Buying off-plan in Dubai costs the price plus a Dubai Land Department registration fee, small DLD charges and, if you borrow, mortgage registration and bank fees. After handover you pay service charges. This guide lists each cost at booking, during construction, at handover and after, with the official fee pages, so you can budget before you sign. Every government figure links to its official source.
The full cost of an off-plan purchase in Dubai is the price of the unit plus a set of fees that are mostly fixed by the Dubai Land Department (DLD). The largest is the DLD registration fee of 4% of the property value. If you borrow, you add mortgage registration and bank fees. After handover you pay annual service charges. Everything else is small by comparison, but it adds up, so it is worth listing before you commit.
This guide walks through the costs in the order you meet them. It does not quote property prices or service charge rates, because those change. Where a figure is set by an authority, it comes from the official page and shows when it was last checked.
When you sign a sales and purchase agreement (SPA) for an off-plan unit, the developer registers the sale in DLD’s interim register through the Oqood portal. DLD’s service terms say the contract must be registered within 90 days of signing the sale and purchase contract. The registration is when the main government fee falls due.
DLD lists these fees for registering an off-plan sale: 4% of the sale value (2% from the seller and 2% from the buyer), an AED 10 knowledge fee and an AED 10 innovation fee, and AED 1,000 when the developer registers the sale in Oqood itself.
The headline percentage is the same as on a ready property sale: 4% of the property value. Who pays it is a separate question. Officially 2% seller and 2% buyer, but DLD says the 4% is paid according to the seller-buyer agreement. In off-plan sales the developer is the seller, and the SPA sets out how the fee is shared. Read that clause before you sign, and ask for the split in writing if it is not clear.
DLD adds two small fixed charges to several types of registration: AED 10 knowledge fee + AED 10 innovation fee. They appear on the DLD fee pages for initial sale registration, sale registration and mortgage registration.
Some developers add their own administration charges at booking or later. These are not government fees, so they are not listed by DLD. Ask the developer for a written list of every charge in the SPA, with what it covers and when it is payable. Dubai law also limits what a developer may charge later on. Developers may charge only DLD-approved administrative amounts on resales and other dispositions.
Your booking amount and first instalments are part of the price, not a cost on top. They must be paid into the project’s escrow account under Dubai Law No. 8 of 2007 on escrow accounts. Never pay instalments to a personal account or to a broker.
Check this first
Before you pay a booking amount, look up the project on DLD’s Project Status Enquiry and confirm the escrow account number in your SPA matches the project. The guide to Oqood registration and DLD fees explains how registration works.
During construction, most of what you pay is the price itself, in instalments set by the payment plan. DLD’s fee pages do not list recurring government fees during construction, but check your SPA for any charges the developer may pass on before handover.
If you live outside the UAE, budget for the cost of moving money. Your bank sets its own transfer charges and exchange rates, and these apply to every instalment. Ask your bank how its charges work before the first payment. Exchange rate movements also change what each instalment costs in your home currency. That is a real cost even though no one invoices you for it.
If you are buying from India, remittances for property abroad are made under the RBI Liberalised Remittance Scheme. The RBI’s answer on property is direct. Yes, LRS may be used to buy immovable property abroad. Indian tax rules may apply to the remittance, so check with a tax adviser in India and the Income Tax Department of India.
If you change your mind about a unit and the developer agrees to move you to another unit in its own projects, DLD has a service to transfer the registration fees already paid. DLD fees are charged only on any price increase when moving to another unit of the same developer.
At completion, several payments come together.
If you finance the purchase, two sets of costs apply: DLD’s fees for registering the mortgage, and your bank’s own fees.
DLD charges mortgage registration of 0.25% of the mortgage value. DLD also lists these fixed fees: AED 250 per title deed, AED 10 knowledge and AED 10 innovation fees per drawing, and a service partner fee of AED 4,000 plus VAT (AED 5,000 plus VAT for a provisional or Oqood registration). When a bank files the mortgage through DLD’s online system, DLD’s page says the fees are deducted from the bank’s account, so ask your bank whether it passes them on to you.
Banks also charge for processing, valuation and similar services. The Central Bank of the UAE sets maximum amounts for some home loan charges. For example, the fee for settling a loan early is capped at 1% of the outstanding balance or AED 10,000, whichever is less. Not every bank charge is capped, so compare fees between banks. Under the Central Bank’s Consumer Protection Standards, a bank must give you a Key Facts Statement before you sign, listing the rate and any possible fees.
For an off-plan unit, Central Bank rules cap borrowing at 50% of the property value, and some buyers pay the developer’s plan from their own funds and borrow only at handover. The guide to off-plan mortgages in the UAE explains the limits and timing.
Once you own a completed unit, these are the recurring costs to plan for.
If you buy an off-plan unit from another buyer before handover, or a completed unit on the secondary market, the cost list changes.
Reselling your own unit before handover has similar costs; the guide to selling off-plan before handover covers them.
Value added tax affects property in Dubai in three ways, according to the Ministry of Finance and the Federal Tax Authority’s real estate VAT guide.
| Supply | VAT treatment |
|---|---|
| First sale or lease of a new residential property | Zero-rated (0%) on the first supply within three years of completion |
| Later sales and leases of residential property | Exempt from VAT |
| Sale or lease of commercial property | Standard rate 5% |
Zero-rated and exempt both mean you pay no VAT on the residential price, but they work differently for the developer. Some fees around a purchase do carry VAT, such as the registration trustee’s service fee, which DLD lists with VAT added. If you are buying commercial property, or through a company, take tax advice before you commit. The guide to taxes on UAE property for individuals covers income and corporate tax.
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The purchase cost calculator adds these fees to a price you enter. It does not use market prices. Here is the method it follows, so you can check its result by hand.
Example, for an off-plan unit with a price P and a mortgage at handover of amount M:
Add currency and transfer costs if you pay from abroad. The total gives you the cash you need on top of the price, and when you need it. That timing matters as much as the total, because the registration fee falls at booking while mortgage fees and service charges come later.
One cost rarely appears on a fee schedule: what you lose if you cannot keep paying. Under the interim register law, as amended in 2020, if an off-plan buyer stops paying and does not put it right after DLD’s formal notice, the developer may end the contract and keep part of what has been paid. The amount depends on how far construction has progressed: up to 40% of the unit price if the project is 60% or more complete, or up to 25% if works have started but are below 60%.
This is why the total of the payment plan matters as much as the fees. Before you book, check that you can pay every instalment, including the handover payment, from money you already have or can reliably expect. If you are relying on a mortgage at handover, plan for a smaller loan than you hope for.
Off-plan carries risk
Projects can be delayed, plans can change and values can fall as well as rise. Read the agreement, check the project's registration and escrow account, and commit only what you can afford.
Risks of Buying Off-PlanUse this as a summary of when each cost falls. Figures come from the official pages linked above.
| Stage | Cost | Set by |
|---|---|---|
| Booking | DLD registration fee: 4% of the property value | DLD |
| Booking | Knowledge and innovation fees | DLD |
| Booking | Any developer administration charges | Developer, in the SPA |
| Construction | Instalments into escrow; bank transfer and exchange costs | Developer plan; your bank |
| Handover | Final instalment; any charges passed on at handover; utility connections | Developer; utility providers |
| Handover | Mortgage registration: 0.25% of the mortgage value plus fixed fees | DLD |
| Handover | Bank processing and valuation fees | Your bank, within Central Bank caps where they apply |
| After handover | Service charges and any master community charges | Approved by RERA |
| After handover | Contents insurance, maintenance inside the unit, leasing costs | You; Ejari fee set by DLD |
Two costs are easy to miss. The registration trustee and mortgage service partner fees carry VAT on top, as DLD’s pages show. And service charges begin from a date set by the law and your SPA, which may be before you have a tenant.
Ask for these in writing: the full list of developer charges, the fee split in the SPA, the service charge start date, and your bank’s Key Facts Statement if you will borrow. Then check each government fee against the DLD pages linked on this guide, because fees can change. For how these costs fit into the wider buying process, see the complete guide to buying off-plan in Dubai.
If you want a second pair of eyes on a fee schedule or payment plan, our payment plan and mortgage guidance service walks through it with you. Every consultation is free, with no obligation.
Your price plus Dubai Land Department and registration fees.
How we helpWe compare payment schedules and explain how UAE mortgage rules apply to off-plan purchases.
General information only
This page is general information, not legal, tax, immigration or financial advice. Rules and fees are set by the authorities and can change. Confirm the details with the authority or a licensed adviser before you act. Read our disclaimer.
The Dubai Land Department registration fee on a sale is 4% of the property value. For off-plan sales DLD also adds a knowledge and innovation fee of AED 10 knowledge fee + AED 10 innovation fee. The fee is paid when the sale is registered, so for off-plan it is part of your cost at booking, not at handover. Check the current figures on the DLD service page before you sign.
For residential property, the Ministry of Finance states: zero-rated (0%) on the first supply within three years of completion. Other residential supplies are exempt from VAT. Commercial property is different: standard rate 5%. Separately, VAT can still apply to some fees, such as the registration trustee's service fee, which DLD lists with VAT added.
Officially 2% seller and 2% buyer, but DLD says the 4% is paid according to the seller-buyer agreement. In practice the split is whatever your contract says, so read the fee clause in your sales and purchase agreement before you sign. If the clause is unclear, ask the developer or seller to confirm the split in writing.
DLD charges mortgage registration of 0.25% of the mortgage value. It also lists these fixed fees: AED 250 per title deed, AED 10 knowledge and AED 10 innovation fees per drawing, and a service partner fee of AED 4,000 plus VAT (AED 5,000 plus VAT for a provisional or Oqood registration). Your bank will also charge its own fees, such as processing and valuation. The Central Bank caps some home loan charges. For example, the fee for settling a loan early is capped at 1% of the outstanding balance or AED 10,000, whichever is less. Ask the bank for its Key Facts Statement, which lists its fees.
The recurring cost that official sources describe for owners of homes in jointly owned buildings is the service charge approved by RERA, plus any master community charges. On tax, the official position is short. There is no income tax on individuals, and their real estate investment income is not subject to Corporate Tax. Your home country may still tax rental income or gains, so check with a tax adviser where you live.
Official sources used on this page. Each was checked on the date shown.
6 min read
Oqood is the Dubai Land Department's online system for registering off-plan sales in the interim register. The developer registers your sales and purchase agreement, DLD's registration fees are paid, and you receive a provisional registration e-certificate. Registration gives your purchase legal effect: an off-plan sale that is not registered is void. At completion, the unit moves to the main register and you receive a title deed.
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You can borrow against off-plan property in the UAE, but the Central Bank caps the loan at a lower share of the value than for ready homes, and banks release funds only as construction is confirmed. Some buyers pay the developer's plan from their own funds and take a mortgage at handover. This guide explains the limits, costs, documents and timing.
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Service charges are the annual fees owners in Dubai buildings pay for running and maintaining shared areas. RERA must approve them, and each owner's share is based on the area of their unit. You can check approved rates on the DLD Service Charge Index or in the Dubai REST app before you buy. This guide explains what they cover, who sets them and when they start.
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