The listing price is only part of what you pay for a home in Dubai. Before you get the keys there is a down payment, a 4% government fee, registration charges, usually an agent, and the bank's own fees. None of those extras can be borrowed, so they all come out of your savings.
The short answer
For a typical expat buying a ready home with a mortgage, plan for about 27% to 28% of the price in cash: a 20% down payment plus 7% to 8% in fees. Cash buyers pay the full price plus around 6.5%. Buying off-plan directly from a developer usually brings the fees down to about 4%.
Total Buying Cost Calculator Enter your price and get the full cash figure, itemised.The down payment
The UAE Central Bank limits how much banks can lend against a home. Whatever the bank will not lend, you pay upfront. For most people that means:
| Buyer and property | Minimum down payment |
|---|---|
| Expat, first home under AED 5 million | 20% |
| Expat, first home AED 5 million or more | 35% |
| Expat, second home | 40% |
| UAE national, first home under AED 5 million | 20% |
| Off-plan (most banks) | 50% |
Watch the AED 5 million line. Going just over it raises the minimum deposit from 20% to 35%, so a slightly more expensive home can need a much bigger cheque.
DLD and registration fees
Every sale is registered with the Dubai Land Department. On a ready property you pay:
- Transfer fee: 4% of the price. This is the big one.
- Title deed and admin: about AED 520 (title deed, map, knowledge and innovation fees).
- Trustee office fee: AED 4,000 plus VAT for homes at AED 500,000 or more, AED 2,000 plus VAT below that.
- Mortgage registration: 0.25% of the loan plus AED 290, if you borrow.
On a AED 1.2 million apartment with a AED 960,000 loan, these come to AED 55,410.
DLD Transfer Fee Calculator See every DLD and trustee charge for your price.Agency commission
Most resale purchases go through a broker, who normally charges 2% of the price plus 5% VAT, so 2.1% in total. On AED 1.2 million that is AED 25,200. If you buy directly from a developer, there is usually no commission.
Bank fees
Banks charge a valuation fee, usually around AED 3,000 plus VAT, and an arrangement fee of up to 1% of the loan plus VAT. Arrangement fees are often reduced or waived during promotions, so always ask.
A full worked example
An expat buying a ready AED 1,200,000 apartment, 20% down, through an agent, with standard bank fees:
| Cost | Amount |
|---|---|
| Down payment (20%) | AED 240,000 |
| DLD transfer fee (4%) | AED 48,000 |
| Title deed and admin | AED 520 |
| Trustee office fee incl. VAT | AED 4,200 |
| Mortgage registration | AED 2,690 |
| Agency commission incl. VAT | AED 25,200 |
| Bank valuation and arrangement fee incl. VAT | AED 13,230 |
| Cash needed | AED 333,840 |
That is 27.8% of the price, even though the deposit is only 20%. The fees alone come to AED 93,840, and unlike the deposit, you do not get that money back as equity.
The same home for cash costs AED 1,277,920 in total. You skip the bank fees and mortgage registration, but still pay the DLD fee and commission.
Off-plan is cheaper upfront
Buying off-plan from a developer changes the picture. You still pay the 4% DLD fee, usually at booking, but there is normally no agent, no trustee office fee, and only a small Oqood admin charge. On a AED 1.2 million unit the fees are about AED 48,250, or 4% of the price, and the rest is spread over the developer's payment plan.
Off-Plan Payment Plan Calculator Turn a developer's payment plan into dates and amounts.How to bring the costs down
- Ask the bank to waive the arrangement fee. On a AED 960,000 loan that saves about AED 10,000.
- Negotiate the commission on higher-value deals, or buy direct from a developer.
- Watch for developer offers that cover part or all of the DLD fee.
- Put down more than 20% if you can. Mortgage registration and arrangement fees are based on the loan, so a smaller loan means smaller fees.
- Stay under AED 5 million if you are close to it, to keep the 20% deposit rule.
Whatever you decide, work out the full cash figure before you start viewing, not after you find the right home. It saves a lot of disappointment at the offer stage.
Questions people ask
How much cash do I need to buy a property in Dubai?
With a mortgage, most expats buying a first home under AED 5 million need the 20% down payment plus around 7% to 8% of the price in fees. On a AED 1.2 million apartment that is about AED 334,000.
Can I add the DLD fee to my mortgage?
No. UAE banks lend against the property price only. The 4% DLD fee, commission and bank charges all have to be paid from your own money.
Who pays the 4% DLD fee, the buyer or the seller?
It can legally be split, but in Dubai the buyer almost always pays all of it. Whatever you agree should be written into the MOU (Form F).
Are there yearly property taxes in Dubai?
There is no annual property tax for homeowners. You do pay yearly service charges to the building or community, and a 5% housing fee is added to DEWA bills for whoever lives in the home.
Is there VAT on buying a home?
Resale residential property is generally exempt from VAT, and the first sale of a new home is usually zero rated. VAT does apply to agency commission, trustee fees and bank fees, which is already included in the figures in this guide.
This guide explains general rules as of the date above. Fees and regulations change, so confirm the figures for your own purchase or tenancy with the Dubai Land Department, your bank or a registered broker.