Uncovering the True Cost of Buying Property in Dubai: Factors to Consider Beyond the Sale Price

1st May 2023market

There are a number of hidden costs that buyers need to be aware of when buying property in Dubai. These include:

  • Dubai Land Department (DLD) fees: The DLD charges a number of fees for buying property in Dubai, including a 4% transfer fee, a knowledge fee, and a mortgage registration fee.

  • Real estate agent fees: Buyers are typically required to pay a real estate agent fee of 2% of the purchase price.

  • Conveyance fee: This is a fee charged by the law firm that handles the property purchase. The fee is typically around AED 6,000 to AED 10,000.

  • Bank mortgage arrangement fee: If you are buying property with a mortgage, you will need to pay a fee to the bank for arranging the loan. This fee is typically around 1% of the loan amount.

  • Property valuation fee: A property valuation is required by most banks before they will approve a mortgage. The fee for a valuation is typically between AED 2,500 and AED 3,500.

  • Home and contents insurance: It is advisable to take out home and contents insurance when you buy property in Dubai. The cost of insurance will vary depending on the size and value of your property.

  • Life insurance: If you are buying property with a mortgage, you may be required to take out life insurance. This is to protect the bank in the event that you die before the mortgage is paid off. The cost of life insurance will vary depending on your age and health.


In addition to these hidden costs, there are also a number of other costs that buyers need to factor in when buying property in Dubai, such as stamp duty, legal fees, and furniture and furnishings. It is important to do your research and factor in all of these costs before you make an offer on a property.

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