Cost of Buying Property in Dubai – Complete 2025 Buyer’s Guide

Dubai has transformed into one of the most attractive property markets in the world, drawing attention from high-net-worth individuals, global investors, expatriates, and professionals seeking a cosmopolitan lifestyle. With a tax-friendly environment, robust infrastructure, and world-class developments, the city offers exceptional opportunities for both investment and personal use.

However, when people think about the cost of buying property in Dubai , they often only consider the purchase price. In reality, there are several other costs involved — from government fees to maintenance charges — that should be factored into your budget before making a commitment. This guide will give you a complete breakdown so you can plan with confidence.

1. Understanding Property Prices in Dubai

Property prices in Dubai vary widely depending on location, property type, and development stage (off-plan or ready-to-move-in).

General price trends in 2025:

Studio apartments : AED 500,000 – AED 900,000
1-bedroom apartments : AED 800,000 – AED 1.8 million
2-bedroom apartments : AED 1.5 million – AED 3 million
Townhouses : AED 1.5 million – AED 5 million+
Luxury villas : AED 3 million – AED 50 million+ in areas like Palm Jumeirah, Emirates Hills, and Dubai Hills Estate

Premium off-plan communities such as Lazord by Lapis Phases 1 and 2 are currently attracting strong demand due to their modern designs, prime locations, and high investment potential. These projects offer flexible payment plans, which make them appealing to investors looking to secure property before prices appreciate further.

2. Dubai Land Department (DLD) Transfer Fee

The Dubai Land Department charges a transfer fee of 4% of the property purchase price. This is a mandatory cost for all property buyers and must be paid before the title deed can be issued in your name.

Example:
If you purchase a property for AED 1,500,000, the DLD fee would be:

AED 1,500,000 × 4% = AED 60,000

On top of this, there’s a small administrative fee of approximately AED 580.

3. Real Estate Agent Commission

Most real estate transactions in Dubai involve an agent. The standard agent commission is 2% of the purchase price , plus 5% VAT on the commission amount.

For example, on a property worth AED 2 million:

Commission = AED 40,000
VAT on commission (5%) = AED 2,000
Total agent fee = AED 42,000

4. Mortgage Registration Fees (If You’re Financing)

If you’re taking a mortgage, the DLD charges 0.25% of the loan amount , plus AED 290 as an administrative fee for registering the mortgage.

For instance, if your loan is AED 1 million:
0.25% of AED 1,000,000 = AED 2,500 + AED 290 admin charge.

5. Bank Processing & Valuation Fees

Banks charge a mortgage processing fee that ranges between 0.5% – 1% of the loan amount. Additionally, they require a professional valuation of the property , which costs between AED 2,500 and AED 3,500.

These are usually non-refundable, even if the purchase doesn’t go through.

6. Service Charges & Maintenance Fees

In Dubai’s freehold communities, property owners pay annual service charges to cover maintenance of shared facilities, landscaping, security, and amenities.

Service charges are calculated per square foot and vary by community.
For high-end communities with luxury facilities, rates can be AED 25–50/sq.ft.
For mid-range communities, rates might be AED 15–25/sq.ft.

Example:
If you own a 1,200 sq.ft. apartment in a community with a rate of AED 20/sq.ft., your annual service fee will be:

1,200 × 20 = AED 24,000 per year.

7. Utility Deposits & Connection Charges

When moving into your new property, you’ll need to register with the Dubai Electricity and Water Authority (DEWA). The standard security deposit is:

Apartments : AED 2,000
Villas : AED 4,000

There are also small activation fees for water and electricity services.

8. Furnishing & Fit-Out Costs

If you buy an unfurnished property, you may need to budget for interior design, furnishing, and appliances. Depending on your style and preferences, this could range from AED 50,000 for basic furnishing to several hundred thousand dirhams for high-end interiors.

9. Home Insurance

While not mandatory, home insurance is highly recommended to protect your investment from unforeseen damage or loss. Annual premiums can start from AED 500 and go up depending on coverage.

10. Additional Costs for Off-Plan Properties

If you’re purchasing an off-plan property, you may need to pay:

Oqood registration fee : 4% of purchase price (similar to DLD fee)
Post-handover service charges once the property is ready
Developer’s admin fees for paperwork and processing

Why Dubai Remains a Top Property Investment Destination

Even with these additional costs, Dubai remains a global investment hotspot because:

No annual property tax and no capital gains tax
Strong rental yields (6–9% in key areas)
Long-term residency visas for investors
Transparent and investor-friendly property laws
Ongoing infrastructure growth, including new transport links and entertainment hubs

Tips to Reduce Costs When Buying Property in Dubai

Negotiate Agent Commissions – While 2% is standard, some agents may offer a reduced rate for high-value purchases.
Choose Off-Plan with Flexible Payments – Many developers offer 0% commission and waived DLD fees on selected projects.
Compare Mortgage Offers – Different banks offer varying rates and processing fees.
Buy in Emerging Communities – Areas slightly away from the city centre can offer lower prices and higher growth potential.

Final Thoughts

The cost of buying property in Dubai includes more than just the purchase price. Transfer fees, commissions, service charges, and other expenses must be planned for in advance to avoid any surprises. Whether you’re looking for a dream home or a high-yield investment, doing your homework will ensure a smooth purchase experience.

At Invesca Real Estate , we specialise in helping investors and buyers make informed decisions in Dubai’s competitive property market. Our team will guide you through each step, from selecting the right property to completing the transaction efficiently and securely.

If you’re ready to explore premium opportunities, get in touch with our experts and start your Dubai property journey today.