Buying a home in Dubai: every cost
Updated
The price is only the start. This is everything you pay when buying a home in Dubai — and how the rules change when it is not your first home.
Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.
1. The down payment depends on who you are and which home it is
| Buyer | First home ≤ AED 5M | First home > AED 5M | 2nd, 3rd and every further home | Off-plan |
|---|---|---|---|---|
| Expat | 20% | 30% | 40% | 50% |
| UAE national | 15% | 25% | 35% | 50% |
These are minimums set by the Central Bank ("second and subsequent house or investment property"). There is no separate rule for a third or fourth home — they all count as "subsequent". Banks lend on their own valuation, so a low valuation means a bigger down payment. For investment properties, banks also deduct at least two months' rent when testing whether you can afford the loan.
2. Costs on transfer day
- Dubai Land Department transfer fee: 4% of the price (officially 2% seller, 2% buyer — in practice usually all paid by the buyer).
- Trustee office: AED 4,000 + VAT (AED 2,000 + VAT under AED 500,000); title deed AED 250; map AED 250; AED 10 knowledge + AED 10 innovation fee per document.
- Mortgage registration: 0.25% of the loan + title deed fee; a further trustee fee if not registered the same day.
- Bank arrangement fee and valuation fee (plus VAT; typical amounts, your offer letter shows the real ones); agent commission, usually 2% + VAT; developer NOC for resales.
3. Moving in and every year after
DEWA asks for a refundable deposit (AED 2,000 apartment, AED 4,000 villa) plus activation (AED 125 for small meters, AED 300 for large ones) and AED 30 in registration, knowledge and innovation fees. After that you pay service charges to the owners' association (check the DLD Service Charge Index for your building), the Dubai Municipality housing fee on your DEWA bill (officially 5% of the yearly rent for tenants; what owners pay is not published on any government page we found, so the calculator estimates it), and the insurance your bank requires.
4. First-time buyers
The Dubai First-Time Home Buyer Programme is open to UAE residents aged 18 or over who do not own a freehold home in Dubai, for homes below AED 5 million. Register on the Dubai Land Department website or the Dubai REST app; participating developers and banks then offer better terms. It does not waive the 4% fee, and you can use it only once.
Put your own numbers in the purchase costs calculator and the mortgage calculator.
Questions people ask
How much down payment do I need for a first home in Dubai?
At least 20% as an expat and 15% as a UAE national for a first home up to AED 5 million; 30% and 25% above AED 5 million. Second and further homes: 40% and 35%. Off-plan: 50% for everyone. Banks lend on their own valuation, so a low valuation means a bigger down payment.
What is the Dubai Land Department fee when buying?
In Dubai, 4% of the price to register the transfer — officially 2% seller and 2% buyer, in practice usually all paid by the buyer — plus the trustee office fee (AED 4,000 + VAT, or AED 2,000 + VAT under AED 500,000), AED 250 title deed, AED 250 map and small admin fees. A mortgage adds 0.25% of the loan for registration.
What do I pay every year after I buy?
Service charges to the owners' association (check the DLD Service Charge Index for your building), the Dubai Municipality housing fee on your DEWA bill, and the insurance your bank requires. DEWA also takes a refundable deposit of AED 2,000 for an apartment or AED 4,000 for a villa when you move in.