Buying & Legal

What Are the Total Costs?

Plan for 7–10% on top of the headline price for a Dubai property purchase: DLD transfer fee 4%, agency commission 2% + VAT, plus developer NOC, trustee/registration, conveyancer and (if applicable) mortgage processing fees of around 1%.

Key investment metrics

The numbers that matter most for this question — at a glance.

Yield5–9%
Property Tax0%
Entry Budget+7–10% fees
Holding Period3–7 yrs

Why Dubai Works

  • All transaction costs are transparent and one-off — no annual property tax
  • No tiered stamp-duty escalator like the UK SDLT regime
  • No inheritance tax on UAE-situated assets for individual owners

Comparison

CostAmountNotes
DLD transfer fee4% of pricePaid by buyer typically
Agency fee2% + VATNegotiable on multi-unit
NOC (developer)AED 500–5,000For resale clearance
Trustee / registrationAED 4,000Standard
ConveyancerAED 5,000–10,000Optional but recommended
[[slug:mortgage-for-foreigners|Mortgage processing]]~1% of loanIf financing

Who Should Invest

  • Buyers budgeting net of all transaction and ongoing costs
  • Cash buyers benefiting from lower friction and faster closing

Risks to Watch

  • Underbudgeting fees compresses early-year returns by 2–3%
  • Service charges are recurring and can rise — verify Mollak history annually

Strategy

  • Budget 10% on top of the price for a comfortable buffer on closing day
  • Negotiate agency fees on multi-unit deals — 2% is a starting point, not a floor

FAQ

Any annual property tax?

No personal property tax in Dubai. Annual costs are limited to service charges (typically AED 10–25 per square foot for apartments, lower for villas), municipality fees on rentals (5% of annual rent paid via DEWA), and any mortgage interest.

Are any costs negotiable?

Yes. Agency fees (2%) are often negotiable on multi-unit deals or off-plan brokerage. Some developers absorb DLD fees as a marketing incentive on launches. Conveyancer fees are negotiable on portfolio transactions.

What is the cost of holding annually?

Annual holding costs are limited to service charges (AED 10–25/sqft for apartments), 5% municipality fee on rent (only if rented), DEWA, district cooling consumption, and any mortgage interest. There is no annual property tax.