The Hidden Cost of Buying a Property in Dubai

Property buyers must factor fees that are not included in the net selling price when purchasing property in Dubai.  The Dubai Land Department(DLD) has several costs that must be paid to purchase property in Dubai. Listed are government costs for buying a property.

•The Dubai Land Department charges 4% of the sales price as transfer fees plus a knowledge fee of AED 430 for a plot, AED 40 for off plan property and AED 580 for apartments and offices.

•The DLD requires a Mortgage Registration Fee of 0.25% of the loan amount including AED 290.

•A Registration Trustee Appointment fee must be paid in cash and cost AED 4,000 through title deed and 5,000 through off plan.

•Property developers in Dubai charge a No Objection Certificate fee(NOC). The NOC fee ranges from AED 500-5000 depending on the property developer. Developers might handover a property 5% smaller than the listed size. For example, a property listed at 1,000 sq.ft will be 950 sq.ft upon delivery. Property developers charge a cash guarantee deposit of 10% of the selling price.

The Dubai Electricity and Water Authority(DEWA) fees for newly transferred properties

Apartment/Office – AED 2,000 refundable deposit + AED 100 reconnection charge (may vary depending on the no. of installed meter) + AED 30 knowledge/innovation fee

Villa – AED 4,000 refundable deposit + AED 100 reconnection charge(may vary depending on the no. of installed meter)
* Security deposit is refundable once property is sold 

EMPOWER:

Apartment – AED 2,000 refundable security deposit + roughly AED 500 advance quarterly demand charges
Office – AED 4,000 refundable security deposit + roughly AED 500 advance quarterly demand charges
Note:
* For primary owner a connection fee of AED 2,000 + admin fee of AED 1,000 should be paid on top of the security deposit
* Security deposit is refundable once property is sold