Cost Transparency
Costs & Fees
Transparency on costs is fundamental to informed investment decisions. Below is a comprehensive breakdown of every fee across the investment lifecycle. All figures are verified against current DLD and RERA schedules. USD equivalents shown at 1 USD = 3.65 AED.
Buying
Acquisition Costs
| Fee | Amount | Notes |
|---|---|---|
| DLD Transfer Fee (Dubai) | 4% of property value | Payable at ownership transfer |
| ADM Transfer Fee (Abu Dhabi) | 2% of property value | Payable at ownership transfer |
| DLD Admin Fee | AED 580 / $159 (apt) or AED 430 / $118 (land) | Fixed admin charge |
| Agency Fee — Off-Plan | 0% (buyer pays nothing) | Developer covers the fee |
| Agency Fee — Secondary | 2% + 5% VAT | Covers full advisory service |
| Conveyancing Fee (Secondary) | AED 3,000–6,000 / $822–$1,644 | Legal and admin for transfer |
| Power of Attorney (Secondary) | AED 2,000–4,000 / $548–$1,096 | Required for remote buyers on secondary purchases |
| Trustee Fee | AED 4,000 + VAT / ~$1,150 | Properties over AED 500K |
| Mortgage Registration | 0.25% of loan + AED 290 | Only if financing |
| Property Valuation (Mortgage) | AED 2,500–3,500 + VAT / ~$730–$1,010 | Required by bank before mortgage approval |
| Snagging (Optional) | AED 2–5/sqft ($0.55–$1.37) | Pre-handover inspection. Optional but recommended |
Ongoing
Holding Costs
| Fee | Amount | Notes |
|---|---|---|
| Service Charges | AED 10–40/sqft/year ($2.74–$10.96) | Varies by building |
| Property Management (Long-Term) | 1–3% of property value | Tenant sourcing, rent collection, maintenance coordination |
| Property Management (Short-Term) | 15–25% of rental income | Guest management, cleaning |
| Maintenance Reserve | 0.3–0.5% of value/year | Unit-level repairs. Developer warranty covers first 1–2 years on off-plan |
| Insurance | AED 1,000–3,000/year ($274–$822) | Optional but recommended |
| DEWA (Electricity & Water) | AED 500–2,000/month ($137–$548) | Typical range for a 1BR apartment. Paid by tenant |
| Cooling (District Cooling) | AED 300–1,500/month ($82–$411) | Typical range for a 1BR apartment. Paid by tenant |
| Internet & TV | AED 300–600/month ($82–$164) | Paid by tenant |
| Gas (if applicable) | AED 100–200/month ($27–$55) | Typical range for a 1BR apartment. Paid by tenant. Not all buildings have gas |
Selling
Exit Costs
| Fee | Amount | Notes |
|---|---|---|
| Agency Fee on Resale | 2% + VAT | Payable to selling agent |
| NOC | AED 500–5,000 ($137–$1,370) | Varies by developer |
| Power of Attorney (if applicable) | AED 2,000–4,000 / $548–$1,096 | Required if seller is abroad during resale |
Example
Total Cost — AED 2M Apartment
(~$548K USD)
Acquisition
AED 140K–160K
$38K–$44K (7–8%)
Annual Holding
AED 15K–30K
$4,110–$8,220 per year
Exit
AED 45K–60K
$12,330–$16,440
These numbers must be factored into every ROI calculation. An investment that looks attractive before costs may look different after them.