What is the 4% DLD fee on Dubai property?

The Dubai Land Department (DLD) charges a 4% transfer fee on the agreed purchase price of any property transaction. This fee is paid by the buyer (by convention in Dubai — unlike some markets where it's split). For a AED 1,500,000 property: the DLD fee is AED 60,000. This fee has remained at 4% since 2013 and there are no changes announced for 2026.

Can DLD fees and transaction costs be paid with a mortgage?

No. From 2026, banks in UAE cannot finance transaction costs (DLD fee, agent commission, admin fees). These must be paid in cash. This is an important change that catches some first-time buyers off guard. On a AED 1,500,000 property, you need approximately AED 105,000–150,000 in cash just for transaction costs — before the down payment.

Are there ongoing taxes on Dubai property?

There is no annual property tax in Dubai. Ongoing costs are: service charges (AED 10–50 per sqft per year depending on building — charged by the building management for maintenance, security, and facilities), Ejari registration fee (approximately AED 220/year if renting out), DEWA connection charges (utility deposits), and any mortgage repayments. The absence of annual property tax is a key reason Dubai attracts international property investors.

What are service charges in Dubai and how much are they?

Service charges (maintenance fees) are annual fees paid by the property owner to cover communal maintenance, security, cleaning, and facilities management. The Dubai Land Department sets maximum service charge rates. Typical ranges in 2026: studios/apartments in standard buildings: AED 10–20/sqft/year; mid-range buildings: AED 20–35/sqft/year; luxury buildings (Marina, Downtown): AED 35–50/sqft/year. For a 1,000 sqft apartment at AED 25/sqft: AED 25,000/year in service charges.

How Much Does It Cost to Buy Property in Dubai in 2026? Full Breakdown

Key Takeaways

1The largest cost: DLD transfer fee of 4% of the purchase price — paid by buyer, non-negotiable

2Agent commission: 2% of purchase price (buyer and seller each pay their own agent)

3Total transaction costs (cash purchase): approximately 7–8% of purchase price

4Total transaction costs (mortgage purchase): approximately 7.5–10% of purchase price

5Ongoing ownership costs: service charges (AED 10–50/sqft/year depending on building) — factor these into yield calculations

Quick Answer: Budget 7–10% above the purchase price for all Dubai property transaction costs. The biggest cost: 4% DLD transfer fee. Plus 2% agent commission, admin fees (AED ~5,000), and mortgage registration if applicable. Example: AED 2,000,000 property → approximately AED 140,000–200,000 in transaction costs on top of the price.

Complete cost breakdown — cash purchase

Cost Item	Amount	Who Pays
DLD Transfer Fee	4% of purchase price	Buyer
Agent Commission	2% of purchase price	Buyer (own agent)
DLD Admin Fee	AED 580 (ready) / AED 40 (off-plan)	Buyer
Trustee Office Fee	AED 4,200 (over AED 500K)	Buyer
Title Deed Fee	AED 250	Buyer
Map Fee	AED 250	Buyer
Developer NOC Fee	AED 500–5,000	Seller (passed to buyer sometimes)
Total (cash)	≈ 7–8% of purchase price

Additional costs for mortgage buyers

Cost Item	Amount
Mortgage Registration Fee	0.25% of loan amount + AED 290
Bank Arrangement Fee	1% of loan amount (typical)
Property Valuation Fee	AED 2,500–3,500
Home Insurance	AED 1,000–3,000/year
Total (with mortgage)	≈ 8.5–10% of purchase price

Real cost example: AED 1,500,000 apartment

Purchase price: AED 1,500,000
DLD transfer fee (4%): AED 60,000
Agent commission (2%): AED 30,000
Admin + trustee + title fees: approximately AED 5,000
Total upfront (cash): AED 1,595,000
With 80% mortgage (20% down): down payment AED 300,000 + AED 95,000 in fees = AED 395,000 cash required

Ongoing ownership costs

After purchase, annual ongoing costs to factor into yield calculations:

Service charges: AED 10,000–35,000/year for a typical apartment (AED 10–35/sqft)
Ejari registration: AED 220/year (mandatory to legally rent your property)
RERA landlord registration: Free but required
Property management fee (if using an agent): 5–8% of annual rent
Maintenance and repairs: Budget 1% of property value per year

No annual property tax in Dubai — a significant advantage over most global real estate markets.

Important 2026 rule: transaction costs cannot be mortgaged

UAE banks cannot add transaction costs to your mortgage. DLD fees, agent commission, and admin fees must all be paid from your own cash at the time of purchase. This is a critical point for first-time buyers to understand — you need the down payment PLUS the transaction costs in cash simultaneously.

📌 Key Takeaways

4% DLD fee is the biggest cost — AED 60,000 on a AED 1.5M property
Total transaction costs: 7–8% cash, 8.5–10% with mortgage
Transaction costs CANNOT be financed by mortgage — must be cash
No annual property tax in Dubai
Service charges (AED 10–50/sqft/year) reduce effective rental yield — include in calculations

How Much Does It Cost to Buy Property in Dubai in 2026? Full Breakdown

Key Takeaways

Complete cost breakdown — cash purchase

Additional costs for mortgage buyers

Real cost example: AED 1,500,000 apartment

Ongoing ownership costs

Important 2026 rule: transaction costs cannot be mortgaged

Frequently Asked Questions

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