The full cost of buying

One-off fees

These are the items that appear in almost every purchase. Where sources disagree, we say so and tell you to confirm the figure before you commit.

• Transfer fee: 2 percent of the price, paid to the Department of Municipalities and Transport. Some government-incentivised projects use a different rate. Buyer and seller often split it 1 percent each, but this is negotiable, and many buyers end up paying all of it.
• Title deed: about AED 1,000 to 1,500. Sources give slightly different figures.
• No objection certificate from the developer or community manager: sources report AED 500 to 5,000. Ask the seller who pays.
• Agent commission: usually 2 percent plus 5 percent VAT. It is agreed in writing before you proceed, and who pays it is negotiated.

If you take a mortgage

A mortgage adds its own charges. Banks set their own processing fees, often up to 1 percent of the loan plus VAT. A bank valuation commonly costs AED 2,500 to 3,000 plus VAT.

Mortgage registration is where sources conflict. Several current guides give 0.1 percent of the loan for Abu Dhabi, others give 0.25 percent. We have not been able to confirm the current figure from an official schedule, so check the current figure with us before you sign.

Life insurance and property insurance are usually required by the lender and are an ongoing cost.

Worked example: AED 2,000,000

Take a AED 2,000,000 apartment. The numbers below use the upper end of the ranges above and assume the buyer pays everything. Your real total can be lower if the seller shares the transfer fee or pays the commission.

• Transfer fee at 2 percent: AED 40,000.
• Title deed: about AED 1,500.
• Commission at 2 percent plus 5 percent VAT: AED 42,000.
• Cash buyer total: about AED 83,500, or 4.2 percent of the price.

Same flat with a mortgage

Now add a loan of AED 1,600,000, which is 80 percent of the price. Treat that as an example, not a promise: the maximum loan depends on your status and the Central Bank limits in our mortgage guide.

• Processing fee at 1 percent plus VAT: AED 16,800.
• Valuation at AED 3,000 plus VAT: AED 3,150.
• Mortgage registration at 0.1 to 0.25 percent: AED 1,600 to 4,000.
• Extra for the mortgage: about AED 21,500 to 24,000.
• Total at purchase: about AED 105,000 to 107,500, around 5.3 percent of the price, plus your down payment of AED 400,000.

Yearly costs

Service charges pay for building maintenance, security and common areas. Property Finder reports AED 107 to 269 per square metre a year, with premium projects higher, and a sinking fund contribution of AED 50 to 100 per square metre for major repairs. On a 100 square metre apartment, that is roughly AED 10,700 to 26,900 in service charges a year.

Ask for the last service charge invoice and the sinking fund balance before you reserve. A cheap unit with high charges is not cheap. If you let the property, factor in the municipality fee and agency costs in our owner guide.

How we are paid

Our commission follows market norms and is agreed in writing before you proceed. You will see the figure and who pays it in the paperwork before any deposit moves.

If a number in this guide differs from what a bank or the Department quotes you, trust theirs and tell us. We will update the page.

Ways to keep costs down

Some costs are fixed by the Department. Others are open to negotiation, and this is where a clear conversation helps.

• Ask who pays the transfer fee. A 1 percent split is common in guides, though not guaranteed.
• On off-plan units, ask whether the developer covers or reduces registration costs. Some do as a promotion. Get it in writing.
• Compare processing fees across banks, not only the interest rate.
• Ask for three years of service charge history on a resale unit.

Keep a reserve

Set aside a small reserve beyond the figures above. First-month costs often include furniture, utility connection and moving. None of these are fees, but they land in the same weeks as the purchase.