What it costs to buy property in Dubai, before the keys are yours.
Every one-off cost, the deposit each residency needs, and a worked example of the cash you have to put on the table. Based on the rates banks and the DLD apply in 2026.
Allow about 7% of the price in one-off costs, on top of your deposit. The 4% DLD transfer fee is most of it. Agency, registration and, if you borrow, the mortgage charges make up the rest. None of it can be added to the loan, so it all has to be sitting in your account on transfer day.
In short
One-off buying costs come to about 7% of the price. On a AED 1.5 million purchase that is roughly AED 102,000, and it is separate from the deposit.
The 4% DLD transfer fee is the largest single line. The buyer pays it in full on transfer day.
Your deposit depends on residency: about 20% for a resident expat, 15% for a UAE national, and 40% or more for a non-resident.
If you borrow, the bank applies two limits, the loan-to-value cap and a 50% debt burden ratio on your monthly income. Whichever is tighter decides the loan.
Fees are never financed. The cash you need is the deposit plus the full 7%, in place before you sign.
The one-off costs of buying
Dubai has no annual property tax and nothing like British stamp duty. What it does have is a fixed set of transaction fees, and they add up to more than most first-time buyers expect. Below is the full list for a AED 1.5 million apartment bought with a mortgage, so nothing at the trustee office comes as a surprise.
| Cost | Rate | AED |
|---|---|---|
| DLD transfer fee | 4% of price | 60,000 |
| Agency commission | 2% + VAT | 31,500 |
| Registration trustee fee | AED 4,000 + VAT | 4,200 |
| Mortgage registration | 0.25% of loan + 290 | 3,290 |
| Bank valuation | AED 3,000 + VAT | 3,150 |
| Title deed issuance | Flat | 580 |
| Total one-off costs | About 6.85% | 102,720 |
Rates current at June 2026. DLD transfer 4% of price; registration trustee AED 4,000 plus 5% VAT for properties above AED 500,000; agency 2% plus VAT; mortgage registration 0.25% of the loan plus AED 290; bank valuation AED 3,000 plus VAT. Mortgage lines assume an 80% loan of AED 1,200,000.
If you buy in cash, two of those lines go away: mortgage registration and the bank valuation. Without them the one-off costs fall to about AED 96,280, or 6.4% of the price. The other five are payable however you fund the purchase. The DLD fee alone is AED 60,000 here, and it is the reason the usual advice is to keep 7% aside.
How much you can borrow
A Dubai bank sizes your loan with two caps. The first is loan-to-value, set by the UAE Central Bank according to your residency and the price. The second is the debt burden ratio: your total monthly repayments may not exceed 50% of your monthly income. The bank lends you the lower of the two figures.
| Buyer | Up to AED 5M | Above AED 5M |
|---|---|---|
| UAE national | 85% | 75% |
| Resident expat | 80% | 70% |
| Non-resident | About 60% | About 60% |
UAE Central Bank mortgage caps for a first residential property. Non-resident caps are set by individual banks and commonly land near 60%. The minimum deposit is the difference from 100%.
A resident expat buying the AED 1.5 million apartment above can borrow up to 80%, which is AED 1.2 million, and needs AED 300,000 down. If the monthly payment on that loan would take them past 50% of their income, the bank lends less and the deposit rises to make up the difference. It is worth running both limits before you settle on a price.
Your deposit, and the monthly.
20% of the price. Residents need at least 20% down.
On a AED 1,600,000 loan over 25 years at 4.25%.
Your down payment clears the 80% loan cap. The 4% DLD fee and other closing costs sit on top, paid from cash rather than financed.
The cash you need on the day
Most buyers budget for the deposit and forget the fees. On the AED 1.5 million apartment with an 80% mortgage, the cash you need at completion is the deposit plus every line in the ledger above.
| Line | AED |
|---|---|
| Deposit (20% of price) | 300,000 |
| One-off buying costs | 102,720 |
| Total cash to transact | 402,720 |
Deposit at 20% of price. One-off costs from the ledger above. Excludes the first service charge invoice and moving or furnishing costs.
The fees add 34% to the deposit in this example. The monthly payment is easy to plan for, and the calculator above works it out in a moment. The lump sum the bank will not lend against is what catches people, so have it ready before you make an offer rather than after.
Before you commit
Get the pre-approval first.
A mortgage pre-approval tells you your ceiling under both the loan-to-value cap and the 50% debt burden ratio, and it fixes your rate window. Without one you are negotiating on a price the bank may not fund.
Keep the 7% as cash, not equity.
The DLD fee, agency and registration are due in cash on transfer day and are never added to the loan. Set them aside separately from the deposit, so a tight completion does not leave you short.
Read the service charge before you sign.
The first Mollak invoice arrives soon after handover, and the rate is set per building. A high-charge tower changes the arithmetic of the whole purchase, so compare the per-square-foot rate with similar buildings first.
Price the exit as well as the entry.
Selling later has its own costs, mostly the 2% agency fee and any mortgage release. The property has to appreciate past both the buying and the selling costs before you are ahead. Know that break-even figure before you buy.
Rates and caps current at June 2026 and indicative. Bank lending terms vary by applicant and lender; the DLD and your bank confirm the exact figures for your purchase. Not financial advice.
Questions
- How much are the fees to buy a property in Dubai?
- Allow around 7% of the price in one-off costs. The largest is the DLD transfer fee at 4% of the price. Then there is agency at 2% plus VAT, a registration trustee fee of about AED 4,200, the AED 580 title deed and, if you take a mortgage, registration at 0.25% of the loan plus a bank valuation of about AED 3,150. On a AED 1.5 million purchase the total comes to roughly AED 102,000, or 6.85%.
- How much deposit do I need to buy in Dubai?
- It depends on your residency. A resident expat needs at least 20% down on a first home up to AED 5 million, and 30% above that. A UAE national needs around 15%. A non-resident buying from overseas usually needs at least 40%, though each bank sets its own figure. The deposit is separate from the fees, which come to roughly 7% and which banks do not add to the loan.
- Is the 4% DLD fee split between buyer and seller?
- People often describe it as shared, but in practice the buyer pays the full 4% transfer fee to the Dubai Land Department on the day of transfer. It is calculated on the sale price, and it is the single biggest line in your buying costs.
- What is the debt burden ratio in Dubai?
- UAE banks cap your total monthly loan repayments at 50% of your monthly income. That is the debt burden ratio. The mortgage payment, plus any car loan, credit card minimums and other instalments, has to fit inside that half. Together with the loan-to-value cap, it decides how much a bank will lend you.
- Do I pay these costs again on an off-plan purchase?
- The structure is similar, the timing is different. Off-plan buyers also pay a 4% DLD registration fee, known as the Oqood fee, usually at booking, and the agency and registration steps run through the developer's process. The same rule applies: keep the fees aside in cash, because they are not financed.
- Dubai mortgage calculatorMonthly payment, deposit, and the loan each residency allows.
- The real cost of owning in DubaiWhat the property costs every year once it is yours, with ranges to budget.
- Rental yield in Dubai: the owner's guideWhether the rent covers the mortgage and the holding costs, area by area.
- What it costs to sell in DubaiThe other side of the trade, so you know your break-even before you buy.
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- Housing fee calculator
Mulki keeps what each unit cost you next to what it is worth today.
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