The Full Cost of Buying Property in Dubai

The Dubai Land Department transfer fee is 4 percent of the purchase price, plus a small fixed administration fee. By custom the buyer pays it, though it is a matter for negotiation. The registration trustee charges AED 4,000 for a home priced at AED 500,000 or more, plus VAT, for handling the transfer.

On an off-plan purchase the same 4 percent applies at the initial registration with the Department, and the developer collects it with the first instalment.

The agency commission on a resale is 2 percent of the price plus 5 percent VAT, paid by the buyer. On a developer sale the developer pays the agency and the buyer pays no commission.

The developer of the community issues a no-objection certificate before a resale transfer, for a fee that varies by developer, commonly between AED 500 and AED 5,000, and confirms the service charges are settled.

A mortgage adds the Land Department's registration fee of 0.25 percent of the loan plus a fixed charge, the bank's valuation fee, and the bank's arrangement fee, typically up to 1 percent of the loan. Some lenders reduce or waive the arrangement fee for larger loans.

For a ready home bought for cash at AED 10,000,000: the transfer fee is AED 400,000, the trustee fee AED 4,000 plus VAT, the administration fee under AED 600, and the agency commission AED 200,000 plus AED 10,000 VAT. The total is about AED 615,000, a little over 6 percent of the price, plus the developer's no-objection fee.

With a mortgage of half the price, add AED 12,500 plus the fixed charge for registering the loan, the valuation, and the bank's arrangement fee if it charges one.

Service charges are the running cost. They are set per square foot by community and building, approved by the Real Estate Regulatory Agency, and published on the Land Department's service charge index. A branded or hotel-serviced tower sits at the upper end. We show the current rate for any home we present, against its neighbours.