The True Cost of Buying Property in Dubai (With Real Numbers)
A full breakdown of the cash you need to buy a home in Dubai: down payment, DLD fee, agency, mortgage fees – and the running costs after.
Updated 27 October 2026
A common surprise for first-time buyers in Dubai is that the cash needed on transfer day is far more than the down payment. Here is what a typical purchase really costs.
The example
An expat buys a ready AED 1,800,000 apartment as a first home with a 25-year mortgage at 4.25%.
| Item | AED |
|---|---|
| Down payment (20%) | 360,000 |
| DLD transfer fee (4%) | 72,000 |
| Agency commission (2% + VAT) | 37,800 |
| Bank arrangement fee (1% of loan + VAT) | 15,120 |
| Trustee fee (AED 4,000 + VAT) | 4,200 |
| Mortgage registration (0.25% + AED 290) | 3,890 |
| Valuation (+ VAT) | 3,150 |
| DLD admin / title deed | 580 |
| Total cash needed | 496,740 |
That is 27.6% of the purchase price. Fees alone are AED 136,740 – money you will not get back when you sell. Try your own numbers in the mortgage calculator.
Monthly costs after you buy
- Mortgage: about AED 7,801 a month in this example.
- Service charges: often AED 15,000–25,000 a year for a 1,000 sq ft apartment.
- Insurance: life cover required by the bank and building/contents insurance.
- Housing fee: owner-occupiers pay a Dubai Municipality fee through their DEWA bill.
- Maintenance: budget around 0.5% of the value a year.
Ways to reduce the upfront bill
- Negotiate agency commission or buy directly from an owner or developer.
- Look for bank offers with waived arrangement or valuation fees.
- Off-plan launches sometimes include DLD fee waivers – but require 50% equity for financing.
Not sure buying beats renting for you? Compare both with the rent vs buy calculator.