Buying property in Abu Dhabi can be exciting, but understanding all the fees involved is crucial before you sign any contract. From government fees to service charges, these costs can add up quickly. Whether you’re a first-time buyer or an experienced investor in Abu Dhabi or Dubai, this guide will break down every fee, helping you plan your budget and avoid surprises. If you’re looking for a step-by-step roadmap, check out YourKey’s Complete Property Buying Guide for expert advice.
Abu Dhabi Municipality Fee
When purchasing a property, buyers must pay a municipality fee, typically 2% of the property value, plus 5% VAT. The fee applies to both off-plan and ready properties, and it is mandatory for all buyers registering their property with the Abu Dhabi Department of Municipalities and Transport (DMT). Understanding these charges early can save you unexpected costs, and our Property Management Services in Abu Dhabi can help manage recurring service and community fees after your purchase.
Property Registration Fees
Registering your property with the DMT involves paying registration fees, which vary depending on the property type:
- Residential property: Usually around 2–3% of the property value.
- Commercial property: May differ slightly based on location and size.
These fees ensure your ownership is legally recognized and protected. For insights into how these costs compare to rental obligations, see our blog on Tenant Rights and Rental Fees in Abu Dhabi.
Real Estate Agent Fees
Most buyers hire a real estate agent to navigate property transactions. Agent fees are generally 2% of the property sale price, though some agencies may charge slightly more or less depending on the service provided. Always confirm fees upfront to avoid surprises.
Valuation Fees
Before registration, some properties may require a valuation certificate from a licensed appraiser. This helps determine the official market value of the property and ensures accurate calculation of registration fees. Valuation fees are typically AED 2,500–AED 5,000, depending on the property size.
Mortgage Fees
If you plan to finance your property with a mortgage, expect additional costs, including:
- Mortgage arrangement fee: Usually 1% of the loan amount.
- Property insurance: Required by lenders, varying by property type and coverage.
- Processing and admin fees: Minor charges applied by banks to process the mortgage application.
Using tools like YourKey’s Complete Property Buying Guide can help you estimate these costs upfront and plan accordingly.
NOC (No Objection Certificate) Fees
Many properties in Abu Dhabi require an NOC from the developer before the sale can be completed. The cost varies depending on the developer, typically ranging from AED 500 to AED 5,000.
Service Fees / Community Fees
Once you own the property, you may be responsible for annual service fees. These cover maintenance of common areas, facilities, and security in the building or community. Service fees are usually calculated per square foot, and developers will provide an official breakdown. Using professional property management services in Abu Dhabi can help you handle these costs smoothly and avoid disputes with the developer.
Utility Connection Fees
Connecting electricity, water, and other utilities may require additional one-time fees. For example:
- DEWA connection (Dubai Electricity & Water Authority): Fees depend on property size and usage.
- Etihad Water & Electricity (Abu Dhabi): Varies for residential and commercial properties.
Legal and Documentation Fees
Some buyers choose to hire a lawyer for the property transaction. Legal fees typically range from AED 5,000–AED 15,000, depending on service scope. This ensures contracts, NOCs, and agreements comply with UAE property law.
Other Fees
- Title deed issuance
- Service contract activation fees
- Miscellaneous admin charges
Always check with your developer or agent for the most up-to-date fees. For a full breakdown and tips, refer to YourKey’s Complete Property Buying Guide.
Tips to Reduce Property Fees
- Compare agents—look for transparent commissions.
- Negotiate NOC fees—Some developers may reduce charges.
- Use mortgage comparison tools—lower arrangement fees save money.
- Plan service fees annually – Avoid surprises after purchase.
Understanding these fees can also help you better navigate rental comparisons, so explore Tenant Rights and Rental Fees in Abu Dhabi for more insights.
