Cost of selling property in Dubai

How much money really lands in your account after selling a property in Dubai? Many owners focus on the sale price and feel confident at first, only to feel puzzled later when deductions begin to appear. Fees come up at different stages of the sale, sometimes quietly and sometimes all at once, and the gap between the agreed price and the final amount can feel uncomfortable without preparation. Agent charges, developer approvals, bank related payments, and transfer steps all play a role, even though nothing is hidden or unusual. Understanding these costs before listing helps the process feel calmer, supports better pricing decisions, and removes the shock many sellers experience near the end.

Key Takeaways

• Sellers must pay the agent’s commission (2%) and the Developer NOC fee, whereas the buyer covers the DLD transfer fee.
• If there’s a mortgage, the seller must pay additional fees, such as the mortgage release fee and early settlement charges.
• Off-plan properties can be sold, but sellers must comply with the developer’s terms and conditions to ensure a smooth process.
• Planning for all these costs ahead of time helps set a realistic sale price and avoids surprises during the sale.
• Understanding all the fees involved will help you avoid delays and ensure you get the best possible outcome from your sale.

What Is the Actual Cost of Selling Property in Dubai?

The actual cost of selling property in Dubai follows a clear and organised structure. Certain fees are fixed throughout the process, while others change based on the property value or the presence of a mortgage. These charges appear at different stages of the sale, which can catch sellers off guard if they have not planned in advance. A clear view of these costs helps with realistic pricing, smoother timelines, and fewer surprises as the transaction moves toward completion.

Dubai Land Department Fees

Dubai Land Department charges a 4% transfer fee based on the agreed sale price of the property. Although the fee can be shared, it is common practice in Dubai for the buyer to cover the full amount, as agreed in the Sale and Purchase Agreement. The seller does not pay the transfer fee but must still attend the trustee's office on transfer day or provide a valid Power of Attorney to complete the transaction.

Developer No Objection Certificate (NOC) Cost

A No Objection Certificate (NOC) from the developer is required before the transfer can proceed. The NOC confirms that the property has no outstanding payments, such as service charges, and that it is clear for sale.

Cost of NOC:

• The cost ranges from AED 500 to AED 5,000, plus 5% VAT, depending on the developer.
• The seller is responsible for this fee.

Sales Progression Fee

In Dubai, the buyer and seller pay AED 7,500 for the sales progression fee. This fee covers the cost of a dedicated officer who handles the property transfer process. The officer handles all the paperwork and ensures everything runs smoothly. Although it’s an added cost, it helps make the sales process faster and easier.

Real Estate Agent Commission

Most properties for sale in Dubai are handled by an agent. The agent handles marketing, viewings, buyer communication, and the paperwork needed to close the deal. In return, the seller pays a commission upon the sale of the property.

The usual real estate commission Dubai sellers pay is 2% of the sale price, plus 5% VAT on that amount.

Example:

Sale price: AED 1,500,000

Agent commission: AED 30,000

VAT on commission: AED 1,500

Total agent cost: AED 31,500

This commission is one of the main seller fees Dubai owners should expect when calculating the total cost of selling property in Dubai.

Mortgage Related Fees

Selling a property with an outstanding mortgage incurs additional costs, as the seller must pay off the loan before the sale can proceed. Below are the fees involved in clearing a mortgage during the sale process.

Mortgage Release Fee

Banks charge a mortgage release fee when the seller settles the outstanding loan. This fee usually ranges from AED 1,290 to AED 1,560, depending on the bank.

Early Settlement Charge

An early settlement charge is applied when the seller pays off the loan before the agreed term. This charge is usually 1% of the remaining loan balance, capped at AED 10,000. This can be costly, especially for sellers with larger outstanding balances.

Total Mortgage Clearance Costs

The total cost of mortgage clearance depends on the loan's outstanding balance and the bank’s terms. Sellers need to factor in the release fee and early settlement charge to understand the full financial impact.

Other Costs

Apart from agent commissions, DLD fees, and mortgage-related expenses, sellers may incur additional costs during the sale process. These fees are required to complete the transfer or make the sale smoother.

Legal or Conveyancing Support Costs

While not mandatory, some sellers prefer to hire legal or conveyancing services to ensure a smooth sale process, especially if there are complexities involved.

Legal support cost:

The cost for legal services ranges from AED 5,000 to AED 10,000, depending on the complexity of the transaction and the service provider. Non-resident owners prefer legal assistance to handle paperwork and ensure the sale goes through smoothly.

Power of Attorney Costs for Overseas Sellers

Overseas sellers use a Power of Attorney (POA) to complete the sale remotely. The POA allows a designated person in Dubai to act on the seller’s behalf.

Cost of POA:

The cost for drafting, notarising, and attesting a Power of Attorney ranges from AED 2,000 to AED 6,000, depending on the service provider and location.

How Much Money Does a Seller Take Home After Fees?

The amount a seller takes home after selling property in Dubai is lower than the sale price due to various fees. For example, with a property priced at AED 1,800,000 and a mortgage balance of AED 600,000, the seller faces costs such as agent commissions, developer fees, and mortgage-related charges. Here’s a breakdown of these expenses:

If you have a mortgage, additional costs like the mortgage release fee and early settlement charge will apply. Here’s a breakdown of these fees:

• Mortgage Release Fee: AED 1,365
• Early Settlement Charge (1% of the remaining loan balance, which is AED 10,000): AED 6,000

With a mortgage balance of AED 600,000, the total seller cost would increase to AED 48,165, leaving the seller with a net amount of AED 1,251,835. It's important to account for these costs early in the process to set a realistic sale price and avoid surprises at the end.

Conclusion

Selling property in Dubai comes with a few costs that you need to be aware of, like agent commissions, developer NOC fees, and clearing your mortgage. While the buyer takes care of DLD fees, as a seller, you’re still part of the process. Understanding these costs before you list your property helps you price it right, negotiate better, and avoid any surprises along the way. When you're prepared, the sale becomes a lot easier and more profitable with a top real estate company.

Sell Your Property in Dubai with Confidence. With our full-service real estate support, we’ll guide you through every step, from agent commissions to mortgage clearance. Reach out now for professional assistance and a seamless property sale.