Costs and Fees of Buying in Dubai

The main purchase cost in Dubai is the Dubai Land Department transfer fee of 4% of the price, plus registration fees and annual service charges. Below is the full picture.

How is the real return calculated after all costs?

Net return accounts for purchase fees, service charges, management, vacancy, furnishing and selling costs on exit. Ovation provides a full cost-of-ownership sheet with each proposal.

What is the total cost of buying property in Dubai?

Budget for the Dubai Land Department transfer fee (4% of the price), title-deed and registration/admin fees, trustee office fees on resale, mortgage registration if financed, and agency commission on resale. Off-plan purchases carry a registration fee on the sale contract with the developer. Ovation issues a line-by-line cost sheet.

Are there hidden costs or annual service charges?

Annual service charges are set per building and published through the official RERA service-charge index, plus utilities (DEWA), district cooling where applicable, and Dubai Municipality housing fee via DEWA. Ovation shows each before you commit.

What is the DLD 4% fee and who pays it?

The Dubai Land Department transfer fee is 4% of the purchase price. Customarily the buyer pays it; some developers run promotions covering part of it. It is paid at registration (Oqood for off-plan, title transfer for ready).

Do I pay VAT on residential property?

First supply of new residential property is zero-rated and subsequent residential supplies are generally exempt under UAE VAT law; commercial property attracts 5% VAT. Agency commissions and some services carry VAT.

What are annual ownership costs?

Service charges, utilities and cooling, the municipality housing fee via DEWA, insurance, and management fees if leased. There is no annual property tax for owners.