Dubai’s luxury real estate market is a magnet for global investors, offering tax-free income, world-class developments, and lifestyle perks that few cities can match. But while the dream of owning a stunning villa on Palm Jumeirah or a high-rise apartment overlooking the Burj Khalifa is enticing, many buyers, especially foreign investors, overlook some important hidden costs.
In this Article, we will explore what extra expenses you need to prepare for when buying luxury property in Dubai, and how you can avoid unpleasant surprises along the way.
1. Dubai Land Department (DLD) Fees
The Dubai Land Department charges a 4% transfer fee on the property’s purchase price, payable at the time of transfer. On a high-end property worth AED 5 million, that’s AED 200,000 upfront.
Solution?
Always factor in the 4% DLD fee during your initial budgeting. Some developers occasionally offer DLD fee waivers or promotions, ask your agent if you can negotiate this into the deal.
2. Mortgage Registration Fees
If you’re financing your purchase through a mortgage, the Dubai Land Department charges a 0.25% mortgage registration fee, based on the loan amount.
Solution?
Even if you’re pre-approved, check with your mortgage advisor or bank exactly what your total out-of-pocket registration cost will be. For large purchases, even 0.25% can mean tens of thousands of dirhams.
3. Maintenance and Service Charges
Dubai’s luxury developments, especially those offering 5-star amenities like pools, gyms, security, and concierge services, come with annual service charges.
These can range anywhere from AED 15 to AED 60 per square foot, depending on the community.
Solution?
Before you buy, ask for a full breakdown of service fees. Compare fees across different projects, some newer developments might seem cheaper initially but come with higher long-term maintenance costs.
4. Furnishing and Fit-Out Costs
While some luxury properties are handed over fully furnished, many are not. High-end furnishing and interior fit-outs in Dubai can be expensive if you want to match the caliber of the property.
Solution?
If you’re buying off-plan, check if a furnished option is available. If buying ready property, budget realistically for furnishing, typically 5% to 10% of the property price for luxury-grade interiors.
5. VAT on Certain Services
While some luxury properties are handed over fully furnished, many are not. High-end furnishing and interior fit-outs in Dubai can be expensive if you want to match the caliber of the property.
Solution?
If you’re buying off-plan, check if a furnished option is available. If buying ready property, budget realistically for furnishing, typically 5% to 10% of the property price for luxury-grade interiors.
6. Currency Exchange and Transfer Fees (for Foreign Buyers)
If you are purchasing from outside the UAE, currency conversion fees and bank transfer charges can quietly eat into your budget.
Solution?
Use a specialist foreign exchange broker to secure better rates than your regular bank would offer. On large transactions, even a 1% better exchange rate can save you thousands.
How to Protect Yourself When Buying Luxury Property in Dubai?
Final Thoughts
Buying a luxury property in Dubai is one of the most rewarding investments you can make, but only if you go in fully informed. Hidden costs can quickly turn a dream purchase into a financial headache if you’re not prepared.
By understanding the full cost landscape and working with trusted advisors like Avarten Real Estate, you can protect your investment, secure the best deals, and enjoy a truly seamless property acquisition experience in one of the world’s most exciting markets.
Thinking about buying luxury real estate in Dubai?
Contact Avarten Real Estate today, and let’s turn your dream investment into a reality. As a trusted name in Dubai’s luxury property market, we specialize in connecting clients with the most prestigious developments across the city. From exclusive access to off-plan opportunities to full guidance on Golden Visa eligibility, UAE residency, and high-yield investments, we handle every step with professionalism, transparency, and care. With RERA-licensed experts, no buyer commission, and personalized service tailored to your goals, there’s no better partner to secure your future in Dubai.