I’ve seen countless stories where buyers proudly celebrated their budget-friendly deal, but realised weeks later that thousands of dirhams in extra charges were waiting for them.
And they’re not alone. From Dubai Land Department fees to surprise move-in deposits, these hidden costs can pile up fast, often adding 6–8% extra to your purchase price. The problem is, most agents don’t highlight them upfront.
In this guide, I’ll walk you through every hidden cost and give you clear numbers so you know exactly what to expect. By the end, you’ll be better prepared than 90% of first-time buyers out there.
The Hidden Costs Nobody Warns You About
You know what shocks Dubai buyers more than property prices? The bill that comes after you’ve signed the dotted line.
Buying a property in Dubai isn’t just about the sticker price you see on the brochure. Many homeowners admit they were shocked at how quickly the extras stacked up.
Let’s walk through the ones that surprise people the most.
1. The Dubai Land Department (DLD) Fee Nobody Escapes
The highest top-up cost of the Dubai Land Department (DLD) registration fee of the property value which is approximately 4%, accumulated with an administration fee of AED 580-4200 that depends on your property type.
Eg: That means if your dream apartment is AED 1M, you’re already paying AED 40,000+ before even turning the key.
The added cost is immediately apparent to buyers, revealing the strain on budgets that are not pre-planned.
2. Off-Plan Buyers’ Surprise: Oqood Registration
Buying off-plan? Add another 4% of the property cost + AED 580 for Oqood registration.
3. Agency Commission – Almost Always 2%
Most agents charge 2% of the property price + 5% VAT.
Example: On an AED 1.5 million apartment, the agency fee would be AED 30,000 plus VAT.
Somehow, it may be negotiated in a few cases, but mostly, real estate agents don’t cut the standard rates.
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4. Mortgage Fees – The Silent Add-Ons
If you’re taking a mortgage, brace yourself for:
Valuation fee: AED 2,500–3,500.
Processing fee: 0.5–1% of the loan amount.
Mortgage registration fee: 0.25% of the loan amount (paid to DLD).
These fees accumulated to tens of thousands of Dirhams; however, the purchasers of the mortgage include the aforementioned charges in their calculations.
5. Service Charges – The Annual Shock
Every Dubai property has annual service charges per sq. ft.
Luxury areas (Palm Jumeirah, Downtown): AED 30–50/sq. ft.
Affordable areas (JVC, DSO): AED 10–20/sq. ft.
Example: A 1,500 sq. ft. Downtown apartment = AED 45,000/year. JVC = closer to AED 20,000.
Most new buyers only realize this after their first invoice arrives.
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6. Utility Connections & DEWA Fees
Before you move in, you’ll pay deposits for electricity, water, and cooling, usually AED 2,000–5,000+. Not massive, but still a surprise for buyers who are already stretched thin.
7. Property Insurance – Non-Negotiable with Mortgages
If you’re financing, banks require property insurance. Even if you’re a cash buyer, most seasoned owners say it’s smart. Because repair bills in Dubai are not cheap.
8. Moving-In & Community Fees – The Ones Nobody Talks About
This is where people really get caught off guard.
NOC charges
Moving permits
Elevator booking deposits
Waste disposal fees
Security deposits to the developer/management
FAQs
What are the biggest hidden costs when buying property in Dubai?
The biggest hidden charges are the agency commission, service charges, community fee, and Dubai Land Department (DLD) fees and it varies by communities.
How much should I budget for hidden costs in Dubai property purchases?
At least a proportion of 5%-7% put aside to handle the costs that are hidden from your property’s value.
Are service charges in Dubai fixed or variable?
Service charges in Dubai are variable and calculated by per square foot in communities. However, luxury areas cost AED 30-50 per square foot; on the other hand, low-level areas may differ in charges, like AED 10-20 per square foot.
Conclusion
When buying a property, the real challenge is not just the price tag. But it’s the small hidden costs that can make a big difference later. A smart buyer calculates these costs to make an informed decision. Understanding hidden costs means securing your investment and avoiding future tension.
That’s why Habico doesn’t just offer listings. It provides a clear breakdown and honest guidance at every step, so you can buy your dream home without any unpleasant surprises.
“Budget for the full journey – not just budget for the property”.