Selling a property in Dubai can be a lucrative decision, but it’s essential to understand the various costs and fees involved to avoid surprises and ensure a smooth transaction. Whether you’re selling an apartment in Downtown Dubai or a villa in Emirates Hills, knowing these costs will help you prepare financially and set realistic expectations.
In this comprehensive guide, we’ll break down the key costs and fees associated with selling property in Dubai.
Real Estate Agent Commission
Hiring a RERA-certified real estate agent is highly recommended for selling property in Dubai. Agents provide expertise in pricing, marketing, and negotiations, but their services come with a commission fee.
- Standard Commission: Typically 2% of the final sale price.
- Payment Terms: This is usually paid upon the successful completion of the sale.
Dubai Land Department (DLD) Transfer Fees
The Dubai Land Department requires a transfer fee for all property transactions. Although this fee is generally the buyer’s responsibility, some sellers may agree to share the cost as part of the negotiation.
- Transfer Fee Amount: 4% of the sale price.
- Admin Fee: AED 580 for properties valued below AED 500,000 and AED 4,000 for properties above AED 500,000.
No Objection Certificate (NOC) Fee
The developer’s NOC is essential for completing the property transfer. The fee for obtaining this certificate is usually paid by the seller.
- Cost: Ranges between AED 500 and AED 5,000 depending on the developer.
- Processing Time: Typically 3-7 working days.
Mortgage Clearance Fees (if applicable)
If your property is financed through a mortgage, you’ll need to clear the remaining balance before selling. This involves additional costs.
- Mortgage Release Fee: Ranges from AED 1,000 to AED 3,000.
- Penalty for Early Settlement: Some banks charge 1-3% of the outstanding loan amount for early repayment.
Service Charge Clearance Certificate
Sellers are required to clear any outstanding service charges owed to the building or community management.
- Cost of Clearance Certificate: AED 500 to AED 1,500, depending on the property and management company.
Marketing Costs
If you’re not working with an agent or want to market your property on additional platforms, you might incur advertising costs.
- Professional Photos: AED 500 to AED 1,000.
- Listing Fees: AED 500 to AED 3,000 on premium property portals like Property Finder or Bayut.
Capital Gains Tax
The UAE does not impose a capital gains tax, making it an attractive market for sellers. However, sellers must ensure all other costs and obligations are fulfilled before the transfer.
Example Calculation of Costs
Scenario: Selling an apartment in Dubai Marina for AED 2,500,000.
| Fee Type | Amount (AED) |
| Real Estate Agent Commission | 50,000 (2% of sale price) |
| DLD Transfer Fee | 100,000 (4% of sale price) |
| Admin Fee | 4,000 |
| NOC Fee | 2,000 |
| Service Charge Clearance | 1,000 |
| Total Estimated Costs | 157,000 AED |
This is an approximate figure, and actual costs may vary depending on specific circumstances.
How to Minimize Costs
- Negotiate Agent Fees: Some agents may agree to reduce their commission, especially for high-value properties.
- Price Smartly: Research market trends to set a competitive price that attracts buyers quickly and avoids prolonged holding costs.
- Choose the Right Developer: Developers with lower NOC and service fees can help reduce costs.
Why Preparation Matters
Selling a property is a significant financial transaction, and understanding the costs involved ensures you are fully prepared. By factoring in these costs, you can make better-informed decisions and achieve a seamless selling experience.At Oasis Wealth, we provide valuable insights into Dubai’s real estate market to help you make the best choices. Explore our resources on real estate in Dubai to navigate the market with confidence.
