Buying a property in Dubai is one of the most important investment decisions made by individuals and global investors, especially with the rapid growth the real estate market is witnessing in 2025. However, focusing solely on the listing price may lead to an inaccurate understanding of the total cost of ownership. There are several essential fees and hidden expenses that both first-time buyers and experienced investors must consider.

In this comprehensive guide, Bloom Luxury Signature provides a clear and detailed explanation of all the costs involved in purchasing property in Dubai in 2025 — from Dubai Land Department (DLD) fees and government charges, to agent commissions, mortgage expenses, service charges, and ongoing maintenance fees. Our goal is to help you make a well-informed decision that ensures a safe investment and protects you from unexpected obligations.

One-Time Fees When Buying Property in Dubai

• Dubai Land Department (DLD Fees)

This is one of the largest costs, calculated at 4% of the purchase price, paid to register the property.

• Registration & Issuance Fees

For example:

For properties under AED 500,000 → AED 2,000 + 5% VAT

For properties above AED 500,000 → AED 4,000 + 5% VAT

• Real Estate Agent Commission

This fee is agreed upon between the seller and agent, or the buyer and agent. Typically, it is a percentage of the sale price + 5% VAT.

• Mortgage Expenses

If the property is financed through a bank:

DLD mortgage registration fee: 0.25% of the loan amount + approx. AED 290

Property valuation fees, mortgage processing fees, and insurance charges.

• Legal Fees / Conveyancing Services

Property conveyancing services or legal representation usually range between AED 6,000 and AED 10,000.

Recurring Annual Costs

• Service Charges

These are calculated per square foot annually and typically range between AED 10 and AED 25 per sq. ft., depending on the project.

• Property Insurance

While not always mandatory, home and contents insurance is highly recommended to protect your investment.

• Utility Deposits

For example, DEWA may require refundable deposits of:

AED 2,000 for apartments

AED 4,000 for villas

Other Important Costs Often Overlooked

• NOC Fees (No Objection Certificate)

Required from the developer for secondary transfers, typically ranging from AED 500 to AED 5,000.

• Snagging / Additional Finishing Costs

Expenses for modifications, final touches, or improvements upon handover.

• Developer Promotions & Waivers

Some developers offer offers that waive certain fees — but always verify them in writing.

Quick Example Calculations

If you purchase a property in Dubai for AED 1,000,000:

DLD Fee (4%) = AED 40,000

Agent Commission (2%) = AED 20,000 + VAT

Registration & Admin Fees ≈ AED 5,000

Legal / Conveyancing Fees ≈ AED 8,000

Total estimated upfront costs: AED 73,000 (approx. 7.3% of the purchase price), excluding ongoing annual fees.

This aligns with market reports indicating that the full acquisition cost can reach 7–10% of the property price.

Tips to Avoid Surprises When Buying Property in Dubai

• Request a full breakdown of all fees from the developer or agent, and confirm who is responsible for each cost (buyer or seller).
• Verify the annual service charges for the building or community (check the cost per sq. ft.).
• If using a mortgage, ask the bank for a written list of ALL fees — valuation, processing, registration, etc.
• Check for any hidden payments due at handover or post-completion.
• Keep a financial buffer of 3–5% of the property value to cover unexpected expenses.

Conclusion

Buying property in Dubai is a smart move, especially with the strong market fundamentals and investor-friendly policies. However, like any major investment, it requires proper financial planning. By considering the actual fees and hidden costs, you avoid financial pressure and eliminate the element of surprise.

At Bloom Luxury Signature, we help you analyze every detail carefully — ensuring your real estate choice is not only luxurious, but also financially sound.