Off-plan in Dubai usually costs about 4% to 7% more than the price on your contract. The biggest extra is the 4% Dubai Land Department fee, paid when your contract is registered in Oqood; the rest is admin fees, any agent fee, mortgage costs and handover costs.
This guide walks through each cost in the order you meet it, from booking to keys. It then puts the numbers in one table for AED 1M, 2M and 3M units, so you can plan your budget with no surprises. Check the current DLD rules before you sign.
Booking and the sales agreement
Most developers ask for a booking deposit when you reserve a unit. In most cases it is part of your first instalment, not an extra cost. Check the reservation form to see if the deposit is refundable and what happens if you change your mind.
Next you sign the Sales and Purchase Agreement, or SPA. The SPA sets the price, the payment plan, the unit size and the expected handover date. Read it carefully before you pay anything beyond the deposit. Look for any extra charges the developer lists.
Your instalments go into a RERA-regulated escrow account for that project, not into the developer's general account. This is one of the key protections for off-plan buyers in Dubai, and it does not cost you anything extra.
Oqood, DLD and admin fees
Off-plan contracts are registered in Oqood, the Dubai Land Department's interim register for off-plan sales. Registration costs around 4% of the property value. It is the same 4% transfer fee that buyers of ready homes pay, just collected at an earlier stage.
On top of the 4%, there is an admin or trustee office fee. For transfers this is AED 2,000 for properties under AED 500,000 and AED 4,000 above that, plus VAT. Some developers also charge their own Oqood or admin fee. Ask for the exact amount in writing before you sign.
- DLD or Oqood registration: about 4% of the price
- Trustee or admin fee: AED 2,000 or AED 4,000, plus VAT
- Developer admin fee: varies by developer
Some launches run offers where the developer pays part or all of the 4%. These offers can be worth a lot. Still, compare the full price of the unit, not just the size of the waiver.
Agent, mortgage and handover costs
When you buy a new launch direct from the developer through a registered agent, the developer often pays the agent's commission. On resale off-plan units, the buyer commonly pays an agent fee of about 2% plus VAT. Always confirm who pays the agent before you commit.
If you use a mortgage, the bank registers it with the DLD. That costs 0.25% of the loan plus about AED 290. Banks may also charge processing and valuation fees, which vary by bank. Many buyers pay the construction instalments in cash and only take a mortgage at handover.
When the building is ready, you pay the final instalment and collect the keys. A few more costs appear at this point:
- Service charges: an annual fee per square foot to run and maintain the building. The developer may ask for the first period in advance.
- DEWA deposit: a refundable security deposit to connect electricity and water, plus a small connection fee.
- District cooling: some buildings bill cooling separately and may ask for a deposit.
- Snagging inspection: an independent inspector to check the unit before you accept it. Fees vary by size.
- Title deed: once you have paid in full, the Oqood record is converted into a title deed. Ask the developer whether any fee applies.
Furniture, moving costs and, if you plan to rent the unit out, letting set-up costs come on top. Plan for these separately.
Worked example: AED 1M, 2M and 3M units
The table shows the main one-off costs. It assumes you pay the full 4%, a trustee fee of AED 4,000 plus 5% VAT, a 2% agent fee plus VAT, and a mortgage of 50% of the price at handover.
| Cost | AED 1,000,000 | AED 2,000,000 | AED 3,000,000 |
|---|---|---|---|
| DLD or Oqood (4%) | 40,000 | 80,000 | 120,000 |
| Trustee or admin fee plus VAT | 4,200 | 4,200 | 4,200 |
| Agent fee 2% plus VAT (if it applies) | 21,000 | 42,000 | 63,000 |
| Mortgage registration (0.25% of a 50% loan plus AED 290) | 1,540 | 2,790 | 4,040 |
| Total before handover costs | 66,740 | 128,990 | 191,240 |
| As a share of the price | 6.7% | 6.4% | 6.4% |
If no agent fee applies, remove that row. If you pay cash, remove the mortgage row. Then add service charges, the DEWA deposit and a snagging inspection, which vary by project. A simple rule of thumb is to keep 6% to 7% of the price aside, plus your handover costs.
You can compare payment plans and prices across Dubai off-plan projects. For a full cost sheet on a specific unit, talk to Dani.
Frequently asked questions
Is the 4% DLD fee the same as the Oqood fee?
On off-plan, yes in practice. The 4% fee is paid when your contract is registered in Oqood, so you do not pay it a second time at handover.
Do I pay an agent fee on a new launch?
Often not. On many new launches the developer pays the agent. On resale off-plan units the buyer commonly pays about 2% plus VAT, so always ask first.
When do I pay service charges?
Service charges start from handover. Some developers ask for the first period in advance when you collect the keys, so keep cash aside for it.
Fees and rules change; confirm current figures with the Dubai Land Department, GDRFA or your bank before you commit.
This article is general information about the Dubai property market, not financial advice. Prices and regulations change; ask for up-to-date details before you buy.
