Buying a property in Dubai can feel exciting and overwhelming at the same time. You probably already know the advertised cost of your dream apartment or villa. But what about those additional hidden expenses?
Let’s shed some light on the extra fees you’ll encounter when buying a property in Dubai. By understanding these upfront, you can manage your budget smartly and avoid unwelcome surprises.
The DLD Fees
One of the first significant costs you’ll face when buying a property in Dubai is the Dubai Land Department (DLD) fee. So, what is the 4 DLD fee exactly?
It refers to a government-imposed fee of 4% of your property’s purchase price.
For instance, if your chosen apartment costs AED 1 million, the 4% DLD fee means you’ll pay AED 40,000 to the Dubai Land Department. Generally, this cost is split equally between the buyer and the seller (2% each). However, many developers shift the entire responsibility to the buyer, so ensure you verify this detail upfront.
Trustee Fee Dubai – An Essential Administrative Cost
Besides the DLD fees, another crucial expense is the trustee fee. Trustee offices handle property transfers and documentation, ensuring all paperwork meets legal requirements. This fee typically falls around AED 4,200 (including VAT) but can vary depending on transaction complexity.
You’ll pay this trustee fee when finalizing the purchase, so budget accordingly.
Sales Progression Fee Dubai: What’s This About?
If you’re buying from a developer or via an agent, you might encounter something known as a sales progression fee. This administrative fee covers the costs of managing and facilitating your property transaction, coordinating documents, and ensuring everything moves smoothly.
Who Pays NOC Fees?
Here’s another often-overlooked fee—the NOC (No Objection Certificate) fee. An NOC certifies that the property has no outstanding debts or obligations, allowing ownership transfer.
You might ask yourself, “Who pays NOC fees?” Usually, the seller covers it, but it’s not uncommon for developers to request this from buyers instead.
Fees When Buying an Apartment: Maintenance Charges
Once you’ve successfully bought your apartment, you might wonder, “What is the biggest cost after buying a house?” For most Dubai property owners, maintenance charges are the answer.
Apartment complexes typically charge annual service fees, calculated per square foot of your property. These fees cover maintenance of common areas, pools, gyms, landscaping, elevators, and general upkeep.
Always double-check these ongoing costs before finalizing your purchase, using a reliable Dubai property purchase calculator available online or through your property consultant.
Mortgage Fees and Valuation Charges
If you decide to finance your property with a mortgage, additional costs will arise. Banks typically charge an arrangement fee and there are valuation fees to consider as well. Factor these into your budget from the very start if a mortgage is part of your purchasing plan.
Tips to Plan Your Budget Effectively
Given these hidden expenses, how can you be better prepared?
- Engage a Trustworthy Consultant: Professional consultants know the market inside-out, guiding you through every fee and helping you make informed decisions.
- Verify All Fees in Advance: Before signing any agreement, clarify who covers each cost and get it clearly documented in your sales contract.
- Use a Dubai Property Purchase Calculator: Online calculators can estimate total costs accurately, giving you clarity before making decisions.
Be Prepared, Not Surprised
Buying property in Dubai is rewarding—but only if done correctly. Hidden costs, if overlooked, can quickly turn your dream purchase into a stressful experience. By understanding all these fees upfront you can approach the property-buying journey confidently and comfortably.
At MNA Properties, we pride ourselves on transparency and knowledge. If you’re exploring the Dubai property market or have questions about your transaction costs, don’t hesitate to reach out to our experienced team. We’re here to guide you through every step of your exciting property journey.
Happy property hunting!
