Property Reservation Fees in Dubai: How Much & Are They Refundable?
Thursday, 23 October 2025
Investing in Dubai’s thriving real estate market is an exciting journey for both local and international buyers. Whether it’s a sleek apartment in Downtown Dubai or a family villa in Arabian Ranches, one of the first steps in securing your dream property is paying a reservation fee.
But what exactly is a reservation fee, how much does it cost, and can buyers get a refund if the project doesn’t go as planned? Let’s explore all the essential details about property reservation fees in Dubai and how the law protects your investment.
Table of Contents
- What Is a Property Reservation Fee in Dubai?
- How Much Is the Reservation Fee?
- Are Reservation Fees Refundable in Dubai?
- Refunds in Case of Project Cancellation
- How to Request a Refund
- Buyer Protection Under Dubai Law
- Frequently asked questions
What Is a Property Reservation Fee in Dubai?
A property reservation fee, often referred to as a booking fee, is the initial payment made by a buyer to reserve a specific unit in an off-plan or ready property. This fee shows your commitment to purchase and temporarily removes the property from the open market while the sales agreement is being finalized.
It’s usually paid directly to the developer or into an approved escrow (guarantee) account registered under the Dubai Land Department (DLD) to ensure transparency and security.
How Much Is the Reservation Fee?
The reservation fee amount in Dubai typically ranges between 5% and 10% of the total property value.
- For off-plan projects, developers may request a smaller percentage upfront with flexible post-handover plans.
- For ready properties, the amount may be slightly higher since the transaction process moves faster.
This fee is then adjusted against the first installment or down payment once the Sales and Purchase Agreement (SPA) is signed.
Are Reservation Fees Refundable in Dubai?
In most cases, reservation fees are non-refundable once paid, as they represent the buyer’s intent to purchase and compensate the developer for taking the property off the market. However, Dubai’s property laws ensure that buyers are protected in case of unforeseen circumstances such as project delays or cancellations.
Refunds in Case of Project Cancellation
When an off-plan project faces significant delays or gets cancelled, buyers have the right to claim a refund through legal channels. Dubai’s real estate authorities, including the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA), have put in place clear rules to safeguard buyer interests.
According to Dubai Law No. 8 of 2007 and Law No. 13 of 2008 (as amended by Law No. 19 of 2020):
- If a project is officially cancelled by RERA, the developer must refund all amounts received from purchasers.
- Refunds are processed through the Guarantee (Escrow) Account, which is strictly monitored by the DLD.
- The Special Tribunal for Liquidation of Cancelled Real Property Projects oversees refund settlements and ensures transparency throughout the process.
How to Request a Refund
If a project is officially cancelled, buyers can follow these general steps to request a refund:
- File a Grievance: Submit a grievance to the Judicial Committee for Cancelled Real Estate Projects, outlining the issue and requesting a refund.
- RERA Review: RERA provides a report detailing the project’s current status, financial position, and reasons for cancellation.
- Tribunal Decision: The Special Tribunal reviews the case and issues a final decision regarding refunds or compensation.
- Refund Processing: Refunds are issued from the project’s escrow account, ensuring the buyer’s payments are protected and returned appropriately.
Buyer Protection Under Dubai Law
Dubai’s real estate framework is designed to promote transparency and protect investors.
- All off-plan payments must go into DLD-approved escrow accounts.
- Developers can only access funds as construction progresses.
- In case of project delays or cancellation, refunds are processed under legal supervision, giving buyers peace of mind and confidence in their investment.
Paying a property reservation fee is a crucial step toward securing your dream home in Dubai’s competitive real estate market. While the fee is generally non-refundable, buyers can rest assured that Dubai’s property laws provide strong protection against risks such as cancellations or non-delivery.
By staying informed, verifying project registration with the Dubai Land Department, and understanding refund procedures, buyers can invest in Dubai’s property market with confidence and security.
Frequently Asked Questions (FAQs)
What is a property reservation fee in Dubai?
A reservation fee is an initial payment made to secure a specific property unit before signing the sales agreement.
How much is the reservation fee for Dubai properties?
It usually ranges between 5% and 10% of the total property price, depending on the developer and project type.
Are reservation fees refundable in Dubai?
Generally, reservation fees are non-refundable, unless the project is officially cancelled by RERA.
How do buyers get refunds for cancelled projects?
Refunds are processed through the Special Tribunal for Cancelled Real Estate Projects and the escrow account managed under DLD supervision.
How can buyers ensure their payment is safe?
Always verify that payments go into a RERA-approved escrow account and that the project is registered with the Dubai Land Department (DLD).
