The price on the launch sheet is not what you pay. For an off-plan purchase in Dubai the extra costs are smaller than in many countries, and there is no annual property tax, but they are front-loaded and they are not negotiable. This guide lists every fee, who sets it, when it is due and what it was at the time of writing, then works a full example. Where a figure is a market norm rather than a statutory amount we say "commonly cited", and the DLD fee calculator in the Dubai REST app is the place to confirm any of them.
The fees at a glance
| Fee | Amount | Paid to | When |
|---|---|---|---|
| DLD registration (Oqood) fee | 4% of the purchase price | DLD, via the developer | With the first payment |
| DLD administrative fee | Fixed amount per registration (commonly cited at AED 40 for off-plan, AED 580 for a completed apartment) | DLD | With the registration |
| Knowledge and innovation fees | Commonly cited at AED 10 each, added to DLD fees | DLD | With each DLD fee |
| Developer administrative / Oqood processing fee | Set by developer; commonly cited at AED 1,000 to AED 5,000 | Developer | With the first payment |
| Agency commission | None on a primary sale (developer pays the broker) | – | – |
| Mortgage registration | 0.25% of the loan plus a small admin fee | DLD | At mortgage registration, usually handover |
| Bank arrangement fee | Around 1% of the loan (varies by bank) | Bank | At loan approval |
| Valuation fee | Commonly cited at AED 2,500 to AED 3,500 | Bank | Before the mortgage offer |
| Handover administrative fee | Set by developer, if any | Developer | At handover |
| Utility connection deposits | DEWA deposit commonly cited at AED 2,000 (apartment) or AED 4,000 (villa); district cooling deposit where applicable | DEWA / cooling provider | At handover |
| Service charges | AED per sq ft per year, set by approved budget | Owners' association / manager | From handover, annually or quarterly |
| Snagging inspection (optional) | Commonly cited at AED 1,000 to AED 3,000 | Inspector | Before handover acceptance |
Everything in the table is in addition to the purchase price and the instalments of the payment plan.
The 4% DLD fee
The Dubai Land Department charges 4% of the purchase price to register a property sale. On a completed property it is called the transfer fee and is paid at the trustee office on transfer day. On an off-plan purchase the same 4% is charged when your sale is registered in the interim register (Oqood), which is why you will see it called the Oqood fee.
Three practical points:
- The buyer pays it. The regulation describes the fee as shared between seller and buyer, but Dubai market practice is that the buyer pays the whole 4%, and on off-plan the developer collects it from you with the first instalment and remits it to the DLD.
- It is due upfront, not spread across the payment plan. On a AED 1.5M unit that is AED 60,000 in cash alongside your first instalment.
- "DLD fee waived" is a discount, not an exemption. The developer still pays the DLD; you are being offered a 4% price reduction dressed differently. Check that the registration takes place and that you receive the Oqood certificate. If a promotion offers the waiver only on cash purchases or only for a launch weekend, price it against any other discount on offer.
Small fixed fees attach to each DLD charge: an administrative fee per registration (commonly cited at AED 40 for off-plan registrations and AED 580 for a completed apartment) and the knowledge and innovation fees of AED 10 each. They are immaterial next to the 4% but they appear on the receipt.
The developer's administrative fee
Most developers charge a registration or administrative fee for processing the sale and the Oqood registration. It is set by the developer, commonly cited in the AED 1,000 to AED 5,000 range, and listed in the reservation form or the SPA. Ask for the exact figure before you sign, and ask whether it covers the Oqood registration or whether that is charged separately. A developer that cannot tell you the fee is telling you something.
Why there is no agency commission on a primary sale
On a resale (a secondary purchase from an existing owner) the buyer pays the broker 2% of the price plus 5% VAT. On a primary sale from a developer, the developer pays the broker's commission out of the price. The buyer pays nothing to the broker.
This matters for two reasons. First, if a broker asks you for commission on a new unit from a developer, something is wrong: either the sale is not actually primary, or the broker is being paid twice. Second, it means the advice you get from a broker on an off-plan purchase is paid for by the developer, which is exactly why our project pages show the facts from the DLD record rather than the brochure, and why we say so on every page.
Mortgage costs
Most off-plan buyers pay the construction-phase instalments in cash and, if they borrow at all, take the mortgage at or near handover, because UAE banks lend at most 50% of the value on off-plan and usually disburse only once the building reaches a required stage. The costs therefore fall at the end of the plan:
- DLD mortgage registration fee: 0.25% of the loan amount plus a small administrative fee (commonly cited at AED 290).
- Bank arrangement fee: varies; around 1% of the loan is common, sometimes capped.
- Valuation fee: commonly cited at AED 2,500 to AED 3,500.
- Life insurance on the borrower and property insurance on the unit, usually conditions of the loan.
- Early settlement fee if you repay early, capped by regulation; read the clause.
Our mortgage guide covers eligibility and the LTV limits in detail.
Costs at handover
The last instalment is rarely the last payment. Expect:
- Handover administrative fees, if the developer charges them; they should be in the SPA.
- Utility deposits: a DEWA security deposit (commonly cited at AED 2,000 for an apartment and AED 4,000 for a villa) plus connection charges, and a deposit and possibly a capacity charge for district cooling in buildings served by a cooling provider.
- A snagging inspection, which is optional but recommended on a new unit. Independent inspectors commonly charge AED 1,000 to AED 3,000 depending on size, and their report is your evidence for defects the developer must fix.
- The first service charge instalment, see below.
Service charges
Service charges fund the running of the building: security, cleaning, the gym and pool, lifts, insurance, the reserve fund for major repairs, and cooling in many towers. They are charged per square foot of your unit per year, under a budget that RERA reviews and approves, and billed by the owners' association or the management company.
Rates vary enormously by building. A mid-market apartment tower might sit in the low tens of dirhams per square foot; a serviced or branded tower with a large amenity deck can be several times that. On a 750 sq ft one-bedroom at AED 18 per sq ft the annual charge is AED 13,500, roughly 0.9% of a AED 1.5M price. That is a real number against a 6% to 7% gross yield, so look it up before you buy, not after. The DLD publishes a service charge index per building through the Dubai REST app; for a new project the developer must give you an estimate, and the SPA should state it. Our yield-on-cost tool uses the service charge as an input for exactly this reason.
Service charges start at handover. During construction you pay none.
Fees if you sell before handover
An off-plan unit can usually be resold before completion once the developer's conditions are met. The costs:
- Developer NOC fee: set by the developer, commonly cited between a few hundred and a few thousand dirhams. Many developers also require a minimum paid-up share of the price (30% to 40% is common) before they will issue the NOC.
- Trustee office fee for the transfer, commonly cited at AED 4,000 plus VAT for properties above AED 500,000.
- Agency commission at 2% plus VAT if you sell through a broker; this is now a secondary transaction.
- The buyer pays the 4% registration fee again, which affects the price you can ask.
Any capital gain is untaxed in the UAE, but check the position in your home country.
A worked example
A one-bedroom unit at AED 1,500,000 on a 60/40 payment plan, no mortgage during construction, 50% mortgage at handover.
Upfront, with the first instalment
| Item | Amount (AED) |
|---|---|
| First instalment (say 10% booking) | 150,000 |
| DLD registration fee, 4% | 60,000 |
| DLD administrative fee plus knowledge and innovation fees (commonly cited) | 60 |
| Developer administrative fee (assume 3,000) | 3,000 |
| Cash needed on day one | 213,060 |
So the first payment is about 14.2% of the price, not the 10% on the launch sheet.
At handover
| Item | Amount (AED) |
|---|---|
| Final 40% instalment | 600,000 |
| Less mortgage drawn (the AED 600,000 balance; within the 50% off-plan cap) | (600,000) |
| Mortgage registration, 0.25% of AED 600,000 plus admin (commonly cited at AED 290) | 1,790 |
| Bank arrangement fee, 1% of the loan | 6,000 |
| Valuation fee (assume 3,000) | 3,000 |
| DEWA deposit (commonly cited, apartment) | 2,000 |
| Snagging inspection (assume 1,500) | 1,500 |
| First year's service charge, 750 sq ft at AED 18 | 13,500 |
In this example the mortgage covers the final instalment, so the buyer's handover cash is the fees only, about AED 27,800, and the loan repayments begin. Without the mortgage, the handover cash is AED 600,000 plus about AED 17,000 of deposits, inspection and service charge.
Total cost of acquisition
Price AED 1,500,000 plus purchase fees of about AED 63,000 (4.2%) plus handover costs. For yield calculations we use price plus the 4.2% as the cost base, then deduct the service charge from the rent. The payment schedule tool on our tools page runs this for any project in our database with the plan the developer has published.
Fees you should not be paying
- Commission to a broker on a primary sale.
- A "booking" or "EOI" payment made to anyone other than the project's escrow account.
- A fee for "priority access" or "VIP allocation".
- Any payment in cash without a receipt that names the project and the unit.
If a cost is not in this guide and not in your SPA, ask what it is for and who receives it. Then verify the project itself with our verification checklist before the first payment goes out.
FAQ
Frequently asked questions
How much is the DLD fee on an off-plan purchase?
4% of the purchase price, paid at Oqood registration, plus small administrative amounts. It is the same rate as the transfer fee on a ready property.
Do I pay agency commission on an off-plan purchase?
No. On a primary sale the developer pays the broker. A buyer should not be asked for commission on a new unit bought from the developer; if you are, ask why in writing. Commission of 2% plus VAT is the norm on resale (secondary) purchases.
Is the DLD fee ever waived?
Developers sometimes advertise 'DLD fee waived' or 'DLD fee 50% paid'. The fee is still paid to the DLD; the developer absorbs it as a discount. Treat it as a price reduction worth 4% and check that the registration happens.
When do service charges start?
At handover, when you take possession. They are charged per square foot of the unit each year, under a budget approved by RERA, and billed by the owners' association or management company. Check the building's rate on the DLD service charge index before you buy.
What does a mortgage add to the costs?
A DLD mortgage registration fee of 0.25% of the loan plus a small administrative fee, the bank's arrangement fee (around 1% of the loan is common), a valuation fee, and life and property insurance. On off-plan the bank normally lends at handover, so these costs fall at the end of the plan.
What fees apply if I resell before handover?
A No Objection Certificate fee from the developer (set by the developer; commonly between a few hundred and a few thousand dirhams), the trustee office fee for the transfer, and secondary-market agency commission if you use a broker. The buyer from you pays the 4% registration fee again.
Can the fees be added to the payment plan?
Generally no. The DLD registration fee and the developer's administrative fee are due with the first payment, in cash. Budget for about 4% to 5% of the price upfront on top of the first instalment.
References
Sources
- Dubai Land Department, Dubai REST app (fee calculator, service charge index, project records)
- Dubai Land Department open data
- Figures marked 'commonly cited' are market norms as published by brokers and the DLD at the time of writing, not statutory amounts; the DLD fee schedule in the Dubai REST app is the authority for the current figure.
This guide is general information, not legal, tax or financial advice. Government fees and rules change; where a figure matters to your decision, confirm it with the Dubai Land Department or the relevant authority before you pay.
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