The full cost of buying off plan in Dubai, beyond the price

Budget the purchase price, then budget the transaction. In Dubai the second number is smaller than in most international markets: there is no annual property tax and no capital gains tax on residential property, but it is not zero.

At purchase

• DLD registration: 4% of the purchase price. The single largest transaction cost. Some developers absorb it as a launch incentive; treat that as a genuine discount and check it is in writing.
• Developer administration and registration charges. Typically a few thousand dirhams, varying by developer and project. Ask for the figure in writing for your specific unit.
• Buyer commission: none on off plan booked through us. The developer pays the brokerage, which is why the price you pay is the developer's price.

If you are financing

• Bank arrangement fee, typically a percentage of the loan.
• Valuation fee.
• Mortgage registration with the DLD, calculated on the loan amount.
• Life and property insurance where the lender requires it.

Confirm each of these with the lender at pre-approval, as they differ meaningfully between banks.

At handover

• The final instalment. Obvious, and still the most common cash-flow surprise.
• Service charges. Charged per square foot annually, set after completion, and highly variable by building. Amenity-heavy towers cost more to run.
• Utility connections and deposits. DEWA and cooling provider.
• Snagging survey. Optional, inexpensive, and consistently worth it.
• Furnishing. If you intend to let furnished, price it before handover.

If you let the property

Letting or management fees, maintenance, and periodic vacancy. An investment case built on gross rent and no running costs is not an investment case.

Figures and fee structures change, and several of the above are set by third parties. We put the full number in writing for your specific unit before you commit.