Buying a property in Dubai represents one of the most exciting investment decisions you can make, whether you're purchasing your first home, expanding your real estate portfolio, or seeking long-term financial security. However, navigating the mortgage landscape in Dubai can feel complex and overwhelming, especially if you're unfamiliar with the local regulations, banking procedures, and financial requirements. This comprehensive guide from BMW Mortgages—your trusted mortgage advisory partner in Dubai—will walk you through every step of the process, from initial eligibility assessment to final property transfer at the Dubai Land Department (DLD).
Dubai's real estate market has continued to thrive, with mortgage lending becoming increasingly accessible to both UAE residents and expatriate buyers. Whether you're an expat looking for your dream home or a UAE national seeking investment opportunities, understanding the mortgage process is essential for making informed financial decisions. Let BMW Mortgages guide you through this journey with clarity, expertise, and personalized support every step of the way.
Understanding Mortgages in Dubai: The Fundamentals
Before diving into the application process, it's important to understand what a mortgage actually is and how it works within the Dubai context. A mortgage is essentially a loan provided by a bank or financial institution to help you purchase a property. Instead of paying the full property price upfront, you borrow money and repay it over an extended period—typically 15 to 25 years—with an agreed-upon interest rate.
In Dubai, mortgages are available for both ready-to-move properties and off-plan developments. The key difference between ready properties and off-plan properties affects your loan amount and down payment requirements. Ready properties are completed and ready for immediate occupancy, while off-plan properties are still under construction and will be delivered at a future date.
Interest rates in Dubai vary depending on your residency status and financial profile. UAE residents typically benefit from rates ranging from 3% to 5%, while expatriate buyers may encounter slightly higher rates. These rates can be either fixed (remaining constant throughout your loan tenure) or variable (fluctuating based on market conditions and the Emirates Interbank Offered Rate, or EIBOR).
At BMW Mortgages, we help you understand these fundamentals thoroughly, ensuring you choose the mortgage structure that best aligns with your financial goals and risk tolerance. The mortgage process in Dubai has become more streamlined in recent years, with competitive lending rates and diverse product offerings making homeownership more attainable than ever before.
Section 1: Are You Eligible for a Mortgage in Dubai?
Understanding Eligibility Criteria for Dubai Mortgages
One of the first questions prospective buyers ask is: "Can I get a mortgage in Dubai?" The answer is yes—but eligibility depends on several factors, and requirements vary significantly between different categories of buyers. Understanding where you fit in this framework is crucial for planning your mortgage application.
Eligibility for UAE Nationals
UAE nationals enjoy the most favorable mortgage terms in Dubai. To qualify, you must:
- Be at least 21 years old (or 25 years old, depending on the lender)
- Have a valid Emirates ID and UAE passport
- Demonstrate stable employment or income for at least six months
- Maintain a monthly income of at least AED 10,000 (though many premium properties require higher income thresholds)
- Have a healthy credit score and clean payment history
- Maintain a debt-to-income ratio not exceeding 50%
UAE nationals can typically borrow up to 80% of the property value for properties valued below AED 5 million, and 70% for properties valued above AED 5 million. This favorable loan-to-value (LTV) ratio means UAE nationals need to provide smaller down payments compared to expatriate buyers.
Eligibility for UAE Residents (Expatriates with Valid Visas)
If you're an expatriate living and working in the UAE on a valid resident visa, you can access mortgage financing, though with slightly stricter requirements than UAE nationals:
- Be at least 21 years old with a valid passport and UAE residence visa
- Provide proof of employment with a reputable company
- Demonstrate a monthly income of at least AED 15,000 (or higher depending on the lender and property type)
- Show stable employment for at least six months
- Present strong credit history with the Al Etihad Credit Bureau (AECB)
- Maintain a debt-to-income ratio below 50%
Expatriate residents can typically borrow up to 75% of the property value for ready properties valued under AED 5 million, with varying terms for properties above this threshold. For off-plan properties, LTV ratios are typically lower, often around 50-60%.
Eligibility for Non-Resident Investors
Non-residents—those without UAE residency visas—face more stringent requirements but can still access mortgage financing in specific circumstances:
- Valid passport and proof of income from your home country
- Higher income threshold, often AED 25,000 monthly or more
- Approved nationality (certain countries have restrictions)
- Proof of financial stability and creditworthiness
- Down payment typically between 50-65% of property value
Critical Financial Factors Affecting Eligibility
Beyond basic criteria, lenders evaluate several financial metrics to determine your mortgage eligibility:
Debt-to-Income Ratio (DTI): This critical metric shows what percentage of your monthly income goes toward all debt obligations (mortgages, car loans, credit cards, personal loans, etc.). Most banks cap your total DTI at 50%, meaning if you earn AED 20,000 monthly, your total debt payments (including the new mortgage) cannot exceed AED 10,000.
Employment Stability: Banks require at least six months of employment history in your current role. If you're self-employed or a business owner, you'll need to provide two years of audited financial statements, business registration documents, and bank statements showing consistent income.
Credit History: Your Al Etihad Credit Bureau (AECB) report is crucial. A good credit score (typically above 600) strengthens your application and may qualify you for better interest rates. Any defaults, late payments, or high credit card utilization will negatively impact your eligibility and borrowing terms.
Age and Loan Tenure: Most banks require that you won't exceed age 60-70 by the end of your loan term. This means younger borrowers can access longer tenures (up to 25 years), while older applicants may be limited to shorter terms (15-20 years).
Section 2: Types of Mortgages Available in Dubai
Dubai's mortgage market offers diverse options to suit different financial situations, risk profiles, and investment strategies. Choosing the right mortgage type is one of the most important decisions you'll make, as it affects your monthly payments, long-term costs, and financial flexibility.
Fixed-Rate Mortgages: Stability and Predictability
A fixed-rate mortgage locks your interest rate for a specified period—commonly 1 to 5 years, though longer fixed periods are available. This means your monthly mortgage payment remains constant regardless of market fluctuations, providing exceptional predictability for budgeting and financial planning.
Key Advantages of Fixed-Rate Mortgages:
- Predictable monthly payments that don't change during the fixed period
- Protection against interest rate increases
- Ideal for first-time buyers who prefer financial certainty
- Easier budget forecasting for your personal finances
- Peace of mind knowing your mortgage cost won't escalate
Key Considerations:
- Initial fixed rates may be slightly higher than variable rates
- After the fixed period ends, rates typically convert to variable rates at prevailing market conditions
- Limited flexibility if rates decrease significantly
In Dubai, fixed rates typically range from 3% to 5% depending on your lender, loan amount, loan tenure, and residency status. At BMW Mortgages, we often recommend fixed-rate mortgages for first-time buyers and those seeking maximum payment stability.
Variable-Rate Mortgages: Market-Linked Flexibility
A variable-rate mortgage ties your interest rate to a benchmark rate—specifically the Emirates Interbank Offered Rate (EIBOR)—plus a fixed margin determined by your lender. As the benchmark rate changes, so does your total interest rate and monthly mortgage payment.
For example, if your bank offers EIBOR + 1.19% and the current 3-month EIBOR is 4.99%, your total rate would be approximately 6.18%. If EIBOR increases to 5.50%, your rate would rise to 6.69%, increasing your monthly payment accordingly.
Key Advantages of Variable-Rate Mortgages:
- Initial rates are often lower than fixed-rate alternatives
- Potential savings if market rates decrease
- Greater flexibility to refinance if rates improve
- Can be advantageous in declining rate environments
Key Considerations:
- Monthly payments can increase significantly if rates rise
- Budgeting complexity due to payment variability
- Higher risk for borrowers on tight budgets
- Exposure to interest rate risk
Variable rates in Dubai have averaged 5.5% to 7% in recent market conditions, though this varies based on EIBOR movements. Most variable-rate mortgages offer periodic rate reviews—typically annually or quarterly—when your payment amount may be adjusted.
Islamic Mortgages: Sharia-Compliant Financing
For borrowers seeking Sharia-compliant financing options, Dubai offers Islamic mortgages (also called Islamic home financing). These products comply with Islamic financial principles by avoiding interest (Riba) while still providing property financing.
The two primary Islamic mortgage structures are:
Murabaha (Cost-Plus Finance): The bank purchases the property and sells it to you at an agreed-upon price (including the bank's profit margin), which you repay in monthly installments. This simulates a traditional mortgage while maintaining Sharia compliance.
Ijara (Leasing): The bank purchases and retains ownership of the property, leasing it to you for a specified period. At the end of the lease, ownership transfers to you. Monthly payments cover the lease and gradually build your equity.
Key Advantages:
- Sharia-compliant for observant Muslim borrowers
- Similar terms and conditions to conventional mortgages
- Access to competitive rates and flexible tenures
- Wide availability from major UAE banks
Islamic mortgages in Dubai typically offer rates competitive with conventional mortgages, usually ranging from 3.5% to 5.5%, depending on the structure and lender.
Interest-Only Mortgages and Other Specialized Products
Some lenders offer interest-only mortgages where borrowers pay only interest during an initial period (typically 3-5 years), with principal repayment deferred. This results in lower initial monthly payments, making properties more accessible initially, though payments increase substantially after the interest-only period ends.
Other specialized products include stepped mortgages (payments increase gradually over time) and portfolio mortgages (for borrowers with existing property investments)
Section 3: Understanding Down Payments and Loan-to-Value Ratios
One of the most important financial aspects of purchasing property in Dubai is understanding down payment requirements and loan-to-value (LTV) ratios. These factors directly determine how much you need to save before making an offer and how much you can borrow.
Additional installments are often due as construction progresses
Loan-to-Value Ratios Explained
The Loan-to-Value (LTV) ratio expresses the loan amount as a percentage of the property's value. For example, if a property is valued at AED 1 million and you borrow AED 800,000, your LTV is 80%.
Most banks in Dubai operate within these LTV guidelines:
- UAE Nationals: Up to 80% LTV for properties under AED 5 million; 75% for properties above
- UAE Residents: Up to 75% LTV for ready properties; 50-60% for off-plan
- Non-Residents: Up to 50% LTV (with some banks offering up to 65% for premium properties)
Understanding LTV is crucial because it determines your maximum borrowing amount. If a property is valued at AED 2 million and your bank's maximum LTV for your category is 75%, the maximum loan you can obtain is AED 1.5 million (75% of AED 2 million), requiring a AED 500,000 down payment.
Total Costs Beyond the Down Payment
When budgeting for your property purchase, remember that the down payment is only part of your total financial obligation. Additional costs include:
- Dubai Land Department (DLD) Transfer Fees: Typically 4% of the property price for properties valued up to AED 2 million, with lower percentages for higher values. This fee transfers the property title to your name.
- Real Estate Agent Commission: Usually 2% of the property price (negotiable), paid by both buyer and seller.
- Bank Processing and Arrangement Fees: Typically 0.5% to 1% of the loan amount, capped at AED 25,000 with many lenders.
- Valuation Fees: Range from AED 2,500 to AED 4,000, charged by the bank to assess property value.
- Trustee/Escrow Fees: Approximately AED 4,200, paid to a third party who holds funds during the transaction.
- Mortgage Insurance (Optional): If you're concerned about repayment capacity, mortgage protection insurance costs approximately 0.4% to 0.5% annually of the loan amount.
- Property Insurance (Mandatory): Required by lenders, typically 0.05% to 0.12% annually of the property price.
- Notary and Legal Fees: If using a legal advisor, typically AED 500 to AED 2,000.
- Total Costs Estimate: For a property worth AED 2 million with a 20% down payment, expect total closing costs between AED 250,000 and AED 350,000 (including down payment, DLD fees, agent commission, and other charges).
Section 4: Essential Documents for Your Mortgage Application
Preparing the correct documentation is one of the most critical steps in the mortgage process. Incomplete or incorrect paperwork can delay your application, extend approval timelines, or even result in rejection. BMW Mortgages works with you to ensure your documentation is thorough and accurate.
Documents Required for UAE Residents (Salaried Employees)
If you're a salaried UAE resident applying for a mortgage, prepare the following documents:
Identification Documents:
- Valid passport (original + color copy)
- UAE residence visa (copy)
- Emirates ID (original + copy)
Employment and Income Documentation:
- Original salary certificate from your employer (dated within 3 months)
- Employment contract (copy)
- Last 3-6 months of salary slips (originals)
- Last 6-12 months of bank statements (showing regular salary deposits)
- If applicable, offer letter from a new employer (for recent job changes)
Financial Documents:
- Bank statements for all accounts (last 6 months minimum)
- Credit card statements (if any existing credit cards)
- Any proof of existing loans or liabilities
Property-Related Documents:
- Sale and Purchase Agreement (SPA) or Memorandum of Understanding (MOU)
- Property title deed (if already issued) or reservation certificate
- Developer's No Objection Certificate (NOC) for new properties
Documents Required for UAE Residents (Self-Employed/Business Owners)
Self-employed individuals and business owners need additional documentation to prove income stability:
- Business registration certificate and trade license
- Audited financial statements for the past 2 years
- Corporate bank statements for the past 12 months
- Personal passport, residence visa, and Emirates ID
- Personal bank statements for the past 12 months
- Business partnership agreements (if applicable)
- Tax return copies from your home country (if previously filed)
- Office/business premises lease agreement
Documents Required for Expat Non-Residents (Investors)
Non-resident investors face more stringent documentation requirements:
- Valid passport with appropriate visa status
- Proof of income from home country (employment contract, business registration, etc.)
- Bank statements from home country (6-12 months)
- Tax return or income certificate from home country
- Professional reference letters
- Proof of funds for down payment
- Previous property investment history (if any)
- Country-specific additional documentation as requested by lenders
Digital Documentation and Verification
In 2025, most banks accept digital submissions, though originals may be required later for verification. BMW Mortgages coordinates with lenders to determine their specific document format preferences—whether digital PDFs, certified copies, or originals.
Keep organized digital copies of all documents. Most banks request submissions through secure online portals, and having everything organized saves time and reduces delays.
Section 5: The Step-by-Step Dubai Mortgage Process
Now that you understand eligibility, mortgage types, and documentation requirements, let's walk through the complete mortgage process from initial inquiry to final property handover.
Step 1: Initial Financial Assessment and Pre-Planning
Before approaching a lender, assess your financial readiness:
Calculate Your Affordability: Determine how much down payment you can comfortably save. Remember, the minimum down payment varies by your category (15% to 65%), but saving more reduces your loan amount and monthly payments.
Evaluate Your Debt-to-Income Ratio: List all monthly debt obligations including car loans, personal loans, credit card minimums, and any other liabilities. Ensure your total monthly debt plus the proposed mortgage payment won't exceed 50% of your monthly income.
Check Your Credit Score: Obtain your AECB (Al Etihad Credit Bureau) credit report from www.aecb.gov.ae. This is the credit bureau used by UAE lenders. If your score is below 600, consider spending 2-3 months improving it by paying down existing debts before applying.
Identify Your Target Property Segment: Decide on property type (ready vs. off-plan), location, and approximate budget. This helps lenders understand your specific needs and provide relevant pre-approval amounts.
Step 2: Obtaining Pre-Approval from a Lender
A mortgage pre-approval (also called a "Letter of Offer" or "Approval in Principle") is a lender's confirmation that you qualify for financing up to a specific amount. Pre-approval typically takes 3-7 business days and is valid for 60-90 days.
The Pre-Approval Process:
Submit Financial Documents: Gather the documents outlined in Section 4 and submit them to your chosen lender or through BMW Mortgages.
- Credit Check: The lender pulls your AECB credit report and verifies employment with your company.
- Financial Analysis: The lender's credit officer reviews your income, expenses, existing liabilities, and calculates your maximum borrowing capacity based on lending guidelines.
Underwriting Decision: Within 3-7 days, the lender issues a pre-approval letter confirming:
- Your eligible loan amount (maximum)
- Indicative interest rate range
- Recommended property value range
- Any special conditions
Benefits of Pre-Approval:
- Clarity on Budget: You know exactly how much you can borrow and what price range to target
- Credibility with Sellers: Pre-approval demonstrates you're a serious buyer, strengthening your negotiating position
- Faster Purchase Process: Once you find a property, the mortgage process moves quickly because initial approval is already complete
- Time for Property Shopping: Pre-approval is valid for 60-90 days, giving you a window to search for the right property without pressure
Step 3: Property Selection and Offer Submission
With pre-approval in hand, you're ready to search for your ideal property:
Property Search Considerations:
- Within Budget: Focus on properties that align with your pre-approved loan amount and down payment capacity
- Bank-Approved Properties: Verify the property is acceptable to your lender (some buildings or communities may have lending restrictions)
- Property Type: Decide between ready-to-move (immediate occupancy) or off-plan (future delivery)
- Investment Potential: Consider rental yield, capital appreciation potential, and market demand
Making an Offer:
Once you've identified your desired property:
- Negotiate with the seller on price and terms
- Sign a Memorandum of Understanding (MOU) or preliminary agreement
- Pay the booking deposit (typically 5-10% of the agreed purchase price)
- Confirm the property details for your bank's requirements
Property Research Tips:
- Verify property ownership and clear title at Dubai Land Department
- Confirm developer credentials for off-plan properties
- Research the community or building for market trends and rental potential
- Check for any outstanding liabilities on the property
Step 4: Bank Valuation and Property Assessment
Once you've identified a specific property and want to proceed with financing, your bank arranges an independent property valuation:
Valuation Process:
- Valuer Appointment: The bank appoints an independent valuer registered with the Dubai Land Department
- Site Inspection: The valuer visits the property to assess its condition, size, location, and market value
- Valuation Report: Within 5-7 days, the valuer issues a report confirming the property's market value
- Lender Review: The bank uses this valuation to confirm your maximum loan amount
Important Points About Valuations:
- If the valuation comes in lower than your purchase price, the bank typically won't lend more than the valuation amount
- For example, if you agreed to buy a property for AED 2 million but it values at AED 1.8 million, your bank will only finance 80% of AED 1.8 million (AED 1.44 million), requiring a larger down payment from you
- Valuations usually cost AED 2,500 to AED 4,000, charged by the bank
- Multiple valuations aren't typical unless there's a significant dispute about property value
What Affects Property Valuations:
- Current market prices in the location
- Property age, condition, and maintenance
- Building amenities and quality
- Community reputation and infrastructure
- Recent comparable sales in the area
Step 5: Formal Mortgage Application Submission
After property valuation confirms acceptable value, you formally apply for the mortgage:
Application Submission:
- Complete Application Form: The lender provides their official mortgage application form
- Submit Full Documentation: Provide all required documents (as outlined in Section 4)
- Property Documentation: Include the SPA, valuation report, property title/reservation certificate, and NOC
- Payment Authorization: Authorize the bank to conduct background checks and employment verification
Additional Steps:
- Employment Verification: The bank contacts your employer to confirm your employment status and income
- Third-Party Checks: The lender may contact utility companies, previous landlords, or other references
- Property Inspection: The lender may conduct their own property inspection (separate from formal valuation)
Step 6: Final Mortgage Approval and Offer Letter
Within 5-15 days of formal application submission, your lender issues a formal Offer Letter (also called a Commitment Letter or Final Approval):
Offer Letter Details:
Your Offer Letter specifies:
- Loan Amount: The exact amount you're approved to borrow
- Interest Rate: Fixed or variable rate and any applicable promotional rates
- Loan Tenure: Repayment period (typically 15-25 years)
- Monthly Installment: Exact monthly payment amount
- Fees and Charges: All applicable fees including arrangement fee, life insurance, property insurance, etc.
- Rate Review Terms: When and how variable rates are reviewed
- Special Conditions: Any specific requirements before disbursement (e.g., life insurance proof, property insurance certificate)
- Validity Period: How long the offer remains valid (typically 14-30 days)
Important Actions Upon Receiving the Offer Letter:
- Review Carefully: Ensure all terms match your expectations and pre-approval discussions
- Request Clarifications: If anything is unclear, contact your lender immediately
- Compare with Other Offers: If you shopped multiple banks, compare final offers
- Accept in Writing: Sign and return the Offer Letter within the validity period
Step 7: Insurance and Final Documentation
Before proceeding to property transfer, lenders require:
Mandatory Mortgage Life Insurance:
This insurance protects against your death or permanent disability, ensuring the mortgage is paid off. Cost is typically 0.4-0.5% annually of the loan amount.
Mandatory Property Insurance:
Property/fire insurance protects the property against damage. Cost is typically 0.05-0.12% annually of the property value. Both you and the bank are named as insured parties.
Proof of Insurance Documents:
- Insurance policy documents
- Insurance certificates and receipts
- Premium payment confirmations
Step 8: Property Transfer at Dubai Land Department (DLD)
This is the critical step where property ownership officially transfers to your name and your mortgage is registered:
The DLD Transfer Process:
Pre-Transfer Coordination (Done by your agent, lawyer, or broker):
- Ensure seller has cleared all outstanding service charges
- Confirm seller has NOC from developer (for off-plan properties)
- Verify all required documents are ready
- Schedule an appointment at DLD
At the DLD Transfer Appointment (Typically 1-2 hours):
Parties Present: Buyer (you), seller, real estate agent (if applicable), and sometimes the bank representative
Document Verification: DLD staff verify all documents including:
- Property deed or reservation certificate
- SPA or sales agreement
- Buyer and seller passports and visas
- Bank's mortgage conditions
- Payment evidence
Payment Processing:
- You transfer the remaining balance to the seller (minus the booking deposit already paid)
- This is usually done via manager's cheque or bank transfer to the seller's account
- All transfer fees, registration fees, and DLD charges are paid
Mortgage Registration:
- The bank's mortgage is registered against the property title
- You receive notification of the registered mortgage
- The property title deed is handed to the bank as security for the loan
Final Documents Issued:
- Property title deed transferred to your name (held by the bank until mortgage is repaid)
- Registered mortgage document
- Official DLD transfer certificate
- New property registration confirmations
Important Transfer Details:
- Transfer Timing: The process typically takes 1-2 weeks from offer acceptance to actual DLD transfer
- Costs at Transfer: DLD fees, registration fees, and any agent commissions are settled
- Loan Disbursement: The bank transfers the loan amount directly to the seller's account or an escrow account
- Your Ownership: From this moment, you are the official property owner (with the bank holding a charge against it)
Step 9: Loan Disbursement and Completion
After DLD transfer is complete:
Bank Disbursement:
- The bank releases the mortgage funds to the seller (or their agent/lawyer)
- This typically happens within 2-5 business days after DLD transfer
- You may receive confirmation of fund transfer
Your Next Steps:
- Receive keys from the seller or developer
- Complete property handover procedures
- Register your tenancy or occupancy
- Set up utilities (electricity, water, internet, etc.)
- Arrange property maintenance and insurance coverage
Step 10: Mortgage Repayment and Ongoing Management
Your mortgage now enters the repayment phase:
Monthly Payments:
- Payments typically begin 30-45 days after loan disbursement
- Payments are automatically deducted from your designated bank account
- Each payment covers principal and interest (for amortizing mortgages)
Payment Structure:
- Fixed-rate mortgages: Consistent payment throughout the fixed period
- Variable-rate mortgages: Payments may adjust when rates are reviewed (annually or quarterly)
Ongoing Responsibilities:
- Maintain mandatory property insurance throughout the loan period
- Maintain the property in acceptable condition
- Pay service charges and community fees on time
- Inform your lender of significant life changes (job loss, major debts)
Mortgage Statement and Transparency:
- You receive annual mortgage statements showing principal paid, interest paid, remaining balance, and next year's interest rate (if variable)
- Most banks provide online account access to monitor your mortgage and make additional payments
Section 6: Mortgage Costs, Fees, and Hidden Expenses
Understanding all costs associated with your mortgage ensures better financial planning. Beyond the monthly mortgage payment, you'll encounter various fees and expenses.
Primary Mortgage Costs Breakdown
Bank Arrangement/Processing Fees
- Typically 0.5% to 1% of the total loan amount
- Capped at AED 25,000 with many lenders
- Example: On a AED 1.6 million loan, this could be AED 8,000 to AED 16,000
- Usually deducted from the loan amount or paid upfront
Valuation Fees
- Charged by the independent property valuer appointed by the bank
- Range: AED 2,500 to AED 4,000
- Paid to the bank and usually passed to the valuation company
- Non-refundable, charged even if you decide not to proceed
Life Insurance (Mortgage Protection)
- Mandatory with most lenders
- Typically 0.4% to 0.5% of the total loan amount annually
- Example: On a AED 1.6 million loan, annual cost would be AED 6,400 to AED 8,000
- Protects your family if you pass away before the mortgage is repaid
- Premium usually added to your monthly mortgage payment
Property Insurance
- Mandatory with all lenders
- Typically 0.05% to 0.12% annually of the property price
- Example: On a AED 2 million property, annual cost would be AED 1,000 to AED 2,400
- Protects the property against damage, fire, theft, and natural disasters
- Can sometimes be lower with multiple insurance quotes from your bank
Land Department and Registration Costs
Dubai Land Department (DLD) Transfer Fee
- 4% of property price for properties valued AED 500,000 to AED 2 million
- Lower percentage for properties above AED 2 million
- Example: On a AED 2 million property, DLD fee is AED 80,000
- Paid at the time of DLD transfer
- This transfers the property title from seller to you
Registration and Administrative Fees
- Approximately AED 500 to AED 1,500
- Covers DLD administrative costs and registration processing
Trustee/Escrow Fees
- Charged by the third party holding funds during the transaction
- Typically AED 4,200
- Ensures buyer funds are held safely until conditions are met
Real Estate Agent Commission
Agent Commission
- Typically 2% of the property price (negotiable)
- Example: On a AED 2 million property, commission is AED 40,000
- May be split between buyer's and seller's agents
- Can sometimes be negotiated, especially for ready properties
- Usually paid at DLD transfer
