Everyone is going crazy about buying property or investing in real estate in Dubai. For investors across the GCC, especially from Saudi Arabia, Dubai offers tax-free returns, stable governance, and growing demand for both rental as well as residential properties.
But here is the catch: the listed property price is just the beginning.
Hidden costs like legal fees, government levies, and long-term maintenance obligations of buying property in Dubai can pile up easily. Without a clear understanding of these costs, even seasoned investors might end up overspending or miscalculating ROI.
This guide gives you all the key Dubai real estate expenses, including service changes, property purchase fees in Dubai, etc., so you can make smart and cost-effective decisions.
7 Hidden Costs of Buying Property in Dubai
Following is the expert-curated list of hidden costs that every investor must be aware of if they plan to buy real estate assets in Dubai.
1. Dubai Land Department Charges
Every property transaction must be registered with the Dubai Land Department (DLD), fees inclusive of:
- Transfer Fee: 4% of the property value
- Admin/Title Deed Fees: AED 540–4,000 based on property value
These are non-negotiable, government-mandated charges and typically paid upfront by the buyer. If you’re investing AED 2 million, that’s AED 80,000 in transfer fees alone.
2. Agency Commission
If you are buying through a broker, you need to pay 2% commission on the property value + 5% VAT on that fee. For a unit worth AED 1.5 million, that’s AED 31,500, due at signing.
Tip: Choose RERA-registered agents to ensure legitimacy and full transparency.
3. Legal, Conveyancing & Mortgage Costs
- Legal and Conveyancing Fees
To make sure you receive a clean title transfer and contract accuracy, you will likely hire a conveyancer or property lawyer. These fees range from AED 6,000 to AED 10,000, depending on complexity.
- Mortgage-related Fees
If you’re the one financing the purchase:
- Mortgage Arrangement Fee: ~1% of the loan amount
- Mortgage Registration (DLD): 0.25% of loan + AED 290
- Valuation Fee: AED 2,500–3,500
- Bank Admin Fees: ~AED 1,000–2,000
- Life Insurance (mandatory): Often added as an annual cost
These costs can amount to AED 20,000+ for an average mortgage deal in Dubai.
4. Developer Fees: NOCs and Admin Charges
- NOC Charges
If you’re buying a resale or off-plan property, most of the developers in Dubai charge a No Objection Certificate (NOC) fee to approve the ownership transfer. This varies from AED 500 to AED 5,000 based on the expertise, reputation and experience of the builder.
- Off-plan admin costs
Some off-plan projects need administrative transfer or registration fees. These are often minimal but must be confirmed before the sale to avoid last-minute chaos.
5. Service Charges in Dubai Property
This is where long-term ownership gets expensive, mainly in high-end communities.
Service charges in Dubai are charged per square foot (AED 10–30+ annually), and cover:
- Security, cleaning, and elevators
- Landscaping and pool maintenance
- Gym facilities and concierge services
- Parking upkeep, hallway lighting, etc.
Example: A 1,200 sq. ft. apartment in Downtown Dubai at AED 22/sq. ft. = AED 26,400 per year.
Always request the latest service charge certificate from the seller or developer before you buy.
6. Utilities & Setup Costs
Setting up water, electricity, and communications adds to your upfront cost:
- DEWA Deposit: AED 2,000 (apartment), AED 4,000 (villa)
- AC Setup (Empower/Tabreed): AED 1,000–2,500
- Etisalat/Du Activation: AED 300–1,500
- Move-In/Inspection Fees: Some communities charge AED 300–1,000.
If buying a villa or townhouse, you may also need to account for pest control, garden upkeep, and CCTV installations.
7. Currency Conversion Costs
As a Saudi investor, the AED–SAR exchange rates slightly impact your final payment. While the currencies are pegged, international transfer charges, currency spreads, and bank fees (0.5%–1%) can inflate your total cost.
Use a regulated currency exchange platform or multi-currency account to save on these transactions.
Off-Plan vs Ready Property: Hidden Cost Differences
| Expense Type | Off-Plan Property | Ready Property |
| DLD Transfer Fees | Sometimes discounted (2–4%) | Full 4% typically |
| Service Charges | Not applicable until handover | Immediately payable |
| Maintenance Reserves | Often paid upfront post-handover | Already factored into ongoing charges |
| Financing Fees | Lower initially, rises near handover | Paid on full property value upfront |
| Legal/Conveyancing | May vary with developer policies | Usually standard and fixed |
Off-plan buyers must prepare for rising costs closer to handover. Ready property buyers see these costs up front, but can earn rental income immediately.
Why It Matters
While Dubai is one of the most investor-friendly markets globally, neglecting these charges can eat into your ROI. It’s the difference between a 7% yield and a 5% yield, especially if you’re planning to flip or lease quickly.
If you’re investing from Saudi Arabia or any GCC country, including these costs with your buying strategy is crucial, be it for short-term rentals, family living, or capital appreciation.
Conclusion
These 7 hidden costs of buying property in Dubai don’t always come highlighted in the listing package, but they make an impact on your investment returns for sure. From property registration fees in Dubai to service charges, Dubai property owners pay throughout the year, making it important to know the full expense blueprint before making a purchase.
If you’re planning your next investment, don’t just estimate; calculate smartly with us.
Connect with Prime Bullions’ team, which has expertise in curating personalized cost forecasts and listings tailored to your goals.
Clarity now = confidence later.