The advertised price of a Dubai apartment or villa is rarely the amount you actually need in the bank. On top of the purchase price, buyers face a stack of government fees, registration charges, and professional commissions that routinely add 7% to 8% to the total cost. On a AED 1.5 million property that is well over AED 100,000 in additional cash — money that cannot be borrowed and must be paid up front. This guide itemises every cost so you can budget accurately before you fall in love with a listing.
DLD transfer fee (4%)
The largest single cost after the property price is the Dubai Land Department (DLD) transfer fee, set at 4% of the purchase price. Officially the fee is split evenly between buyer and seller, but in practice the market convention in Dubai is that the buyer pays the full 4%. On a AED 1.5 million property this is AED 60,000. It is payable at the point of transfer and cannot be added to your mortgage — it must come from your own funds.
Trustee office fee
Property transfers in Dubai are completed at a registration trustee office rather than directly at the DLD. The trustee charges a fixed administrative fee: AED 4,000 (plus 5% VAT) for properties priced above AED 500,000, and AED 2,000 for properties at or below that threshold. This is a flat charge regardless of how expensive the property is, so it is a larger proportion of the cost on cheaper units.
Agent commission (typically 2%)
If you buy through a real estate agent — which is the norm in Dubai’s secondary market — the standard commission is 2% of the purchase price plus 5% VAT on that commission. On a AED 1.5 million property that is AED 30,000 plus AED 1,500 VAT. This fee is negotiable in a soft market, and on some off-plan purchases directly from a developer there is no agent commission at all.
Mortgage registration fee (0.25% of loan)
If you finance the purchase with a mortgage, the DLD charges a mortgage registration fee of 0.25% of the loan amount, plus a fixed administrative charge of AED 290. On a AED 1.2 million mortgage that is AED 3,000 plus AED 290. Cash buyers avoid this fee entirely, which is one of the small hidden advantages of buying without finance.
Property valuation fee
Banks require an independent valuation of the property before approving a mortgage, and the cost falls on the buyer. Valuation fees typically range from AED 2,500 to AED 3,500 plus VAT, depending on the property type and the bank. This is a mandatory step for financed purchases and again does not apply to cash buyers.
Oqood fee for off-plan (4%)
For off-plan property purchased directly from a developer, the DLD registration is handled through the Oqood system, and the registration fee is again 4% of the purchase price. Some developers run promotions in which they absorb part or all of the DLD fee as an incentive, so it is always worth confirming who bears this cost before signing. On completion, an off-plan unit is transferred to a standard title deed.
Total cost worked example: AED 1.5M property, cash vs mortgage
Consider a AED 1,500,000 ready apartment bought through an agent. A cash buyer pays: DLD transfer AED 60,000, trustee AED 4,200 (incl. VAT), agent commission AED 31,500 (incl. VAT), and no mortgage-related fees. Total additional cost: around AED 95,700 — roughly 6.4% on top of the price, for a grand total of about AED 1,595,700.
A mortgage buyer putting down 20% (AED 300,000 deposit, AED 1,200,000 loan) pays all of the above plus the mortgage registration fee of AED 3,290 and a valuation fee of about AED 3,150 (incl. VAT). Their total additional fees rise to roughly AED 102,140. Crucially, none of these fees can be financed — the mortgage covers only the property itself — so the cash a financed buyer needs on day one is the AED 300,000 deposit plus around AED 102,000 in fees, or about AED 402,000. Budgeting for fees is where many first-time buyers get caught short.
LTV limits by buyer type (CBUAE rules)
How much you can borrow — and therefore how large a deposit you need — is set by the Central Bank of the UAE (CBUAE) through loan-to-value (LTV) caps. These determine the minimum cash deposit for any financed purchase.
- Expat residents: up to 80% LTV on a first property below AED 5 million (minimum 20% deposit); 70% above AED 5 million.
- UAE nationals: up to 85% LTV below AED 5 million (minimum 15% deposit); 75% above AED 5 million.
- Non-residents: typically capped at around 50–65% LTV, so a much larger deposit is required.
- Second and subsequent properties carry lower LTV caps regardless of buyer type.
Because the deposit is by far the biggest cash item, the LTV cap effectively sets the price of home you can afford. An expat with AED 400,000 in savings can, in principle, buy a property of around AED 1.5 million at 80% LTV once fees are accounted for — but only if the DBR (debt burden ratio) rules also allow the monthly repayment. Use the Calcureal mortgage calculator to model the deposit, monthly payment, and Dubai fees together before committing.