When purchasing real estate in Dubai, the advertised property price does not always reflect the total investment cost.

Both off-plan and ready (secondary market) properties involve additional mandatory and optional expenses that buyers should clearly understand before proceeding.

This guide outlines all key extra costs to help investors plan their budget accurately and avoid unexpected expenses.

OFF-PLAN PROPERTY – ADDITIONAL COSTS

1. Dubai Land Department (DLD) Fee

  • This fee equals 4% of the purchase price and is mandatory for property registration.
  • In some projects, developers may cover this fee as part of promotional offers.

2. Oqood Registration Fee

  • Oqood is the pre-title deed registration system for off-plan properties.
  • The fee usually ranges between AED 3,000 and AED 5,000, depending on the developer.

3. Developer / Administration Fee

  • Covers documentation, contract preparation, and administrative processing.
  • Typically ranges from AED 5,000 to AED 10,000.

4. Service Charges (Post-Handover)

  • Payable after property handover.
  • Calculated based on the unit’s size and paid annually.

5. DEWA & Cooling Deposits

  • Security deposits for electricity and water (DEWA).
  • If the building uses district cooling, an additional deposit is required for providers such as Empower or Tabreed.

6. Snagging Inspection – Optional

  • A professional inspection conducted before handover to identify defects.
  • Highly recommended, especially for investment properties.

READY (SECONDARY MARKET) PROPERTY – ADDITIONAL COSTS

1. Dubai Land Department (DLD) Fee

  • Charged at 4% of the purchase price and generally paid by the buyer.

2. Title Deed Registration Fee

  • The cost of issuing the title deed, usually ranging between AED 580 and AED 1,000.

3. Real Estate Agency Commission

  • Commonly 2% of the purchase price plus VAT.
  • Paid by the buyer in secondary market transactions.

4. NOC (No Objection Certificate)

  • Issued by the developer to confirm there are no outstanding liabilities.
  • The fee typically ranges from AED 5,000 to AED 10,000.

5. Service Charge Clearance

  • All outstanding service charges must be cleared before ownership transfer.

6. Mortgage-Related Costs (If Applicable)

  • Bank valuation fees,
  • Processing and administration fees,
  • Mortgage registration fees.

CONCLUSION

Focusing solely on the property price can be misleading when buying real estate in Dubai. Understanding all associated costs in advance is essential for accurate financial planning.

While off-plan properties offer flexible payment plans and long-term investment potential, ready properties provide immediate use and rental income.

In both cases, reviewing contracts carefully and seeking professional advice will help ensure a secure and successful investment.