Property Service Charges In Dubai And DLD Fees For 2025

Property buyers in Dubai pay some government and administrative fees such as the DLD fee which is 4% of the property value, the property registration fee which is AED 2000 +5% VAT if the property value is below AED 500,000 and AED 4000 +5% VAT of the value of the property exceeds AED 500,000. Further, service charges such as maintenance, management and the DEWA connection charges are also paid by property owners which are calculated based on per square foot of a property.

For investors and luxury enthusiasts, buying property in Dubai has become inevitable because of the luxuries, elegance and returns that this metropolitan city offers. It does not matter what your nationality or background is in view of the fact that locals, expats and foreign investors can buy and own every sort of residential and commercial real estate in one of the world’s most advanced cities.

If you desire to invest in Dubai’s real estate or buy property, it is natural because this city has showcased unprecedented development and growth over the years. It is also called a hub for business and tourism. Along with that, its advanced architecture, sophisticated living spaces and high-end amenities also fascinate home seekers. 

So, if you are looking to buy property here, you must have an idea about expenses other than its cost such as property service charges and the DLD fees. Basically, these are additional charges that are paid by a property buyer or new owner of a specific property.

As you are liable to pay these charges, you must have an understanding of these additional charges or costs before buying property to make a realistic investment decision. If you are serious about buying property in Dubai then you must give this passage a read because we will discuss all types of government fees and additional costs associated with a property purchase.

Government And Administrative Fees 

When someone buys property in Dubai, he is bound to pay some extra fees and charges set by the authorities or government. Normally, these are the charges that are paid to regulate the process and facilitate property transactions. Mainly buyers and sellers have to pay some extra costs to secure their properties and real estate-related deals. 

The Dubai Land Department normally charges 4% of the total value of the property. Legally both buyer and seller have to pay this fee but normally buyers pay this DLD fee. Basically, the Dubai Land Department aims to ensure a transparent and secure property market for both buyers and sellers. 

Here Are Some Other Administrative Charges

• As a buyer, you are also required to pay a property registration fee. If the value of your purchased property is below AED 500,000 then the property registration charges are AED 2,000 +5% VAT. On the other hand, if the cost of the purchased property is above AED 500,000 then you will have to pay AED 4,000 +5 VAT for the registration of your property.
• A property buyer also needs to pay AED 250 for the Title of the Deed. Basically, it is a legal document that certifies your ownership of this newly purchased real estate.
• AED 5000 to AED 10000 are normally charged for legal transfer of the property and other conveyancing services.
• If you have obtained a mortgage then 1% of the total mortgage amount +5% VAT is also charged by the lender.

Along with these charges, you will also pay your hired real estate agent for his professional guidance and services. Normally, these charges are around 2% of the total purchase price +5 VAT.

What Is The Property Service Charge?

When you purchase a property, you own it. So, you are bound to pay some associated charges called property service charges such as maintenance charges, dewa charges, etc. These charges are normally calculated on the basis of per square foot. But for villas, these charges are calculated based on the plot area.  It means these are determined based on the size of the property that you own and the charges per square foot are also not the same because several factors influence this cost such as location.

Factors That Influence The Cost Of Service Charges:

The price of these charges is not equal everywhere. It means the cost of these charges for a property located in Downtown Dubai will be different than the same-sized property situated in Jumeirah Village Circle. So, there are a few factors that determine the value of these charges.

• The location of a property or an area where a property is located. If a property is located in a posh or popular area then the value of services charged will be higher than a property which is located in a far-flung area
• The type of the project in a specific location because it can be a building or sub-community. So, the charges will differ based on the project type
• How a specific property is being used also influences the cost bracket. It can be a villa, retail space, commercial property or serviced apartments. Charges will be levied based on the usage of that particular property.

Following Is The List Of Services That Are Charged

• Maintenance
• DEWA (Utilities-related charges such as water, electricity, etc.)
• Management
• Insurance

Along with the above-mentioned charges, there is also a fee called the Sinking Fund. Basically, it is a reserve fund that developers charge for future repairs and maintenance.

The Average Cost Of Service Charges In Different Areas:

• International City  DH 7 per square foot
• Discovery Gardens DH 12.5 psf
• Business Bay 15 psf
• Dubai Marina 15psf
• Jumeirah Lake Towers 15 psf
• Palm Jumeirah DH 13 psf
• Downtown Dubai 11.01 psf (Charges are also different based on the project such as for Burj Khalifa charges are AED 67.88 psq, for Vida Residences Downtown AED 23,79 psf and The Address Downtown AED 41.35 psf.)

The Bottom Line:

Dubai is one of the most developed and prosperous cities. People from all over the world come here to buy residential or commercial properties for sale in Dubai. Those who are interested in investing in the property sector should have an idea about the property buying process and related additional expenses to make a prudent decision. These charges include government and administrative fees such as the DLD fee, property registration fee and the title of the Deed charges. Furthermore, there are service charges such as maintenance and DEWA connection charges that property owners have to pay here.

We Are Here To Simplify Your Property Buying Process In Dubai

Kelt and Co Realty is a prominent real estate agency in Dubai. Its professional team offers tailor-made solutions and helps you find investment properties that match your budget and preferences. With in-depth knowledge of the real estate market, Kelt and Co Realty’s team makes the property buying process hassle-free and assists you in realizing your investment dream.

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