How much does it really cost to buy a propertyin Dubai?
Many investors look only at the property price, but the true cost of buying in Dubai also includes DLD, registration fees, brokerage on resale deals, service charges, furniture, property management and sometimes mortgage costs.
The advertised price isn’t the whole story
If you saw a property at a certain price, that’s only the base of the calculation. Before deciding, understand how much money the deal really requires, what’s paid now, what’s paid later, and what’s left as net yield.
A smart investor doesn’t just ask “how much is the property?” but “how much is the whole deal?”
In Dubai there are one-time costs at purchase, running costs after purchase, and costs that may appear only later. Whoever doesn’t calculate everything upfront may think the yield is higher than it really is.
Which costs should be calculated before buying a property in Dubai?
Before entering a deal, build a complete cost table. Not roughly, not from memory, and not only from what was shown in the presentation.
DLD / land registry
Usually one of the main costs beyond the property price. Calculate the registration fee based on the deal value and check before signing who actually pays per the agreement’s terms.
Trustee / registration fees
Some deals carry registration fees, Trustee, Title Deed issuance and other fees. Amounts vary by deal type and property value.
Brokerage commission
In off-plan deals the buyer pays no brokerage at all. In resale / secondary deals the buyer’s brokerage is 2% of the deal price, plus 5% VAT on the commission.
Service Charges
Service charges pay for building and community maintenance. They can significantly affect the property’s net yield.
Furniture and property preparation
A property intended for rental may require furniture, appliances, repairs, cleaning, professional photography and marketing preparation.
Property management and rental
If you don’t live in Dubai, you may need a management company, tenant handling, contract renewals, maintenance and service coordination.
DLD is one of the first numbers that must enter the calculation
Buying a property in Dubai carries a registration cost with the Dubai Land Department. Per the official information, in a standard sale the fee is presented as 2% from the seller and 2% from the buyer. In practice, check in each deal who bears the payment per the agreement and deal terms.
There are also additional fees such as Title Deed, maps, Knowledge Fee, Innovation Fee and Service Partner Fees, depending on property type and deal value.
A simple DLD calculation example
If a property price is 1,000,000 AED, then 4% is 40,000 AED. This excludes additional fees, resale brokerage, furniture, service charges or financing costs.
This is one of the important differences between off-plan and secondary
Many investors mix up deal types and don’t understand when brokerage is paid and when not. A clear separation is essential.
Off-plan
In off-plan deals the buyer pays no brokerage at all. The agent’s commission is paid by the developer. You still need to calculate DLD, the payment plan, future payments, handover costs, furniture, service charges and post-handover property management.
Resale / secondary
In resale / secondary deals the buyer pays brokerage of 2% of the deal price, plus 5% VAT on the commission — in practice a cost of 2.1% of the deal price.
How is brokerage calculated in a resale deal?
If the property price is 1,000,000 AED, the brokerage is 2%, i.e. 20,000 AED. Add 5% VAT on the commission — another 1,000 AED.
So the total brokerage cost including VAT is 21,000 AED — in practice 2.1% of the deal price.
Quick calculation
Costs differ between an off-plan deal and a resale property
Many investors compare only the property price, but you should also compare the payment structure, brokerage costs, costs at purchase, costs until handover and costs after receiving the property.
Costs in off-plan
In off-plan the buyer pays no brokerage. The advantage is usually a staged payment plan, but you still must calculate all surrounding costs and not look only at the first payment.
Costs in secondary / resale
A resale property usually carries more immediate costs: DLD, Trustee, brokerage of 2% + 5% VAT on the commission, service charges, condition inspections, repairs and sometimes furniture or upgrades.
A mortgage adds another layer of costs
If the purchase involves bank financing, calculate not only the monthly repayment but also mortgage registration costs, valuation, insurance, bank fees and additional costs.
Per the Dubai Land Department, a standard mortgage registration fee may be 0.25% of the mortgage value, in addition to fees and other payments per deal type.
What to check before a mortgage?
The real yield isn’t what you’re told — it’s what’s left after expenses
Many presentations show gross yield. But an investor must calculate net yield: expected rent in, minus service charges, management, maintenance, vacancy periods, repairs, furniture and additional costs.
Gross rent
The amount the property is expected to bring in before expenses. Important, but only the beginning.
Running expenses
Service charges, property management, repairs, maintenance, insurance, marketing and vacancy periods.
Net yield
What’s left after all expenses. That’s the number to compare between deals.
Mistakes investors make when calculating costs in Dubai
Miscalculating costs can turn a deal that looks great on paper into a much weaker one in practice.
Forgetting the DLD
Investors look only at the property price and leave registration and fees out of the calculation.
Not separating off-plan from secondary
In off-plan the buyer pays no brokerage, but in secondary there’s 2% brokerage plus VAT on the commission. That’s a significant calculation difference.
Not calculating service charges
Service charges can heavily affect net yield, especially in buildings with many facilities.
Believing gross yield
Gross yield looks nice, but it doesn’t say how much money actually remains for the investor.
Forgetting furniture and preparation
If the property isn’t rental-ready, calculate furniture, appliances, repairs and photography.
Not planning for vacancy
Even a good property can sit empty between tenants. Take it into account.
How to think about a purchase budget correctly?
If your budget is a million dirhams, that doesn’t mean you should look for a million-dirham property with no room left for additional costs. Build a total budget.
An important rule of thumb
Don’t enter a deal where all your money goes to the property price alone. Leave a margin for transaction costs, maintenance, furniture, delays and contingencies.
I help you see the total cost, not just the property price
When reviewing a deal in Dubai, I help you break down the numbers: purchase price, DLD, brokerage if it’s a resale deal, future payments, running costs, net yield and risks that can affect the outcome.
What should you send me for review?
If you’ve been offered a property or project, send me the details and together we’ll check the deal’s true cost and what must enter the calculation.
A good deal isn’t just a good price — it’s numbers that work even after all the expenses
Before you move ahead, know how much you’ll actually pay, how much holding the property will cost, what realistic rent you can get and what’s left net at the end.
Questions about property purchase costs in Dubai
Is DLD 4%?
Per the Dubai Land Department’s official information, a standard sale shows 2% from the seller and 2% from the buyer. In practice, check in each deal who bears the payment per the agreement and deal terms.
Is there a brokerage fee in every deal?
No. In off-plan deals the buyer pays no brokerage at all. In resale / secondary deals the buyer pays 2% of the deal price, plus 5% VAT on the commission.
How much does it come to in a resale deal?
2% brokerage plus 5% VAT on the commission equals in practice 2.1% of the deal price. For example, on a 1,000,000 AED property, brokerage incl. VAT is 21,000 AED.
What’s the difference between gross and net yield?
Gross yield is before expenses. Net yield is after service charges, management, maintenance, vacancy periods and additional costs.
How much money is needed beyond the property price?
It depends on the deal type, property value, whether it’s off-plan or secondary, whether there’s a mortgage, property condition, furniture, service charges and additional costs. That’s why each deal should be calculated separately.
Want to understand what the deal will really cost you?
Send me the property details, price, deal type and payment plan, and together we’ll check which costs must enter the calculation before deciding.
The information on this site is for general purposes only and does not constitute legal, financial, tax or investment advice. Fees, costs and terms may change, so before any deal verify the current figures with the official bodies and qualified professionals.