When budgeting for a property purchase in Dubai, the cash down payment is only part of the equation. Purchasers must also account for approximately 6% to 7% of the purchase price in mandatory upfront transaction fees.
Itemised Breakdown of Dubai Purchasing Fees
| Fee Item | Standard Amount / Rate | Payable To |
|---|---|---|
| DLD Property Transfer Fee | 4% of property price + AED 580 admin | Dubai Land Department |
| Mortgage Registration Fee | 0.25% of loan amount + AED 290 admin | Dubai Land Department |
| Registration Trustee Fee | AED 2,000 + 5% VAT (<500k) or AED 4,000 + 5% VAT (≥500k) | DLD Trustee Office |
| Real Estate Broker Commission | 2% of property price + 5% VAT | Certified Agency |
| Property Valuation Fee | AED 2,500 – AED 3,500 + 5% VAT | Mortgage Lender |
| Bank Arrangement / Processing | Up to 1% of loan amount + 5% VAT (often capped) | Mortgage Lender |
Representative Example: AED 2,000,000 Ready Property
Assuming an 80% mortgage (AED 1,600,000 loan) on an AED 2,000,000 apartment:
- Down Payment (20%): AED 400,000
- DLD Transfer Fee (4% + 580): AED 80,580
- Mortgage Registration (0.25% + 290): AED 4,290
- Trustee Fee (+ VAT): AED 4,200
- Broker Commission (2% + VAT): AED 42,000
- Valuation Fee (+ VAT): AED 3,150
- Bank Processing Fee (~1% capped + VAT): ~AED 10,500
- Total Estimated Cash Outlay: ~AED 544,720