budget Smart with Valorisimo

At Valorisimo, we guide investors through every detail of the purchasing process including full transparency on hidden costs. We believe smart investing starts with knowing the true cost of ownership. Whether you’re buying your first home or expanding your portfolio, our team ensures a smooth and informed transaction.

Have questions about your next real estate investment? Contact us today to get personalized insights and expert advice tailored to your goals https://valorisimo.com/