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Nobody likes hidden costs, and they certainly don’t like surprise costs, so we thought we’d write a guide and tell you everything there is to know about the ins and outs of a Dubai property deal. We’ve had occasions when buyers have thought the only thing they have to pay is the cover price, but there are other costs as well, and it’s important you factor these in  and are well prepared before making your move in the Dubai property market.

The first thing to note is that this varies depending on the type of property that you’re buying. If it’s straight from the developer it will be different than if you’re buying from an individual. For a normal purchase of an existing property bought from an individual, here’s what you need to know:

Dubai Land Department Transfer and Registration Fees (for completed properties) – 4% plus 580 AED. This is paid directly to the DLD for the transfer of ownership.

Dubai Land Department Trustee Fees – An additional 4,200AED.

Agent fee – 2% plus VAT.

NOC – A no objection certificate has to be paid by the seller. This is a note from the developer who owns the building showing that the seller has paid all their debts, services charges and that there is no liability on the property before the sale. The developer has to sign this off and the cost can vary from 525 AED to 5250 AED.

Utilities/Water – The new owner has to pay a deposit with Dubai Electricity and Water (DEWA) to register a new connection to the property, and there will also be costs associated with an AC/chiller or cooling system. These are relatively inexpensive and can vary across properties.

Service fees – if your new property comes with parking, a pool and buildings and grounds maintenance, there will be a service fee. Again, these vary but should be very clearly explained by the seller/developer.

Off-plan property – if you’re buying a property off-plan, many of the costs remain the same, except the trustee fees with the DLD increases to 5,250 AED. There are no service charges until the property is yours.

Rental market

If you’re renting a property in Dubai, there are also costs that you should be aware of. They include:

Agent Fee – This is usually 5% plus VAT each payment.

Deposit – The landlord usually requires 5-10% of the annual rent in advance. If the property is furnished they might ask for more.

Utilities/services – the tenant will have to register the property in their name and will be responsible for all bills associated to the property.