Buying a property in Dubai is an exciting milestone, and if you’ve reached the stage of researching Dubai Land Department (DLD) fees, it means you’re just a step away from turning your investment plans into reality.
Before you finalize your purchase, it’s essential to understand the mandatory fees associated with property registration and ownership transfer.
In this guide, you’ll find a clear breakdown of all the DLD fees you can expect when buying property in Dubai in 2026, helping you plan your budget confidently and avoid any unexpected costs along the way.
When you purchase property in Dubai, the Dubai Land Department charges several mandatory fees to process and register your transaction. These fees are standardized and payable during the transfer of ownership. Let's break down each fee so you know exactly what to expect.
The biggest fee you'll pay is the DLD transfer fee, which amounts to 4% of the property's purchase price. While this fee is meant to be split equally between the buyer and seller (2% each), market practice in Dubai typically sees the buyer covering the entire 4% cost. This fee is payable at the time of property registration and represents the largest single expense beyond your down payment.
Example: For a property valued at AED 1,000,000, the DLD transfer fee would be AED 40,000.
The property registration fee depends on the value of your purchase, as properties valued at AED 500,000 or above incur a registration fee of AED 4,000 plus 5% VAT, bringing the total to AED 4,200. For properties valued below AED 500,000, the registration fee is AED 2,000 plus 5% VAT (AED 2,100 total). This fee covers the administrative processing of your property transfer.
To register the property under your name officially, you'll need to pay a title deed issuance fee that typically costs AED 580 for apartments and offices, AED 430 for land plots, and AED 40 for off-plan property contracts. This mandatory administrative charge ensures your ownership documentation is properly processed and issued.
Additional administrative fees of approximately AED 580 are charged to cover various documentation and processing services throughout the transaction. These costs are standard across most property purchases in Dubai.
It's important to note that DLD fees are not the only costs property buyers need to consider when purchasing a property, as after completing your purchase, you'll be responsible for several recurring annual expenses that are essential to property ownership in Dubai.
Service charges, also known as maintenance fees, are annual payments made to your property's homeowners association or management company.
These fees cover the upkeep of common areas, security services, landscaping, waste management, and building maintenance, and vary based on property type, location, and amenities offered.
You have to keep in mind that luxury properties with extensive facilities like swimming pools, gyms, and 24-hour concierge services usually have higher service charges than standard residential buildings.
It’s worth mentioning that service charges are calculated per square foot and are regulated by the Real Estate Regulatory Agency (RERA).
When you take ownership of your property, you'll need to activate utility accounts with the Dubai Electricity and Water Authority (DEWA). DEWA requires a refundable security deposit of AED 2,000 for apartments. Additionally, there's a connection fee and ongoing monthly charges for electricity, water, and cooling services based on your consumption.
Other than the annual costs, some additional costs may or may not be applicable in your case.
If you're purchasing the property from a real estate agent or a brokerage company, expect to pay a commission of approximately 2% of the property purchase price. This fee is negotiable and is typically paid upon successful completion of the transaction.
Kindly note that when dealing with a developer like Binghatti, this fee will not be applicable.
If you're financing your property purchase, you'll encounter additional costs, including bank arrangement fees, property valuation fees, and mortgage registration fees are approximately 0.25% of the loan amount plus AED 290, and transfer fees. These can add several thousand dirhams to your total expenses.
Before approving your mortgage, banks usually require an official property valuation, which ranges from AED 2,500 to AED 3,500, depending on the property type and value.
When planning your budget for a property purchase in Dubai, it's wise to set aside approximately 7-10% of the property value to cover all associated fees and costs. This includes the 4% DLD transfer fee, registration fees, agent commission (if applicable), mortgage-related expenses, and various administrative charges.
For off-plan properties, the fee structure differs slightly, with buyers paying an Oqood registration fee (approximately 4% of the property value) during construction.
Understanding Dubai Land Department fees and associated property costs is crucial for making informed investment decisions. While the 4% DLD transfer fee represents the largest upfront cost, buyers must also keep in mind the registration fees, administrative charges, ongoing service fees, and utility expenses. By keeping these costs in mind from the beginning, you can ensure a smooth property purchase experience without any financial surprises.
Have an inquiry for one of Binghatti's luxury apartments? Reach out to us today by calling +97180015, and one of our property consultants will guide you through your purchase journey.
