He had AED 1.5 million earmarked for a two-bed in Dubai Marina with a sea view. He’d saved, the bank had agreed, and he was ready. Then came the transfer fee, commission, trustee fee, and mortgage registration.
If you’re thinking about whether to buy an Apartment in Dubai, work out the purchase cost before making an offer.
First, the Price You See Isn’t the Price You Pay
Dubai’s fees are published but aren’t usually included in listings.
The highest cost is the Dubai Land Department transfer fee, 4% of the property price. Although it can be split, the buyer usually pays it. There’s also the agent’s commission, typically 2% plus VAT, and the trustee office fee: AED 2,000 plus VAT under AED 500,000 and AED 4,000 plus VAT above that.
For that AED 1.5 million apartment, bought in cash:
| What | About |
| DLD transfer fee (4%) | AED 60,000 |
| Agency commission (2% + VAT) | AED 31,500 |
| Trustee fee (+ VAT) | AED 4,200 |
| DLD admin bits | around AED 580 |
| Extra on top | roughly AED 96,300 |
That’s around 6.5% extra. Keep 7 or 8% aside for DEWA, movers, and furniture.
If You’re Getting a Mortgage, Read This Bit Twice
Central Bank lending rules can limit your budget. Expats buying a first home at AED 5 million or under can borrow up to 80%; above AED 5 million, the limit is 70%. Monthly repayments, including car loans and credit cards, generally can’t exceed 50% of salary.
With an 80% loan, you’ll put down AED 300,000, plus around AED 96,300 in fees. Mortgage registration costs 0.25% of the loan plus AED 290 (about AED 3,290). The arrangement fee can reach 1% plus VAT (up to AED 12,600), and valuation costs are AED 2,500–3,500.
Your total cash requirement is around AED 415,000, not AED 300,000. Get pre-approved before viewing to understand your budget.
Off-Plan vs. Ready: The Price Might Match, the Cash Flow Won’t
With off-plan, you pay a 10 to 20% deposit, construction installments, and the balance at handover. Some developers offer post-handover plans.
The 4% DLD fee is usually due at registration through the Oqood system. Banks mostly won’t finance construction payments, so you’ll need your own savings. Projects can face delays, so plan for a later handover.
Developers must keep buyer payments in regulated escrow accounts, released as construction progresses. Check the project’s RERA registration before signing.
The Costs That Come Back Every Year
Service charges cover security, cleaning, pools, gyms, and lifts. They’re calculated per square foot and vary by building. Check rates in the RERA service charge index.
Budget for insurance, repairs, and property management too. Dubai rental yields often run 5 to 8% gross, but net returns after expenses and vacant months matter more.
Where Your Budget Actually Takes You
JVC, Arjan, and Dubai South offer lower entry prices and rental demand. Marina and Business Bay sit a step up, while Downtown and Palm Jumeirah are premium areas.
Check recent DLD transactions for the building to see what buyers paid. Compare its condition and ongoing costs.
Property worth AED 2 million or more can qualify for the 10-year Golden Visa, but don’t stretch your budget just for the visa.
Before You Book That First Viewing
The view from the 30th floor is nicer when you’re not panicking about the transfer fee.
Professor Property is a DLD-licensed agency working with first-time buyers and overseas investors, from the first budget chat to the title deed.
Visit the Professor Property website and book a consultation. Walk into that viewing knowing exactly what you can afford.
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