The price on a launch is not the amount you will pay. Registration fees, developer charges, possible finance costs and, later, service charges all sit on top. None of them is unusual, but they arrive at different moments, and the largest one is usually due right at the start. This guide lists each cost in the order you meet it, explains who sets each official fee, and ends with an illustrative budget.
Fees below are for Dubai unless stated. Abu Dhabi and Ras Al Khaimah are covered in their own section.
What do you pay at booking and signing?
- Booking amount. Part of the price, not an extra cost, paid into the project’s escrow account. The percentage is set by the payment plan.
- Land Department registration fee. The fee to register a property sale is 4% of the sale contract value. For an off-plan sale, that is 2% for the seller (the developer) and 2% for the purchaser. The fee is shared equally unless the parties agree otherwise, and in practice the SPA often places the full 4% on the buyer. Read the fee clause and ask for the amount due at signing in writing.
- Knowledge and innovation fees. AED 10 each, added to the registration.
- Developer admin or registration charges. Many developers add their own charge for processing the sale. These vary by developer: ask for the figure before you reserve.
Some launches advertise a reduced or waived registration fee. Treat that as a commercial offer: confirm in the SPA who pays what, and remember it does not carry over if you later resell (see selling before handover).
What do you pay during construction?
Construction instalments are part of the price. The costs to plan for here are indirect:
- Currency and transfer costs if you pay from abroad. Your bank sets these.
- Late payment charges under the SPA if an instalment is missed.
- An independent progress report, only if you want one. You can request a technical audit report on a unit’s completion from the Land Department, for an auditor’s fee of AED 15,000.
What do you pay at handover?
- The completion payment. The balance due on handover under your plan. See payment plans.
- Title deed issuance. Converting your interim registration into a title deed carries administrative fees. The full 4% is not charged again. Check the exact handover fees with the developer and DLD.
- Service charges in advance. Developers commonly ask for the first service charge period at handover. The amount and timing are set in the SPA.
- Utility connection and deposits. Amounts are set by the utility provider.
- Snagging inspection. Optional, if you hire a professional inspector. Ask for quotes.
What extra costs come with a mortgage?
A mortgage is registered with the Land Department, and the borrower bears the costs of the mortgage contract unless agreed otherwise. Banks add their own arrangement and valuation fees, and may require life and property insurance.
What are the ongoing costs after the keys?
- Service charges. Annual charges for running and maintaining the building’s shared parts. In Dubai they must be approved by RERA before owners can be asked to pay, and you can look up approved rates for a project through the Land Department’s Service Charge Index.
- Letting costs, if you rent the unit out: tenancy registration and any management fee.
What are the agency fees?
A broker’s commission is set by agreement with the client. Sovereign Realty’s fee is 2%.
What does a worked example look like?
Illustrative only, not a real unit or a quote. A unit priced at AED 1,500,000 in Dubai, on a 60/40 plan with a 10% booking amount, where the SPA puts the full registration fee on the buyer.
| Item | When | Amount (AED) |
|---|---|---|
| Booking amount (10%) | Signing | 150,000 |
| Land Department registration (4%) | Signing | 60,000 |
| Knowledge and innovation fees | Signing | 20 |
| Developer admin charge | Signing | Set by the developer |
| Construction instalments (50%) | During construction | 750,000 |
| Completion payment (40%) | Handover | 600,000 |
| Title deed, service charges, utilities | Handover | Per SPA and provider |
Cash needed at signing in this example: AED 210,020 before any developer charge. If the SPA kept the official 2% split, the buyer’s share of registration would be AED 30,000 instead of AED 60,000. Every off-plan project in our database shows its payment plan, so you can run the same sums for each shortlisted launch.
How do costs differ in Abu Dhabi and Ras Al Khaimah?
- Abu Dhabi. Off-plan sale registration on DARI is 2% of the sale price (1% for Musataha), plus a AED 400 electronic services fee excluding VAT. The contract states who pays. By default, the 2% is shared equally between seller and buyer.
- Ras Al Khaimah. A completed property sale is registered at 2% from the seller and 2% from the buyer, plus AED 200 for the plan and AED 200 for the title deed. For off-plan sale registration fees, check with the RAK Land Department.
- Sharjah, Ajman, Umm Al Quwain. Registration fees are set by each emirate. Check with the relevant authority.
Projects in these emirates are on area pages such as Yas Island and Al Marjan Island.
FAQ
Do I pay the 4% again at handover?
No. The registration fee is paid when the off-plan sale is registered. At handover you pay smaller administrative fees to issue the title deed. Confirm the exact amounts with your developer.
Is the trustee office fee part of an off-plan purchase?
The service partner fee of AED 4,000 plus VAT (AED 2,000 plus VAT below AED 500,000) applies to sale registrations completed at a registration trustee office, such as a resale of a completed home. A first purchase from the developer is registered online by the developer through Oqood.
Who pays the registration fee, me or the developer?
The official split is 2% each, unless agreed otherwise. Your SPA decides, so check its fee clause before signing.
Are there annual property taxes?
Dubai does not charge an annual ownership tax on property. Tax in your home country is a separate matter: take advice there. For your UAE tax position as a foreign owner, take professional tax advice.
