One of the most common mistakes first-time Dubai buyers make is underestimating the total purchase cost. The headline 4% DLD fee is just the start. Here is every cost line, so your financial model reflects reality.
1. Dubai Land Department (DLD) Transfer Fee — 4%
This is the primary government transfer tax, paid to the DLD at completion. It is calculated on the higher of the purchase price or the DLD-assessed value. On a AED 2,000,000 property this is AED 80,000. There is no negotiation on this — it is fixed by law.
2. Real Estate Agent Commission — 2%
In Dubai, the buyer pays the agent commission, not the seller (unlike most Western markets). The standard rate is 2% of the purchase price. This is typically split between the buyer's and seller's agent. On a AED 2M property: AED 40,000.
3. Title Deed Registration Fee — AED 4,000
A flat fee paid to the DLD at the time of title deed issuance. Fixed regardless of property value.
4. Mortgage Registration Fee — 0.25% of Loan (if applicable)
If you are buying with a mortgage, the mortgage must be registered with the DLD. The fee is 0.25% of the loan amount, plus AED 290 admin. On a AED 1.4M loan (70% LTV on a AED 2M property), this is AED 3,790.
5. Valuation Fee (for mortgaged buyers) — AED 2,500–3,500
Banks require an independent property valuation before approving a mortgage. This is paid by the buyer directly to the approved valuation company.
6. No Objection Certificate (NOC) — AED 500–5,000
When you purchase in a development, the developer must issue a No Objection Certificate confirming there are no outstanding service charges or liabilities on the unit. The fee varies by developer and is paid by the buyer. Typically AED 500–2,000 for ready properties.
7. Property Insurance — 0.1–0.15% per year
Mandatory for mortgaged properties, recommended for cash purchases. Annual building insurance on a AED 2M apartment is typically AED 2,000–3,000/year.
Total Cost Summary
On a AED 2,000,000 cash purchase with agent: DLD AED 80,000 + agent AED 40,000 + title deed AED 4,000 + NOC AED 1,500 = AED 125,500 (6.3% of purchase price). For mortgaged buyers, add mortgage registration and valuation fees: approximately AED 6,500 additional. Our calculator defaults to 6.5% purchase costs and lets you adjust the slider to match your specific deal.
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