A property advertised at AED 1 million needs a budget above AED 1 million. Whether you are comparing homes in Dubai Hills Estate or Dubai Creek Harbour, start with the costs buyers usually pay in practice.
What does a resale buyer usually pay?
- DLD transfer fee: 4% of the purchase price. In normal Dubai market practice, the buyer pays the full amount. Budget for 4% unless your signed agreement says otherwise.
- Agency commission: usually 2% of the purchase price, plus 5% VAT on the commission. Agree the fee with your agent before proceeding; it is negotiable.
- Registration trustee fee: for a ready-property sale of AED 500,000 or more, allow AED 4,000 plus VAT, or AED 4,200 in total. Below AED 500,000, the listed fee is AED 2,000 plus VAT.
The trustee office handles the transfer appointment. Title-deed, map and other government administration charges are separate. Ask for an itemised transfer statement, including who pays any developer NOC and conveyancing charges.
What changes if you use a mortgage?
Mortgage registration is 0.25% of the loan amount, plus applicable administration charges. On an AED 800,000 mortgage, that percentage is AED 2,000.
Bank processing, valuation and insurance costs are additional and vary by lender. Request a full bank quotation alongside your deposit calculation. Our off-plan mortgage guide explains why approval and the release of funds can happen at different stages.
Are off-plan buying costs different?
For a new purchase directly from a developer, budget for the 4% DLD registration fee unless a written offer covers it. The developer normally pays the agency commission. Confirm the separate Oqood and administration charges against your booking documents and payment plan.
An off-plan resale is different: buyer-paid agency commission can apply, and a trustee-handled transfer of AED 500,000 or more may carry a fee around AED 5,000 plus VAT, or AED 5,250. Confirm the current trustee quotation. That is not a standard charge for every new developer purchase. See which ownership documents apply at each stage.
An AED 1 million ready-property example
Assuming the buyer pays the full DLD fee and agrees to 2% agency commission:
- DLD: AED 40,000.
- Agency commission including VAT: AED 21,000.
- Trustee fee including VAT: AED 4,200.
Subtotal: AED 65,200 above the purchase price. Add the applicable government administration charges and any agreed NOC, conveyancing or mortgage costs. This subtotal excludes your mortgage deposit or remaining cash purchase payment.
Keep a separate reserve for service charges, utilities, moving and furnishing. If your whole budget is AED 1 million, our affordable off-plan guide helps you compare offers while leaving room for the extra costs.
