Hidden Costs to Watch Before Buying a New Home in the UAE (2025 Guide)

Tuesday, 21 October 2025

Buying a new home in the UAE is one of the most exciting steps in life — a moment filled with hope, planning, and new beginnings. However, beyond the property price tag, there are a few essential costs that every buyer should know about. Understanding these hidden expenses ensures a smoother experience and prevents any unexpected surprises later.

Here’s a complete guide to the key hidden costs you should plan for before buying your dream home in the UAE.

Table of Contents

• Dubai Land Department (DLD) and Registration Fees
• Real Estate Agent Commission
• Legal and Conveyancing Fees
• Mortgage-Related Fees
• Developer and No Objection Certificate (NOC) Fees
• Frequently asked questions

1. Dubai Land Department (DLD) and Registration Fees

Every property purchase in the UAE involves registration and documentation fees. The most significant of these is the Dubai Land Department (DLD) fee, which is 4% of the property’s purchase price.

While the law states this can be shared between buyer and seller, most buyers usually cover the full amount. In addition, you’ll need to pay:

• Title Deed Issuance Fee: A one-time fee for the new title deed. Fee: Approximately AED 580
• Property registration fee: AED 2,000 for properties under AED 500,000 and AED 4,000 for properties above AED 500,000
• Oqood fee for off-plan properties: Also 4% of the property price

For example, if you’re purchasing a AED 1 million home, you can expect around AED 40,000 in registration-related fees.

Tip: Always include these costs in your initial budget to avoid last-minute surprises.

2. Real Estate Agent Commission

If you are working with a real estate agent to buy your property, you’ll typically pay a commission of 2% of the purchase price, plus a 5% VAT on that amount.

For instance, a AED 1 million property would involve around AED 20,000 in agent commission.

Tip: Always confirm the exact commission amount and payment schedule with your agent before finalizing your deal.

3. Legal and Conveyancing Fees

Buying a property in the UAE involves several legal formalities, including documentation, ownership verification, and contract review. Most buyers hire a conveyancing expert or property lawyer to handle these details.

Legal and conveyancing fees usually range between AED 6,000 and AED 10,000, depending on the complexity of the transaction. If you’re taking a mortgage, your bank might also assign specific legal procedures that cost around AED 2,000.

Tip: Choose a reliable legal advisor who ensures your documents are accurate and your transaction is fully compliant.

4. Mortgage-Related Fees

For buyers planning to finance their purchase, it’s essential to factor in mortgage processing fees. UAE banks typically charge:

• Mortgage arrangement fee: 0.5% to 1% of the loan amount
• Mortgage registration fee: 0.25% of the loan value + AED 290 for the mortgage deed
• Property valuation fee: AED 2,500 – AED 3,500

If you’re buying with bank financing, you’ll also need a No Objection Certificate (NOC) from the lender at the time of transfer, costing AED 500–AED 5,000.

Tip: Ask your bank for a complete list of mortgage-related fees and always read the fine print before signing the loan offer.

5. Developer and No Objection Certificate (NOC) Fees

When buying a property, especially in the secondary market, you’ll need a No Objection Certificate (NOC) from the property’s developer to complete the ownership transfer.

These NOC fees typically range from AED 500 to AED 5,000, depending on the community and developer. Sometimes, developers may also charge transfer or service fees if the property is still under development.

Tip: Confirm who is responsible for paying the NOC fee — the buyer or the seller — and make sure it’s clearly stated in your sale agreement.

Owning a home in the UAE is an incredible milestone, and being financially prepared helps make the journey even more rewarding. By planning for the hidden costs—including government fees, agent commissions, legal charges, and mortgage-related expenses—you can ensure a stress-free buying experience and focus on what truly matters: your dream home.

Smart budgeting, proper research, and professional guidance are the keys to a smooth property purchase in the UAE. Once these details are taken care of, you’ll be ready to move into your new home with peace of mind and confidence.