Dubai Real Estate Fees: A Simple Guide for Buyers and Renters

Dubai property transfers involve several fees paid to the Dubai Land Department (DLD) and associated parties. Here is exactly what to expect - and how to budget before you make an offer.

The 4% DLD Transfer Fee

This is the big one. The DLD charges 4% of the purchase price to register the transfer of ownership.

Convention vs law: Legally, the buyer pays the full 4%. By convention in Dubai, it is typically split 50/50 between buyer and seller - but this is negotiable. In a buyer’s market, sellers will sometimes absorb more; in a seller’s market, buyers often pay all 4%.

Example on AED 2,000,000 property:

• Full 4% = AED 80,000
• Buyer’s share (50/50 convention) = AED 40,000

Always clarify who pays the transfer fee in your MOU (Memorandum of Understanding) before signing.

DLD Admin Fee

A fixed administrative fee payable to the DLD:

• Properties valued up to AED 500,000: approximately AED 4,200
• Properties valued above AED 500,000: approximately AED 5,250

Note: These figures are subject to change. Always confirm current rates at dld.gov.ae before transfer day.

Mortgage Registration Fee

If you are purchasing with a mortgage, the DLD charges an additional fee to register the bank’s charge on the title:

• 0.25% of the loan amount + AED 290 admin fee

On an AED 1,600,000 mortgage (80% of AED 2M), this is AED 4,000 + AED 290 = AED 4,290.

Title Deed Issuance Fee

A nominal fee of AED 250 for the title deed document itself. Non-negotiable, paid at the trustee office.

Trustee Office Fee

Property transfers in Dubai take place at registered DLD trustee offices (not the DLD head office). The trustee charges a facilitation fee:

• Cash purchase: approximately AED 4,000
• Mortgage purchase: approximately AED 5,250

There are dozens of trustee offices across Dubai - your agent will book the appointment.

Real Estate Agent Commission

This is separate from DLD fees but is payable at or before transfer. In Dubai, the buyer typically pays the agent 2% commission. On AED 2M, that is AED 40,000.

Note: Commission rates are regulated by RERA, but 2% is the standard for the buyer’s side. Some agents representing both parties may charge differently - always clarify in advance.

Complete Fee Summary: AED 2,000,000 Cash Purchase

Cost Item	Amount
DLD Transfer Fee (buyer’s 50% share)	AED 40,000
DLD Admin Fee	AED 5,250
Title Deed Fee	AED 250
Trustee Office Fee	AED 4,000
Agent Commission (2%)	AED 40,000
Total	~AED 89,500 (4.5%)

If buyer pays full 4% DLD transfer fee: ~AED 129,500 (6.5%)

What to Budget

My rule of thumb: budget 6-7% of the purchase price on top for all transaction costs on a cash purchase, depending on how the transfer fee is split.

For mortgage purchases, add another 0.5-1% for mortgage arrangement, valuation, and registration fees - so 7-8% total.

This catches a lot of buyers off guard. If you fall in love with a property at the edge of your budget, make sure you account for fees on top. Do not be that buyer.

Always confirm exact amounts with your agent and the trustee office ahead of transfer day - you’ll need to prepare manager’s cheques in specific amounts made out to specific parties, and you cannot improvise this on the day.

Rental Fees

If you’re renting rather than buying, here are the key costs:

• Dubai Municipality Housing Fee: 5% of annual rent (added to your DEWA bill monthly)
• Ejari registration: Approximately AED 220 per year
• Security deposit: Typically 5% of annual rent (up to 10%)
• Agency fees: Approximately 5% of annual rent plus VAT

Buying property in Dubai comes with additional fees on top of the purchase price, but they are generally lower than in many other major cities. No stamp duty, no property tax, no capital gains tax - the main cost is the one-time 4% DLD transfer fee.

Questions about the numbers for a specific property? Send me a message and I’ll walk you through it.