One of the most common surprises for first-time Dubai buyers is the gap between the headline price and the total cash needed to complete. Transaction costs typically add several percent on top of the price, and they directly affect your true cost base — and therefore your net yield.
The main one-off costs
- DLD transfer fee: The Dubai Land Department charges a transfer fee (commonly 4% of the price) plus smaller admin and registration fees.
- Agency commission: Typically around 2% of the purchase price plus VAT where applicable.
- Registration & trustee fees: Fixed fees for the title transfer and registration process.
- Mortgage costs (if financing): Bank arrangement fees, valuation, and mortgage registration with the DLD. Use our mortgage calculator to estimate repayments.
- Conveyancing: Optional but advisable, especially for off-plan or more complex purchases.
Budgeting rule of thumb
As a planning figure, many cash buyers budget roughly 6–8% of the purchase price for total transaction costs, with mortgaged buyers adding financing-related fees on top. Confirm the exact current figures for your transaction, as fees can change.
Why it matters for returns
These costs increase the denominator in your yield calculation and lengthen your payback period, so they belong in any serious underwriting from day one. If you are also targeting residency, check how your budget interacts with the Golden Visa property route.
Figures are general and indicative, not legal or tax advice. We model full transaction economics on engagement.
Apply this lens to your own mandate with our team.
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