Planning to buy your first home in the UAE? The headline price is only the beginning. In reality, the hidden costs of buying a house in the UAE include government fees, bank charges, utility deposits, and more. These differ by emirate, property type (ready vs off-plan), and ongoing government updates.
This guide breaks down every cost, explains why it matters, and outlines who is responsible for each payment, helping you plan your home-buying budget with greater confidence.
- Transfer charges in Dubai
- Transfer fee in Abu Dhabi
- Trustee office charges in Dubai
- Mortgage registration charges
- Bank charges for a mortgage
- Registration charges for off-plan units
- Clearance costs and NOC fees
- Community fees and service charges
- Early loan settlement fees
- Utility connection and deposit fees
- Deposit for the district cooling provider
- Costs after moving in
- Cost of renting out your property
- Charges for a legal advisor
- Key takeaways
- FAQs
Transfer charges in Dubai
The Dubai Land Department charges 4% of the sale value for property sales registration. Usually, the buyer pays the full amount, though this fee can be split equally between the buyer and seller.
Additionally, AED 250 must be paid for the issuance of the title deed, a knowledge fee of AED 10, and an innovation fee of AED 10.
Transfer fee in Abu Dhabi
The Digital Real Estate Ecosystem (DARI) or Abu Dhabi Real Estate Centre (ADREC) regulates property sales registration. Typically, the fee for registering a property sale is 2% of the sale value.
Register and get the title deed through the DARI portal. The service pages detail all the steps and charges.
Trustee office charges in Dubai
To complete the transfer, both parties must make an appointment and visit a trustee centre approved by the Dubai Land Department.
On the day of the visit, a trustee’s office fee must be paid, amounting to AED 4,000 plus VAT if the sale price is AED 500,000 or higher. The cost is AED 2,000 plus VAT if it is less than this. This fee is in addition to the transfer fee.
Mortgage registration charges
If you are getting a mortgage loan to buy a house in Dubai, you must pay a mortgage registration fee to the Dubai Land Department.
This is usually 0.25% of the total loan value. In addition, you must pay an AED 10 innovation fee and an AED 10 knowledge fee.
If a title deed service applies to the transaction, an additional AED 250 must be paid. The trustee partner service fee also applies to mortgage services.
Bank charges for a mortgage
When you take a mortgage loan from a bank, a processing fee is levied. In addition, a valuation fee (typically AED 2,500-3,500) must be paid.
The loan also includes property and life insurance charges. The banks share the requirements for these insurance charges in their official documents.
For instance, Abu Dhabi Commercial Bank (ADCB) makes life and property insurance mandatory for home loans.
Registration charges for off-plan units
Developers register the sale of off-plan properties through Oqood, the Dubai Land Department’s system. Fees vary by project but can reach up to AED 5,000 plus VAT for certain services. Always confirm with your developer or the DLD before budgeting.
Clearance costs and NOC fees
In most communities with a master plan, a No Objection Certificate (NOC) from the developer is required. Fees vary by developer and must be paid by the buyer, the seller, or split between the parties.
For example, EMAAR lists ownership change and clearance requirements in its official schedule and moving-in guides. These documents also state that all service charges must be paid in full before buying a property.
Community fees and service charges
RERA Dubai, or the Dubai Land Department, charges annual maintenance fees. These vary significantly depending on the development. For instance, fees might range from AED 10 to 25 per square foot.
Before buying, property seekers must check the Service Charge and Maintenance Index to understand current costs and ensure settlements are calculated on a prorated basis.
Early loan settlement fees
Banks set caps on loan early settlement. The Central Bank of the UAE limits early settlement to 1% of the total remaining loan amount or AED 10,000, whichever is lower. However, banks may impose their own limits within this cap, so check your agreement.
Utility connection and deposit fees
The Dubai Electricity and Water Authority (DEWA) collects a refundable deposit, usually around AED 2,000 for an apartment and AED 4,000 for a villa, plus activation charges.
Actual amounts may vary based on property size and developer requirements. Before you move in, visit DEWA’s official website and add all the charges to your budget.
The Abu Dhabi Distribution Company (ADDC) also takes a refundable deposit when setting up an account.
Deposit for the district cooling provider
Most district cooling providers, such as Empower, charge a refundable deposit when you register. This is typically around AED 2,000 for an apartment and AED 3,000 for a villa, but it’s best to confirm with your provider directly.
Costs after moving in
After moving in, a municipality housing fee may apply. In Dubai, this is usually 5% of the annual rent, billed with DEWA and typically paid by tenants or owner-occupiers. In Abu Dhabi, tenants pay a 3% fee on yearly rent, which is also charged through utility bills.
Cost of renting out your property
Every tenancy contract must be registered on Ejari. In Dubai, online registration costs AED 100, with an additional AED 10 each for innovation and knowledge fees. If you register at the centre, an extra AED 120 may apply. Factor these costs into your rental before renting your property.
Charges for a legal advisor
For most property seekers, hiring a legal advisor who handles all compliance requirements and supports them in completing the transaction is standard practice. The RERA or the Dubai Land Department does not fix the charges for these advisors.
These charges are usually agreed upon between both parties. According to Dubai regulations, agent commissions are determined by the agreement between the two parties. This reinforces that the market standards set the structure for the professional fee.
Key takeaways
The hidden cost of buying a house in the UAE ranges widely. From transfer fees to developer NOCs and insurances, these charges, when not known, can easily throw your budget off track. To prepare and set your budget confidently, visit the official websites of the Dubai Land Department and DARI.
If you are applying for a mortgage loan, ensure you have checked the bank’s official documents to uncover all the mortgage charges you must bear. Once you know all the hidden charges, create a buffer for these to ensure a smooth transfer, and then move into your new home.
FAQs
The Dubai Land Department has set a transfer fee of 4% of the total sale value.
Most lenders in the UAE ask for property and life insurance. The requirements are shared on the product pages and bank agreements.
Transfer fees, knowledge and innovation fees, trustee office fees, developer NOC fees, utility deposits, agent fees, and bank charges could arise at the last minute.
