Extra Costs to Budget for When Buying a Home in Dubai

Buying a home in Dubai involves more than just the purchase price. Prospective buyers need to anticipate several additional costs—from deposit and registration fees to agent commissions and ongoing service charges—to accurately budget the entire transaction. First, most buyers must put down a security deposit of about 10% of the purchase price, held in escrow and returned upon successful transfer. Next come the government-related fees: registration and title deed costs through the Dubai Land Department, which typically include 4% of the purchase price plus a Dh 580 administrative charge, along with separate fees depending on whether the property is off-plan or completed. If the purchase involves a mortgage, expect bank-related charges such as a 0.25% loan registration fee and valuation and arrangement fees ranging in the thousands of dirhams. Real estate broker fees (commissions) also apply, commonly 2% + VAT of the purchase price, paid by the buyer. Finally, once you’re a homeowner, ongoing service charges for maintenance, security, landscaping and utilities can range significantly—often from Dh 3 to Dh 30 (or more) per square foot annually depending on the building and community. Buyers are strongly encouraged to consult a mortgage advisor and vet all cost lines before making an offer so there are no surprises.