The True Cost of Buying Property in Dubai

The price on the listing is the beginning of the number, not the end of it. A realistic budget for buying property in Dubai includes transaction costs, first-year running costs and a reserve for the things nobody quotes upfront.

Transaction costs

• DLD transfer fee (typically 4% of price at the time of writing, verify current rate)
• Trustee office fee
• Agency fee (typically 2%)
• NOC fee to developer
• Mortgage arrangement fee and valuation, if applicable

A useful rule of thumb: budget 6–8% of price for combined transaction costs on a cash purchase, more with a mortgage.

Ongoing costs

• Service charges (per sq ft, per year, varies widely by building)
• Chiller (if not included in service charges)
• DEWA (utilities)
• Home insurance
• Property management, for absentee owners

Things people underestimate

Service-charge increases over time. Sinking-fund contributions in older towers. Fit-out and furnishing costs on bare-shell units. The cost of a good handyman when a chiller breaks in July.