Planning to buy an apartment in Dubai and want to understand the real cost?
That’s the right approach — the price of the property itself is only part of the equation. In the UAE, rules vary depending on whether you’re buying off-plan property from a developer or a resale unit from a private owner.

Let’s break down all the additional fees and costs so you can plan ahead and avoid surprises.

1. Buying from a Developer: Maximum Transparency

If you’re purchasing an off-plan apartment or a ready property directly from a developer, the process is simple — no agent commissions, hidden fees, or extra charges.

Official fees to consider:

Mandatory payments:

• 4% Dubai Land Department (DLD) fee — paid once upon signing the Sales and Purchase Agreement (SPA).
• Title registration fees:
  • Oqood (for under-construction units): around AED 5,250
  • Title Deed (for completed units): around AED 2,000–3,000

Utility connections:

• EMPOWER (district cooling) — one-time payment around AED 5,000
• DEWA (electricity and water) — setup fee around AED 2,000–3,000, depending on apartment size

Snagging inspection (recommended):
Before taking handover, a snagging inspection by an independent specialist is recommended. It identifies any issues that the developer must fix free of charge within the first year.

• Cost: AED 1,500–2,500 (depending on unit size and provider)

2. Service Charges (Annual Maintenance Fees)

After purchase, owners pay annual service charges for maintaining common areas such as lobbies, pools, elevators, security, and landscaping.

Average rate:

• AED 12–20 per sq. ft. per year
• Roughly 10% of annual rental value

These charges apply whether the unit is owner-occupied or rented out.

3. Buying on the Secondary Market: Additional Costs

If you’re buying a ready unit from a private owner, costs are slightly higher — but you get immediate possession.

In addition to the 4% DLD fee, you’ll need to pay:

• 2% agent commission — covers full transaction management, legal verification, and ownership transfer.
• Utility account transfers (DEWA, cooling, internet) — one-time setup fees, typically up to AED 1,000.
• Snagging is usually unnecessary for resale properties, as prior owners have already handled it.

Which Option to Choose

Buying from a developer:

• No agent commission
• Interest-free payment plans up to 7 years
• Snagging recommended before handover
• Keys after project completion
• DLD fee 4%

Buying resale property:

• 2% agent commission applies
• Payment via cash or mortgage
• Snagging usually not required
• Immediate handover
• DLD fee 4%

Conclusion: Plan Ahead to Save

Buying property in Dubai is about more than square footage — it’s about strategy and planning.

When calculating your total budget, include:

• 4% DLD fee
• Registration fees
• Utility connection costs
• Agent commission (if applicable)
• Annual service charges

Buying from a developer is often the most cost-effective choice — interest-free payment plans, no commissions, and full transaction transparency.
Buying on the secondary market costs more upfront but gives you an immediately available, income-generating asset.

Have questions?
Contact us — we’ll calculate your total costs and help you choose the optimal option: developer purchase, resale, ready-to-move-in, or payment plan.