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Keep In Mind Dubai Property Purchase Costs, DLD Service Charges & Extra Fees

DLD Service Charges, Dubai Property Purchase Costs, Oqood Fee, Dubai Property Tax

No income tax. No property capital gain tax. No rental income tax. No inheritance tax. Dubai can easily be recognized as one of the best cities for buying property. But here’s the truth. Dubai property purchase costs can get expensive. Between DLD Service Charges, Oqood fee, and repairs, those bills can add up. 

And don’t forget, there are associated costs that come with buying a property. Typically, it includes a 4% transfer fee, a few one-time registration fees, and VAT taxes, so be prepared to set aside 7%-8% additional to your property value.

Now, let’s count up all the costs.

Dubai Property Purchase Costs (Cash or Mortgage Buyer)

Dubai Land Department Transfer Fee4% of purchase fee + AED 580 administrative fee for apartment/office/villa, AED 430 for land
Oqood Fee (for off-plan properties)4% of purchase price + AED 40 administrative fee
+ AED 5,250 for Oqood Certificate
Property Registration FeesAED 2,000 + 5% VAT for property below AED 500,000
Property Registration Fees (cont.)AED 4,000 + 5% VAT for property above AED 500,000
Agency Commission Fee2% of purchase fee + 5% VAT
Conveyancing FeesAED 6,000 to AED 10,000
Home Inspection Fee AED 1 per sq. ft

Dubai Property Purchase Costs (with Mortgage Loan)

Dubai Land Department Mortgage Fee0.25% of loan + AED 290 fee
Bank Mortgage Arrange FeeUp to 1% of loan amount + 5% VAT
Valuation feeAED 1,850 to AED 3,500 + 5% VAT
Home Insurance0.03% – 0.06% of property value + 5% VAT (annual)
Mortgage Life Insurance0.01167% – 0.0245% of loan amount (monthly)
Bank Feesi.e. wire transfer & exchange rate fees

Homeowner Annual Costs / Upfront Deposits

Besides your mortgage payments (if any), here are other annual charges and deposits to factor in as a homeowner:

DLD Service ChargesCan range from AED 2 to AED 30 per s.ft per month depending on the area.
Chiller ChargeFor owner-occupied, check if chiller charge is included:
– If not, chiller charge will be billed separately
– If they are, it’s known as “chiller free”
Sinking Fund DepositsUp to 6 months of monthly Service Charges
DEWA Security DepositsAED 2,000 for apartment (Residential Premises)
AED 4,000 for villa (Residential Premises)
For non-residential premises, security deposit is calculated based on the premise’s consumption.
DEWA Activation ChargesAED 100 for connecting electricity and water (small meters)
AED 300 for connecting Electricity and water meters (large meters)
AED 10 for registration
AED 10 for knowledge fee
AED 10 for innovation fee
Home InsuranceStarting from AED 450 + 5% VAT
Mortgage Life InsuranceBased on Individual Profile

Have a property in mind? Use this handy mortgage calculator below. It calculates all the costs we covered in this article and customizes the service charge based on the size of your property.

Next: Best Websites To Find Properties in Dubai (Highest Traffic)

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