Key Points in 15 Seconds
- Budget 7-10% of property value for fees (on top of down payment)
- DLD Transfer Fee: 4% of property value (Dubai)
- Mortgage Processing: Up to 1% of loan amount
- Request complete fee schedule before signing any mortgage agreement
Understanding UAE Property Purchase Costs
When buying property in UAE, your down payment is just one part of the upfront costs. Various fees are charged by the government, banks, and service providers. Understanding these costs helps you budget accurately.
Budget Tip: For a AED 2,000,000 property, expect to pay approximately AED 140,000-200,000 in fees and charges on top of your down payment.
Government Fees (Dubai)
DLD Transfer Fee
Paid when transferring property ownership
Usually split 2% buyer + 2% seller (negotiable)
DLD Admin Fee
Fixed administrative charge
AED 430 for land/villas
Mortgage Registration Fee
For registering mortgage with DLD
Of the loan amount + AED 290 admin
Bank & Mortgage Fees
Processing Fee
Mortgage application processing
Of loan amount (some banks offer waivers)
Property Valuation
Professional property assessment
May vary for high-value properties
Life Insurance
Required by most banks
Based on age, health, and loan amount
Property Insurance
Building/contents coverage
Annual premium based on property value
Service Provider Fees
Real Estate Agent Fee
Commission to buyer's agent
Of property value (negotiable)
Conveyancing/Legal
Legal review and documentation
Optional but recommended
NOC from Developer
No Objection Certificate
Varies by developer
Ongoing & Future Fees
Early Settlement Fee
If paying off mortgage early
Max 3% or 1%
Rate Switch Fee
Changing from fixed to variable or vice versa
AED 1,000-3,000
Partial Prepayment Fee
For making extra payments
Often free up to 25%/year
Annual Service Charges
Building maintenance (paid to developer)
AED 10-25 per sq ft
Example: AED 2,000,000 Property (Expat Buyer)
| Down Payment (25%) | AED 500,000 |
| DLD Transfer Fee (4%) | AED 80,000 |
| Real Estate Agent (2%) | AED 40,000 |
| Mortgage Processing (1%) | AED 15,000 |
| Mortgage Registration | AED 4,040 |
| Valuation & Admin | AED 3,500 |
| NOC & Other | AED 5,000 |
| Total Upfront Cost | AED 647,540 |
* This is an estimate. Actual costs may vary based on negotiations, bank offers, and specific circumstances.
Compare All Fees Upfront
Get transparent fee breakdowns from 18+ UAE banks. Know exactly what you'll pay before you commit.
Related Resources
Frequently Asked Questions
What is the total cost of buying property in UAE?
What is the DLD transfer fee in Dubai?
How much is the mortgage processing fee?
What is early settlement fee in UAE?
Are there any hidden fees in UAE mortgages?
This content is not financial advice. Please consult a licensed financial advisor before making borrowing decisions.
LeoCompare may receive referral commissions from partnered financial institutions. This does not influence the information presented.
Reviewed by the LeoCompare Editorial Team – specialists in UAE home financing content.
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