Dubai continues to attract investors from around the world in 2025, thanks to its strong rental yields, tax advantages, and world-class infrastructure. Whether you're buying a luxury apartment in Downtown Dubai, a waterfront unit in Dubai Marina, or a villa on Palm Jumeirah, one thing remains constant: the purchase price is not the final amount you’ll pay.

Many first-time buyers and overseas investors focus only on the listing price. However, several additional fees and charges can increase your total cost by 7% to 10%, sometimes more if you’re using financing.

This 2025 updated guide breaks down all the hidden costs you need to budget for before buying property in Dubai.

1. Dubai Land Department (DLD) Transfer Fee – 4%

The largest mandatory cost when purchasing property in Dubai is the transfer fee paid to the Dubai Land Department (DLD).

What you pay:

• 4% of the purchase price
• Administrative fees (typically a few thousand dirhams)

This fee applies to both cash and mortgaged purchases and must be paid at the time of transfer.

Example:

If you purchase a property for AED 2,000,000, the DLD fee alone will be AED 80,000.

There is no way to avoid this cost. In some cases, developers may offer limited-time promotions covering the DLD fee for off-plan projects, but this is not standard practice.

2. Real Estate Agency Commission – Typically 2%

If you are buying a property on the secondary market (resale), you will usually pay a real estate brokerage commission.

Typical cost:

• 2% of the purchase price
• 5% VAT on the commission

Always confirm the agreed commission in writing before signing the Memorandum of Understanding (Form F).

For off-plan properties purchased directly from developers such as Emaar Properties or DAMAC Properties, buyers typically do not pay brokerage fees, as the developer covers agent commissions.

3. Trustee Office Fees

Property transfers must be completed at an authorized trustee office approved by the Dubai Land Department.

Standard trustee fees (2025):

• AED 4,000 for properties above AED 500,000
• AED 2,000 for properties below AED 500,000
• 5% VAT

These fees are mandatory and are paid during the ownership transfer process.

4. Mortgage-Related Costs (If Financing)

If you’re financing your property purchase, several additional charges apply.

Common mortgage costs include:

• Bank arrangement fee: 0.5%–1% of the loan amount
• Mortgage registration fee: 0.25% of the loan amount (paid to DLD)
• Property valuation fee: AED 2,500–3,500
• Bank processing/admin fees

Major lenders in the UAE include Emirates NBD and Dubai Islamic Bank, though fees vary slightly between institutions.

If you're buying with a mortgage, your upfront costs will be higher compared to a cash buyer.

5. Service Charges (Annual Ongoing Expense)

Service charges are often underestimated by investors focused only on capital appreciation.

These annual fees cover:

• Building maintenance
• Security
• Cleaning
• Landscaping
• Shared facilities (gym, pool, concierge)

Charges are calculated per square foot and vary significantly depending on the building and location.

Luxury developments in areas like Downtown Dubai or Palm Jumeirah typically have higher service charges due to premium amenities.

Always request the current service charge rate before finalizing your purchase, as this directly affects rental yield and ROI.

6. Developer Fees (For Off-Plan Purchases)

When buying off-plan property, the payment structure differs from resale transactions.

Additional costs may include:

• Oqood registration fee: 4% of property value
• Administrative fees
• Handover fees upon completion
• Snagging inspection (optional but recommended)

Developers sometimes advertise “zero DLD fee” promotions, but always clarify what is included in the offer.

7. Utility Connection Charges

After transfer, you must activate utilities through the Dubai Electricity and Water Authority (DEWA).

Typical costs include:

• Refundable security deposit
• Activation fee
• District cooling deposit (if applicable)
• Internet and telecom setup

These costs are relatively small compared to transfer fees but should still be factored into your moving budget.

8. Property Insurance

If you are taking a mortgage, property insurance is usually mandatory. Even for cash buyers, it is highly recommended.

Costs vary depending on:

• Property size
• Location
• Coverage level

While not a major upfront expense, insurance protects your investment from unforeseen damage.

9. Maintenance and Renovation Costs

If you are purchasing a resale property, you may need to budget for:

• Minor repairs
• Painting
• Appliance replacements
• Interior upgrades

Older buildings may require higher maintenance budgets, which can impact rental returns.

Estimated Total Additional Costs in 2025

Here is a simplified estimate for a mortgaged purchase:

Total Estimated Extra Costs: 7%–10% of purchase price

Cash buyers can expect slightly lower overall additional costs.

Final Thoughts

Dubai remains one of the most investor-friendly property markets globally in 2025. However, understanding the true cost of acquisition is essential for accurate financial planning.

Before signing any agreement:

• Request a full cost breakdown
• Confirm service charges
• Review mortgage terms carefully
• Keep a contingency budget

By planning ahead, you can avoid surprises and make a confident, well-informed investment decision in Dubai’s thriving real estate market.