Property cost calculation

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Buying real estate in Dubai is not just about the price of the property. There are many mandatory payments involved, such as land department fees, registration fees, broker commissions, notary fees, etc.

Below, we will take a step-by-step look at what is included in the final transaction amount and how to calculate everything correctly:

What mandatory fees exist
How they depend on the type of transaction
What mistakes brokers and buyers most often make

Mandatory fees

This is the main government fee charged when transferring ownership rights. The fee is fixed at 4%. It is paid to the Land Department when the transaction is completed. As a rule, it is paid by the buyer. Sometimes the buyer shares the cost with the seller 50/50. Sometimes developers in the Emirates offer to pay part of the fee themselves.

Fee amount: 4% of the property price

An additional fixed fee is charged:

+ 40 AED for off-plan purchases
+ 580 AED for ready-built property
+ 430 AED when purchasing land

Example calculation: Property price
1 200 000 AED, off-plan

DLD fee will be 1 200 000 × 4% + 40 48 040 AED

This is the registration of ownership rights. The registration fee depends on the price of the property. VAT (value added tax) is also charged at 5% of the fee amount.

Fee amount: For off-plan:

5,000 AED + 5% VAT — if the property is more than 500,000 AED
3,500 AED + 5% VAT — if the property is less than 500,000 AED

For ready property:

4,000 AED + 5% VAT — if the property is more than 500,000 AED
2,000 AED + 5% VAT — if the property is less than 500,000 AED

Example calculation: Property price
400 000 AED, ready

Registration fee 2 000 AED + 5% VAT 2 100 AED

The commission is usually 2% of the property price. For primary properties, the commission is paid to the broker by the developer. For secondary ready and off-plan properties, the commission is paid to the broker by the buyer. The percentage may vary by agreement between the broker and the client. VAT (value added tax) is also charged at 5% of the commission.

Commission amount: 2% of the property price + 5% VAT

Calculation example: Property price
1 900 000 AED, off-plan

Registration fee 1 900 000 × 2% + 5% VAT 39 900 AED

Additional possible expenses

Document processing

When purchasing real estate through a Trustee Office or when applying for a mortgage, an additional administrative fee is often required for the preparation of a package of documents (purchase agreement, forms from the DLD, certifications, etc.).

Amount:

From 500 to 2 000 AED depending on the office and the complexity of the transaction

Example:

In a mortgage transaction, the trustee may request 1,500 AED for preparing and checking all documents for submission to the DLD.

Power of attorney

If the buyer or seller cannot be present in person, a power of attorney must be drawn up for a representative. In Dubai, powers of attorney are drawn up by a notary public. If they are issued outside the UAE, they must be legalized by the consulate and the UAE Ministry of Foreign Affairs.

Amount:

Notarization in Dubai — from 300 AED to 500–1 000 AED
Legalization of a foreign power of attorney 2 000–3 000 AED including consular and government fees

Example:

A buyer from Germany issues a power of attorney to a broker in Dubai to sign a contract and register a transaction, paying 2 500 AED

Depository Agreement
(No Objection Certificate, NOC)

In the secondary market, the developer must issue a No Objection Certificate to confirm that the seller has no outstanding service charges or obligations to the developer. Without an NOC, the transaction cannot be registered with the DLD. The price depends on the developer, for example, Emaar — about 5,000 AED, Damac — about 1,500 AED

Amount:

500–5 000 AED

Example:

When selling an apartment in an Emaar complex, the seller pays a NOC fee of 5 000 AED, to obtain permission for the transfer of ownership rights

Example of calculating the cost of buying real estate in Dubai

Your client buys a ready apartment from the developer (Primary) for 1,200,000 AED

	Calculation	Amount
Land Department Fee (4% + 40 AED)	1 200 000 × 4% + 580 AED	48 580 AED
Registration fee (5 000 AED + 5% VAT)	4 000 AED + 5% VAT	4 200 AED
Broker commission (2% + 5% VAT)	1 200 000 × 2% + 5% VAT	25 200 AED
Document processing	1 000 AED	1 000 AED
Depository Agreement	2 000 AED	2 000 AED
Power of Attorney	1 500 AED	1 500 AED
Total 82 480 AED

Common mistakes made by brokers and buyers
when calculating the value of real estate

Ignoring all mandatory fees and payments — often only the price of the property is taken into account, while fees and commissions are overlooked, leading to an underestimation of the total transaction amount

Incorrect determination of the amount of fees. Some payments depend on the type of transaction (off-plan, ready) and the status of the property (primary or secondary), as well as the price of the property. If this is not taken into account, the final cost will be incorrect

Errors in VAT accounting — many forget to add 5% VAT to commissions and fees, which distorts the final amount.

Underestimation of additional costs — drawing up powers of attorney, preparing documents, and obtaining a No Objection Certificate are often perceived as optional, although they can affect the transaction budget.

Lack of transparency in calculations when communicating with the client — if the agent does not provide structured and understandable calculations, the buyer loses trust and conflicts arise

Mistakes and inaccuracies, if calculations are made on the fly or in a hurry, when a client asks to calculate several properties for comparison

To gain the client`s trust, they must receive a clear and complete cost calculation. From the above, we can see that the total cost of purchasing real estate in Dubai consists not only of the price of the property, but also of a number of mandatory and additional payments. An error in the calculations of even one of them can lead to misunderstandings between the parties to the transaction, delays, or increased costs for the buyer.

Calculating the total cost of a property

To avoid having to keep track of all the fees and formulas in your head or calculating them on a calculator or in Excel, use a specialized tool for calculating real estate transactions — UPPEROFFER.

UPPEROFFER is a web service that allows you to calculate the total cost of a transaction, taking into account all mandatory payments and commissions. Not only can you quickly get an accurate calculation, but you can also send it to your client in a presentable and structured form — in PDF, PNG, or as a web page with the ability to track views.

UPPEROFFER:

Takes into account the type of transaction (primary/secondary) and the status of the property (off-plan/ready)
Calculates all fees, taking into account dependencies on the price of the property
Generates a presentable calculation — PDF, PNG, or web link

Try it

Property cost calculation of an object when buying/selling

Mandatory fees

Dubai Land Department fee

Registration fee

Broker commission