Quick Answer
The main extra cost when buying off-plan in Dubai is the Dubai Land Department registration fee of 4% of the sale value, paid when the sale is registered on the interim register (Oqood), plus AED 10 knowledge and AED 10 innovation fees. Budget also for any developer administration fee, service charges from handover, and title deed and utility costs at completion.
The price on a project page is not the whole cost of buying off-plan in Dubai. Most of the extra money goes to one item, the Dubai Land Department (DLD) registration fee, but there are smaller charges at booking and at handover, and running costs once you own the home. This guide explains each one, who sets it and when it is paid.
Fees at a glance
| Cost | Set by | Amount | When it is paid |
|---|---|---|---|
| DLD registration fee (Oqood) | Dubai Land Department | 4% of the sale value | When the sale is registered, usually soon after the SPA |
| Knowledge and innovation fees | Dubai Land Department | AED 10 + AED 10 | With the registration fee |
| Developer administration or registration fee | Developer | Varies by developer | At booking or registration |
| Service charges | Owners association, approved by RERA | Per square foot, per year | Usually from handover |
| Title deed and handover costs | DLD and developer | Smaller fixed fees | At handover |
| Utility connection and deposits | Utility provider | Varies | At handover |
The rest of this guide explains each line.
The 4% DLD registration fee
Every off-plan sale in Dubai is recorded on the DLD's interim real estate register, known as Oqood. The DLD's fee schedule for registering an initial off-plan sale is:
- 2% of the sale value for the purchaser;
- 2% of the sale value for the seller (the developer);
- AED 10 knowledge fee and AED 10 innovation fee.
In practice, many developers ask the buyer to pay the full 4%, and some launch offers include a full or partial DLD fee waiver. Your Sale and Purchase Agreement (SPA) states who pays what, so check it before signing.
"Oqood fee" and "DLD fee" usually refer to the same 4% charge: it is not a second 4% on top. The fee is normally collected by the developer and paid to the DLD when it registers your sale, and the DLD states that the contract must be registered within 90 days of signing.
A worked example
For an apartment priced at AED 1,250,000, which is the listed starting price at Golf Trails in Emaar South, the DLD charges would be:
| Item | Amount |
|---|---|
| 4% of AED 1,250,000 | AED 50,000 |
| Knowledge and innovation fees | AED 20 |
| Total DLD charges | AED 50,020 |
That assumes you pay the full 4%. Add any developer administration fee on top.
Developer administration and registration fees
Developers register sales through the DLD's developer portal. The DLD lists an AED 1,000 fee for developers who self-register an initial sale this way, and developers often pass on this or their own administration charge to the buyer. Amounts differ by developer. For example, the published reservation requirements for Divine Al Barari are the 4% DLD fee plus AED 5,250.
Ask for the full list of charges payable at booking in writing, and check it against the SPA.
Costs during construction
While the building is under construction you mainly pay the instalments in your payment plan. Service charges normally start only once the building is complete and handed over. If you finance the purchase, your bank's own fees and any mortgage registration charges apply in addition.
Costs at handover
When the developer issues the completion notice, expect to pay:
- the remaining balance of the price under your payment plan;
- fees for issuing the title deed when your Oqood registration is converted (these are small, fixed DLD charges, not a second 4%);
- any service charges the developer or owners association collects in advance;
- utility connection charges and deposits for electricity and water;
- optionally, an independent snagging inspection before you accept the unit.
Our step-by-step buying guide explains the handover process in more detail.
Service charges
Service charges pay for the upkeep of shared areas, such as lobbies, pools, gyms, security and landscaping. In Dubai they are budgeted by the owners association and approved by the Real Estate Regulatory Agency (RERA), part of the DLD, then managed through the DLD's Mollak system. The DLD publishes approved rates per square foot through its service charge index.
For an off-plan building, the owners association does not exist yet, so any service charge figure given at launch is an estimate. Ask the developer for the estimate in writing and compare it with approved rates for similar completed buildings nearby.
VAT
Under UAE VAT law, the first supply of a new residential property is generally zero-rated, so buyers of new homes from a developer do not usually pay VAT on the price. Commercial property is treated differently. If you are unsure how VAT applies to your purchase, check with the Federal Tax Authority or a tax adviser.
If you resell before completion
Reselling an off-plan unit before handover is a new transaction. The developer usually charges a fee to issue a no-objection certificate, many developers require a minimum share of the price to be paid first, and the transfer has to be registered with the DLD with its own fees. Check the resale clause in your SPA before you buy if you might sell early.
How to budget
- Add at least 4% to the price for DLD fees unless the SPA says otherwise.
- Ask the developer for every booking-stage charge in writing.
- Keep a reserve for handover costs and the first year of service charges.
- Compare the full cost of two projects, not just their prices: a DLD fee waiver or a longer payment plan can change the picture.
For current prices and payment plans, browse off-plan projects in Dubai or read how Dubai payment plans work.
This guide is general information, not legal, tax or financial advice. Fees and regulations can change; confirm current requirements with the Dubai Land Department and your developer before you commit.
