Breakdown
How it works
Dubai Land Department takes 4% plus AED 580 admin; a registration trustee charges AED 4,000 + VAT (AED 2,000 below AED 500,000); agents charge 2% + VAT; mortgage buyers also pay 0.25% + AED 290 to register the mortgage, up to 1% + VAT bank arrangement fee and AED 2,500–3,500 valuation. Conveyancing is optional but recommended at AED 5,000–10,000.
Formula
Worked example
AED 1.8m with an 80% mortgage: DLD 72,580 + trustee 4,200 + agent 37,800 + mortgage reg 3,890 + bank 18,270 + conveyancing 6,000 ≈ AED 142,700 (7.9%).
Frequently asked questions
Who pays the DLD fee?
By custom the buyer, though it is legally shared 2%/2%. Developers often pay it on off-plan launches as an incentive.
Can fees be financed?
Some banks add up to 5% of the price to the mortgage for fees, subject to affordability. Otherwise all fees are cash on the transfer day.
What about annual costs?
Service charges (AED 10–30 per sq ft), building insurance, and for owners the 0.5% municipality housing fee on rental value.