In order to protect buyers and sellers, some rules have been introduced in the Dubai real estate market. Everyone must abide by these rules without exception. One of these rules is the mandatory payment of fees. Its amount depends on the type of property and the specific area.

The fee for the land sector can be considered as a one-time tax paid to the Emirate government. The fee is 4% of the value of the property.

In Dubai, the buyer and the seller each pay half of the fee. Therefore, each party pays 2%. When purchasing a property under construction (off-plan property), developers usually exempt buyers from paying this fee and pay it themselves as a pleasant incentive.

In addition to the mandatory transaction registration fee, buyers are also required to pay a property registration fee. The amount of which also depends on the value of the property. Buyers who use mortgage funds must also pay a mortgage registration fee.

Here are all the fees you need to pay to DLD

Dubai Land Department fee; 4% of the property value plus an administration fee.

580 AED ($158) for apartments and office space in Dubai.

430 AED ($118) for the purchase of a plot of land

AED 40 (USD 11) for off-plan properties.

AED 2,000 (USD 545) plus 5% VAT for registration of properties valued below AED 500,000 (USD 136,128)

Registration fee for properties valued over Dh500,000 ($136,128) - Dh4,000 ($1,090) plus 5% VAT.

Dubai Land Department mortgage registration fee - up to 0.25% of the mortgage amount, plus AED 290 (USD 79).

IMPORTANT! Payment of fees must be made within 60 days. Otherwise, the purchase will be cancelled. If you do not use a mortgage to purchase a property, you do not have to pay this fee.

Agency fee

If you are buying a property with the help of a real estate agent, you should pay a fee for the agent's work. An experienced broker will help buyers make informed decisions and ensure that they move smoothly through all stages of the buying and selling transaction.

To ensure the legal accuracy and security of the transaction, buyers often involve the services of lawyers and translators. These experts ensure that your documents, files and contracts are in compliance with UAE law.

Fees can be allocated in the following manner.

The agent's fee is 2% of the value of the property plus 5% VAT.

Lawyer's fees are from approximately AED 6,000 (USD 1,633) to AED 10,000 (USD 2,722).

Insurance Deposit

In order to confirm the intention to purchase the property, the buyer must pay an insurance deposit. This deposit will be held by the trustee (agent) until the property is fully transferred to the buyer.

The initial insurance deposit will amount to 10% or more of the value of the property, depending on the condition of the property. This amount is usually collected by a registered RERA broker, which is the regulatory authority of the Land Office.

Mortgage Registration

Buyers who take out a loan to purchase a property are required to pay a mortgage fee at the mortgage rate. Mortgage fees are divided into mortgage processing fees, processing fees and appraisal fees.

If you have a registered mortgage then you will need a NOC, a no objection certificate. Mortgage registration fees in Dubai range from AED 500 (US$136) to AED 5,000 (US$1,361).

Basic fees when buying a property with a mortgage.

Mortgage processing fee - 1% of the bank's mortgage amount plus 5% VAT.

Property valuation fees from AED 2,500 (US$680) to AED 3,500 (US$952) plus 5% VAT.

Insurance premiums

Mandatory property insurance has not yet been introduced in Dubai, but buyers of new generation residential properties are strongly advised to take out such insurance. Insurance provides the best protection against potential damage.

If a home buyer purchases a property with a mortgage, they will need to take out life insurance. It pays the bank in the event of an accident or sudden illness of the client.

The insurance premiums included when buying a property in Dubai.

Property insurance is about Dhs1000 per year.

Life insurance - is about 0.4% to 0.8% of the mortgage amount per year.

Property Maintenance Fee

After the transfer of ownership of the property, the buyer automatically becomes the new owner. Next, the new owner is required to pay an annual fee, also known as a maintenance fee.

These fees are payments for the maintenance of the property and utilities. The fees are paid to the Dubai Land Authority. The maintenance fee is based on the RERA Maintenance Index per square foot of real estate unit.

Electricity and water charges

Another key expense in Dubai is the fee paid to the DEWA, the regulatory body for electricity and water management for all households in Dubai.

The range of DEWA fees depends on several factors, such as the type of property and the area where the development is located.

The cost of connecting to DEWA services ranges from Dhs2,000 ($545) for an apartment to Dhs4,000 ($1,090) for a villa. This amount may vary depending on the size of the property.