The Cost of Buying Property in Dubai – A Complete 2026 Financial Guide

Buying property in Dubai is often described as “tax-free,” but smart buyers know that every real estate market has a cost structure. While Dubai does not charge annual property tax or capital gains tax, buyers must account for government fees, registration costs, financing expenses, and ongoing service charges.

This guide explains exactly how much it costs to buy property in Dubai in 2026, how those costs compare internationally, and how different property types — including Avenew developments in Dubai South and Dubai Islands — fit into this financial framework.

What Is the Real Cost of Buying Property in Dubai?

Most buyers in Dubai should budget between 7% and 8% of the property price in additional costs on top of the purchase value.

These costs are:

• One-time transaction fees

• Government registration charges

• Brokerage and legal costs

• Mortgage fees (if applicable)

Dubai remains one of the lowest-cost markets globally for entering prime real estate — especially compared to cities like London or New York, where total buyer costs can exceed 12–15%.

1. Property Purchase Price

Your base cost is the property price itself, which varies based on:

• Community

• Developer

• Property size and layout

• Views and amenities

Typical Dubai entry points in 2026:

Mid-market and lifestyle communities such as Dubai South (home to Avenew 888) and Dubai Islands (home to Avenew’s beachfront developments) offer some of the best value-to-growth ratios for buyers who want appreciation without paying luxury-district premiums.

here's complete buying guide for Dubai properties, Buy Property in Dubai in 2026.

2. Dubai Land Department (DLD) Fee — 4%

Dubai charges a 4% property transfer fee, paid once at purchase.

This fee registers the property in your name and gives you full legal ownership.

Formula:
Property price × 4%

Example:
AED 1,500,000 × 4% = AED 60,000

This applies to:

• Ready properties

• Resales

• Off-plan purchases (via Oqood registration)

Every Avenew project — whether in Dubai South or Dubai Islands — is registered through this same government system.

are you looking for high ROI property investment options, read our guide: Best Real Estate Investment Opportunities for 2026.

3. Title Deed, Trustee & Registration Fees

In addition to the 4%, buyers must pay administrative government charges:

These are paid once and ensure your ownership is officially recorded.

4. Real Estate Agent Fees

Standard rate:
2% of purchase price + 5% VAT

Example:
AED 1.5M property → AED 31,500

When buying directly from a developer such as Avenew, this fee is often reduced or embedded in the pricing — which lowers the effective cost for buyers compared to resale purchases.

5. Mortgage Costs (If You Use Financing)

If you finance your purchase:

Important:
Dubai banks do not allow DLD or agent fees to be included in the mortgage — meaning buyers must have cash reserves for these costs.

6. Down Payment Requirements

Off-plan projects such as Avenew 888 and Avenew’s Dubai Islands developments use developer payment plans, allowing buyers to enter the market with far less upfront cash than a traditional mortgage purchase.

7. Ongoing Ownership Costs

After handover, owners pay:

Service Charges

Covers:

• Maintenance

• Security

• Cleaning

• Landscaping

• Amenities

Typical range:
AED 12–40 per sq ft annually

Beachfront projects on Dubai Islands tend to be higher due to resort amenities, while master-planned communities like Dubai South are generally more cost-efficient.

Dubai Housing Fee

Collected via DEWA (utilities): 5% of annual rental value

8. Example: True Cost of Buying a AED 1.5M Apartment

Total entry cost ≈ AED 1,622,500

here's property valuation tips for buyers: Valuing Property in Dubai.

Why Dubai’s Cost Structure Attracts Global Buyers

Dubai has:

• No annual property tax

• No capital gains tax

• No income tax on rent

• No inheritance tax

This means your costs are front-loaded, not recurring — ideal for investors and long-term owners.

Projects in growth districts such as Avenew 888 in Dubai South or Avenew’s beachfront communities on Dubai Islands benefit most from this model, as owners keep more of their rental income and capital gains.

Final Verdict

The cost of buying property in Dubai is transparent, predictable, and globally competitive.

With total transaction costs averaging just 7–8%, Dubai remains one of the most financially efficient cities in the world for owning real estate — especially when buying through modern, master-planned developments like those delivered by Avenew.