Hidden Costs of Buying Property in Dubai in 2026

Hidden Costs of Buying Property in Dubai in 2026

Dubai is a stunning city, not just famous for shopping and lively experiences but also for its architecture and buildings. Real Estate is a major part of Dubai, and many people are always looking for opportunities to invest in property there. However, the process of making property deals in Dubai requires some essential information about how real Estate works. It also includes being aware of any hidden costs in Dubai that change from time to time. In this post, you will find all the helpful details on the current rate of hidden costs for property in Dubai in 2026. You can read all the information and shape your decision to buy property in Dubai accordingly. 

What are the Hidden Costs of Property?

When you buy property, you may have to pay some hidden costs during the process. The hidden costs of a property purchase often total 8-10% above the base price, which varies by region. It includes the Stamp Duty fee of around 5-7% and registration charges, and other significant expenses include Goods and Services Tax (GST) for under-construction homes, brokerages, legal fees, parking fees, amenity charges, and more. 

What are the Hidden Costs of Buying Property in Dubai?

The hidden costs of buying property in Dubai generally add 7-10% of the property value to the purchase price, encompassing the Dubai Land Department (DLD) transfer fee and agent commissions ( around 2%), mortgage registration (0%.25% of the loan), and conveyancing fees (around AED 5,000-1,000). There are also some other charges included in the hidden costs of buying property in Dubai, which are as follows:

Bank Processing and Valuation: Many banks charge a loan arrangement or processing fee of 0.5% to 1% of the loan amount, plus a property valuation fee of AED 2,500 to 3,500, before final approval. 

Developer NOC Fee: Sometimes, you need to pay an administrative or clearance fee at handover, as requested by the Developers. This is an example of a No Objection Certificate fee for resale properties, which can range from AED 500 to 5,000, depending on the project. 

Connection Fee: Dubai Electricity & Water Authority (DEWA) charges a refundable security deposit for water and power accounts, ranging from AED 2,000 for apartments to AED 4,000 for villas. You may get the refund for this amount when you close the account in the future. 

Property Registration Trustee Fee: A Property Registration Trustee Fee is a mandatory, fixed administrative cost in Dubai, payable to the authorised offices for processing property transfers. These fees typically range between AED 4,000 + 5% VAT, resulting in around AED 4,200 for a property valued at AED 500,000 or more. The fees increase with the increase in the value of the property you want to buy. 

Service Charges: These include charges for common areas, security, cleaning, landscaping, and other building services. Annual service charges in Dubai may range from AED 10 to AED 30 per square foot, depending on your community and amenities. 

Frequently Asked Questions 

Are there any hidden costs of buying property in Dubai?

Yes, when buying property in Dubai, you may need to pay upfront and ongoing costs beyond the purchase price. 

What are the hidden costs you have to pay while buying property in Dubai?

The hidden costs when buying property in Dubai generally range from 7% to 10% of the purchase price. 

Is the property in Dubai very expensive?

The property market in Dubai offers a wide price range, from affordable new-build apartments to ultra-luxury properties. 

What is a disadvantage of buying property in Dubai?

A significant disadvantage of buying property in Dubai is the high market volatility, which causes prices to fluctuate sharply due to economic shifts, oil prices, and high supply. 

Is it cheaper to buy property in Dubai?

You can buy cheaper property in Dubai than in many other major global cities, as Dubai offers lower entry prices and high rental yields, with zero income or capital gains taxes. 

How can I get a property in Dubai at a lower price?

To get a cheaper property in Dubai, focus on buying off-plan properties to take advantage of developer discounts, exploring distressed sales/auctions, or targeting affordable areas.