Buying a property in Dubai can be one of the most exciting decisions you’ll make. Whether it’s your first home or an investment property, the city offers strong returns, modern communities, and a stable real estate market. But many buyers focus so much on the property price that they overlook the hidden costs involved in the transaction. These additional expenses can significantly impact your budget and overall return on investment if you’re not prepared.
At QBH Properties, we believe transparency is key. That’s why we educate our clients about every part of the buying process, including the costs that don’t always appear in the listing. In this guide, we break down the most common hidden charges to expect when purchasing property in Dubai.
1. Dubai Land Department (DLD) Fee
Every property sale in Dubai requires registration with the Dubai Land Department. The DLD charges a fee of 4 percent of the property value, which is usually paid by the buyer. For example, if you purchase a property worth AED 1 million, you’ll need to pay AED 40,000 as a registration fee. This amount is paid upfront at the time of transfer and must be factored into your total purchase budget.
2. Admin Fees and Trustee Office Charges
Apart from the DLD fee, there’s also a small administrative cost to process the transaction. This includes the issuance of the title deed and service charges from the trustee office. Title deed issuance usually costs AED 580, while trustee office fees can range between AED 2,000 and AED 5,000 depending on whether the property is ready or off-plan. These fees may seem small in comparison, but they do add up and are mandatory for completing the transaction.
3. Agency Commission
If you’re buying a property through a real estate agent or brokerage, you’ll also need to pay a commission. The standard agency fee in Dubai is 2 percent of the property value, although some agencies charge slightly more or less depending on the property type. For a property priced at AED 1 million, you should expect to pay around AED 20,000 to your agent upon successful closing. It’s always best to confirm the exact percentage with your agent before proceeding.
4. Mortgage-Related Costs
If you’re financing your property purchase through a bank, there are additional fees to consider. Most banks charge a mortgage arrangement fee of 1 percent of the loan amount. You’ll also need to pay for a property valuation, which typically costs AED 2,500 to AED 3,500. In some cases, banks also require mortgage protection insurance, which adds to the total cost. These charges are payable even before your mortgage is approved, so they need to be planned early in the process.
5. Oqood Fee (For Off-Plan Purchases)
If you’re buying an off-plan property, there’s a government registration fee known as the Oqood fee. This is charged at 4 percent of the property value and is paid to the Dubai Land Department to register the sale. It’s similar to the DLD fee for ready properties but applies specifically to off-plan transactions. Many developers include this cost in the payment plan, but it’s important to confirm and not assume it’s covered.
6. Service Charges and Maintenance Fees
Once you’ve bought your property, you’ll need to pay annual service charges to the building or community management. These fees cover common area maintenance, security, landscaping, and amenities like gyms or pools. Service charges in Dubai typically range from AED 10 to AED 30 per square foot per year, depending on the type and location of the property. Before you buy, always ask for the estimated service charges so you can calculate your total cost of ownership.
7. Moving Costs and Furnishing Expenses
Many buyers overlook the cost of moving in and setting up their new property. If the unit is unfurnished, you’ll need to factor in furniture, appliances, curtains, and possibly even upgrades or renovations. Moving services, DEWA activation fees, internet setup, and cooling deposits can also add a few thousand dirhams to your initial outlay. These are not official property buying costs, but they are real expenses that affect your total budget.
8. Property Management Fees (For Investors)
If you’re buying the property as an investment and plan to rent it out, you may choose to hire a property management company. These services typically charge between 5 to 10 percent of the annual rental income. In return, they handle tenant screening, rent collection, maintenance, and legal matters. While optional, property management is useful for overseas investors or busy professionals who want hassle-free ownership.
Final Thoughts
Understanding the hidden costs of buying property in Dubai can help you make better financial decisions. While the city offers excellent investment opportunities, smart buyers look beyond just the listing price. By calculating fees like DLD charges, agency commission, mortgage setup costs, and annual service fees, you’ll avoid surprises and stay within your budget. At QBH Properties, we make sure our clients are fully informed at every stage of the purchase process. Whether you’re buying a ready apartment, a luxury villa, or an off-plan investment, our team is here to guide you with honest advice, full cost breakdowns, and complete market transparency. Looking to make your next move? Contact us today to explore the best property deals in Dubai with no hidden surprises.