Hidden Costs When Buying Property in Dubai (2025 Guide)
When buying property in Dubai, most buyers focus only on the purchase price. But there are important hidden costs that many people overlook — especially expats.
This guide breaks down all the extra expenses you need to know before investing in Dubai real estate in 2025.
1. Dubai Land Department (DLD) Transfer Fee
This is one of the biggest hidden costs.
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What it is: Government fee to transfer ownership
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How much: 4% of the purchase price
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Who pays: Typically the buyer
Example: If your property costs AED 1,000,000, the transfer fee will be AED 40,000.
2. Real Estate Agent Commission
Real estate brokers add value, but they charge a fee.
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Standard rate: 2% of the sale price
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When paid: At ownership transfer
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Important: Some agencies may charge admin fees too
Pro tip: Always confirm commission before signing anything.
3. Dubai Land Department Registration Fee
Aside from the 4% transfer fee, there’s also a small registration fee.
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How much: Usually AED 580–610
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What it covers: Official paperwork and title deed issuance
Although small compared to other costs, it’s still worth budgeting for.
5. Service Charges / Maintenance Fees
Every building or community in Dubai has annual service charges.
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What it is: Cost to maintain common areas
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Who pays: Property owner
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How much: Depends on location and size
Estimated range: AED 10 – AED 30+ per sqft per year
So for a 1,000 sqft apartment, service charges might be AED 10,000 – AED 30,000+ annually.
6. Community/Development Fees
Some areas have additional community charges managed by homeowners’ associations.
Areas like Palm Jumeirah and Dubai Marina often have extra fees for amenities and upgrades.
Always ask for the Service Charge Certificate before buying.
7. NOC Fee (No Objection Certificate)
Before selling, developers issue a No Objection Certificate.
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Who pays: Seller usually
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But sometimes it’s negotiated to be split
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Typical cost: AED 500 – AED 5,000+ depending on project
8. Developer / Project Fees
Some off-plan developers charge administrative or project fees that are not obvious upfront.
These might include:
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Release fees
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Registration fees
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Upgrade fees
Always read the payment plan carefully and ask for a full fee breakdown.
9. Utilities & Connection Fees
After buying, you need:
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DEWA connection (electricity & water)
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Chilled water setup
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Internet / TV subscription
Typical costs:
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DEWA deposit: ~ AED 2,000+
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Internet setup: AED 500 – AED 1,500
These are one-time setup charges most buyers forget.
10. Property Insurance
Mortgage lenders usually require:
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Home insurance
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Mortgage life insurance
Annual cost can range from 0.2% – 0.5% of property value depending on coverage.
11. Foreign Exchange / Transfer Fees
If sending funds from abroad, banks or transfer services will charge:
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Currency conversion fees
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Transfer processing fees
Using international transfer services like Wise or Remitly may reduce costs.
12. Early Payment Penalties
If your mortgage or payment plan has early repayment terms, check for penalties.
Some banks charge 2% – 5% of the remaining loan if you pay early.
13. Capital Gains Tax (If Applicable)
Dubai currently has no capital gains tax on real estate.
However, if you are a tax resident in another country (like India or UK), your local tax laws might apply when you sell. Always consult a tax advisor.
14. Property Valuation Fees
Banks require property valuation before approving a mortgage.
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Typical cost: AED 3,000 – AED 4,000+
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Some banks reimburse this, some don’t
