Off-plan vs. bestaande bouw in Dubai: welke kosten komen erbij?

The cost of buying property in Dubai: more than just the purchase price

You've found a beautiful apartment in Dubai. The price is set, the location is perfect and the returns look promising. But before you sign, it's essential to know: what additional costs come with the purchase?

In Dubai, purchase costs differ significantly between off-plan (new build, directly from the developer) and resale (secondary market, from a previous owner). If you don't factor these costs into your return calculation, an investment that looks great on paper may underperform in practice.

In this article, we compare all cost items for both scenarios side by side. Use our ROI Calculator to directly compare both scenarios with your specific property and purchase price.

Overview: costs off-plan vs. resale

Below is an overview of the main one-time purchase costs in Dubai:

• DLD Transfer Fee: 4% of the purchase price (both scenarios)
• DLD Admin Fee: AED 580 (apartments) or AED 430 (villas)
• Agent commission: 0% (off-plan) or 2% (resale)
• Oqood registration: 4% (off-plan, in lieu of DLD) or N/A
• NOC fee: N/A (off-plan) or AED 500–5,000 (resale)
• Trustee fee: AED 4,000 (apartments) or AED 2,000 (villas)
• Mortgage registration: 0.25% of the loan amount (if applicable)
• Valuation report (mortgage): AED 2,500–3,500

Dubai Land Department (DLD) Transfer Fee: 4%

The DLD Transfer Fee is the largest one-time cost when purchasing property in Dubai: 4% of the purchase price, payable to the Dubai Land Department upon registration of the title transfer.

For an apartment priced at AED 1,500,000, you would pay AED 60,000 in DLD fees. This applies to both off-plan and resale, with one important distinction:

• For resale properties, you pay the 4% DLD fee at the transfer at the trustee's office
• For off-plan, you typically first pay an Oqood registration (also 4% of the purchase price), which is converted to a full title deed upon completion

Some developers offer promotions where they cover the DLD fee. This sounds attractive, but check whether the asking price has been raised to compensate.

Off-plan specific: the Oqood registration

Oqood is the online registration system of RERA (Real Estate Regulatory Authority) for off-plan projects. When purchasing an off-plan property, the transaction must be registered in Oqood — this provides you with legal protection as a buyer.

The Oqood registration fee is 4% of the purchase price. In most cases, this is offset against the later DLD Transfer Fee upon completion. However, it is a cash flow item to account for at the time of purchase.

Other off-plan-specific considerations:

• Payment plan: Off-plan properties often come with attractive payment plans (20% upon signing, the remainder during construction). This lowers the initial capital requirement.
• Developer fees: Some developers charge additional administration fees or require a small "booking fee" of AED 5,000–25,000 upon reservation.
• Service charge escrow: Upon completion, you pay service charges in advance, typically for 1 year.

Resale specific: agent commission and NOC

Agent commission: 2%

When purchasing a resale property through an agent, you as the buyer typically pay a commission of 2% of the purchase price to the agent (buyer's agent). This is standard practice in Dubai and legally mandated.

Note: for off-plan purchases directly from the developer, you as the buyer pay no agent commission. The developer pays the agent directly. This represents a significant cost difference for higher-value properties.

No Objection Certificate (NOC)

When selling an existing property, the seller must obtain a NOC (No Objection Certificate) from the developer. This certificate confirms that there are no outstanding debts on the property (service charges, mortgage, etc.).

The NOC fee varies by developer: from AED 500 to AED 5,000. In most cases, this is a cost borne by the seller, but it is always advisable to confirm this in the sale agreement (MOU/Form F).

Trustee fee for title transfer

Title transfers in Dubai are processed through a Registered Trustee — a DLD-authorised transfer centre. The trustee fee is:

• AED 4,200 for apartments and commercial properties
• AED 2,100 for villas and land plots

This is a fixed cost that always applies, regardless of whether you are buying off-plan or resale.

Mortgage costs (if financed)

Buying with a mortgage? Additional costs apply:

• Mortgage registration: 0.25% of the loan amount + AED 290 admin fee
• Mortgage arrangement fee: 1% of the loan amount (varies by bank)
• Valuation report: AED 2,500–3,500 (appraisal by a certified valuer)
• Life insurance: Required by most Dubai mortgage providers; costs vary

Mortgages are available for non-residents of Dubai, but with more restrictions: maximum LTV is typically 50–65% for non-residents, compared to 75–80% for residents.

Total overview: off-plan vs. resale costs

Let's compare the costs for an apartment priced at AED 1,500,000 (approximately €375,000):

Off-plan (cash purchase, no mortgage)

• Oqood/DLD fee: AED 60,000 (4%)
• Trustee fee: AED 4,200
• DLD admin: AED 580
• Agent commission: AED 0
• Total additional costs: AED 64,780 (~€16,200)

Resale (cash purchase, no mortgage)

• DLD Transfer Fee: AED 60,000 (4%)
• Agent commission (buyer): AED 30,000 (2%)
• Trustee fee: AED 4,200
• DLD admin: AED 580
• NOC (typically seller's cost, but verify): AED 0–5,000
• Total additional costs: AED 94,780 (~€23,700)

The difference is significant: resale costs you nearly AED 30,000 more in one-time fees at the same purchase price. You'll need to recoup this through rental yields — which amounts to roughly 1.5–2 extra months of rent.

Which scenario is better?

The choice between off-plan and resale depends on several factors:

• Cash flow: Off-plan often offers more favourable payment plans, keeping your capital working longer
• Immediate returns: Resale delivers rental income right away; off-plan only after completion (1–4 years)
• Risk: Off-plan carries construction risk — although regulated through escrow and RERA
• Capital appreciation: Off-plan often offers potential for value growth during the construction period
• Costs: Off-plan has lower purchase costs; resale offers immediate certainty

Compare both scenarios in the ROI Calculator

The best way to decide is to run both scenarios with your specific numbers. Our ROI Calculator for Dubai property lets you compare off-plan and resale side by side — including all one-time costs, annual expenses and the expected net return over 5 and 10 years.

Conclusion

When buying property in Dubai, the additional costs are substantial: expect 4.5–8% of the purchase price in one-time fees, depending on the type of purchase. This must always be factored into your return calculation.

Off-plan is generally cheaper in purchase costs and offers flexible payment plans, but does not generate immediate returns. Resale is more expensive at acquisition but delivers instant cash flow. The best choice depends on your personal situation and investment horizon.

Have questions about a specific property or want personalised advice? Get in touch via WhatsApp — we'll help you make the right choice.