Many buyers focus solely on the property’s listed price, but purchasing real estate in the UAE involves several additional expenses. Understanding these hidden costs is essential for accurate budgeting and a smooth transaction experience.

Dubai Land Department (DLD) Fees

One of the largest additional costs is the DLD fee, typically 4% of the property value, payable at the time of registration. This is a mandatory charge for all property transactions in Dubai.

Real Estate Agent Commission

Most real estate agents charge a 2% commission on the property sale price. Ensure this fee is clearly discussed and documented in advance.

Mortgage Registration and Processing Fees

For buyers using home financing, expect a 0.25% mortgage registration fee with the DLD, plus a mortgage processing fee from your bank, typically around 0.5% to 1% of the loan amount.

Service Charges and Maintenance Fees

Once you own the property, annual service charges are payable to cover building maintenance, security, landscaping, and shared facilities. Charges vary by property type, location, and community services.

Valuation and Legal Fees

Banks require property valuations before granting mortgages, with costs usually ranging between AED 2,500 to AED 3,500. Buyers should also budget for legal advice and document review services to safeguard their transaction.

Final Thoughts

Understanding these hidden expenses ensures you can budget realistically and avoid unexpected costs during your property purchase. Always request a complete cost breakdown from your broker or developer before proceeding.