What Are the Additional Costs You Must Consider When Buying an Off-Plan Property in Dubai?

Uncover the True Cost of Property Ownership Beyond the Sale Price

Are you considering buying properties in Dubai? While off-plan developments offer attractive payment plans and strong appreciation potential, many buyers overlook the extra expenses that come with the purchase. From registration fees to service charges, it’s essential to budget for more than just the price tag.

At Homesphere Real Estate, a top real estate agency in Dubai, we make sure our clients are fully informed before they sign on the dotted line. In this guide, we break down the additional costs involved in buying off-plan property so you can plan your investment smartly and confidently.

Thinking about making your next move? Explore luxury properties for sale with Homesphere Real Estate and get expert support at every step.

Dubai Land Department (DLD) Fees

The most significant upfront cost is the Dubai Land Department fee, which is mandatory for all real estate transactions in the emirate.

• 4% of the property value – Payable to the Dubai Land Department
• AED 580 Title Deed Issuance Fee – Administrative cost to process your ownership document
• AED 4,200 Oqood Fee – This is specific to off-plan properties and registers your name as the buyer in DLD records

These fees are usually paid at the time of signing the Sales and Purchase Agreement (SPA).

Tip: Some developers may offer to cover part of the DLD fee as part of a promotional deal. Homesphere Real Estate can help you negotiate the best terms.

DEWA Fees (Utility Registration)

Once your off-plan property is ready and handed over, you’ll need to register with DEWA (Dubai Electricity and Water Authority). The standard fees include:

• A refundable security deposit. For apartments, the value is AED 2,000 and for villas the value is AED 4,000
• AED 110 (electricity and water connection fee)
• AED 30 (admin fee)

These are one-time setup charges to activate your utilities. Your monthly DEWA bill, once active, will typically include:

• Electricity usage (charged per kilowatt-hour)
• Water usage (measured in cubic meters)
• Sewerage fee (a percentage of water consumption)
• Housing fee (5% of your annual rent, split monthly)
• 5% VAT applied to the total bill

Note: If your building uses district cooling (e.g., through providers like Empower or Tabreed), cooling charges may be billed separately.

Service Charges

After handover, you’ll also begin paying service charges—annual fees that cover building maintenance, security, landscaping, and shared facilities.

• These fees are charged per square foot and vary by project quality and amenities
• In Dubai, typical service charges range from AED 10 to AED 30 per sq. ft. annually

Example: For a 1,000 sq. ft. apartment at AED 15/sq. ft., you’ll pay AED 15,000 per year in service charges.

These costs are billed annually but often paid quarterly, depending on the developer or property management company. You can check your property’s RERA index to find average rates.

Developer Fees and Handover Costs

At completion, you may be asked to pay:

• Snagging/Inspection Fees (if using a third-party service)
• Final installment as per your payment plan (often 30–50%)
• Handover charges that include facility deposits or access card fees (developer dependent)

These one-time costs ensure your home is ready for occupancy and legal ownership.

Need expert guidance? Homesphere Real Estate—one of Dubai’s best real estate agencies—offers full transparency with zero hidden fees.

Furnishing and Interior Setup

Off-plan homes are delivered unfurnished. New homeowners should budget for:

• Furniture and appliances (starting from AED 30,000 for 1BRs)
• Curtains, light fixtures, and décor
• Smart home upgrades (optional)

For luxury properties, interior design packages may start at AED 100,000 and beyond.

Home Insurance

Though not mandatory, home insurance is recommended for new buyers.

• Premiums range from AED 300–700/year for apartment coverage
• Landlords may also consider landlord insurance covering rental income loss and liability

This provides peace of mind against unforeseen events.

Mortgage Costs (If Financing Your Property)

If you’re buying properties in Dubai with a mortgage, keep in mind:

• 1% arrangement fee (charged by most banks)
• Valuation fee: AED 2,500–3,500
• Life and property insurance as required by lenders
• Down payment of at least 20% (for expats)

Additionally, consider exchange rates and transfer fees if funding from overseas.

Agency Commission

When buying off-plan, buyers typically do not pay a separate agency commission. Instead, the developer compensates the real estate agency with a brokerage fee as part of the transaction. This means the price you pay remains unaffected, while you still receive expert service from Homesphere Real Estate.

Agency fees are more commonly applicable in the rental market or for purchases of secondary (ready) properties, where the buyer might pay a commission of around 5%.

 Budget Smarter for Long-Term Success

Buying off-plan is one of the best ways to secure luxury properties for sale in Dubai at favorable prices. But understanding the full cost picture is key to making a sound investment. Registration fees, DEWA setup, service charges, and furnishing can add up—but they’re all manageable with proper planning.

At Homesphere Real Estate, a leading real estate agency in Dubai, we don’t just help you find the perfect property—we help you navigate the full ownership journey.

Ready to explore your options? Contact Homesphere Real Estate today for expert advice and access to the best new developments in Dubai.

Disclaimer: All prices, fees, and rates mentioned are approximate and subject to change based on project, developer, location, and market conditions. Always confirm with official sources or your real estate advisor.