Off-Plan vs Ready in Dubai: Every Buying Cost
Buying a home in Dubai costs the same 4% registration fee whether it is off-plan or ready. What changes is everything around it. Buying off-plan from the developer adds the Oqood fee and a title deed fee at handover, and no commission. A ready purchase adds a trustee office fee and our commission of 2% plus VAT. On a home of AED 5 million, the costs come to AED 201,540 off-plan and AED 309,720 ready. Every fee here comes from the Dubai Land Department's own fee schedule. We sell off-plan at zero commission.
Fact sheet
| Off-plan from the developer | Ready, or off-plan resale | |
|---|---|---|
| Registration | 4% of the price | 4% of the price |
| Registered in | Oqood, the off-plan register | The land registry, or Oqood on an off-plan resale |
| Fixed DLD fees | AED 1,000 Oqood, AED 20 knowledge and innovation | AED 250 title deed, AED 250 map, AED 20 knowledge and innovation |
| Trustee office | None | AED 4,000 plus VAT on a ready transfer |
| At handover | AED 520 for the title deed and map | Not applicable, the home is handed over |
| Our commission | Zero | 2% plus VAT |
| Developer NOC | Not needed | Required before transfer |
| When fees are paid | At booking, and at handover | On transfer day |
| Mortgage limit | Up to 50% of the value | Up to 80% below AED 5M, 70% above, on a first home |
The total cost at three prices
The fees for a cash purchase at three prices, from the Dubai Land Department's fee schedule.
| Price | Off-plan from the developer | Ready | Difference |
|---|---|---|---|
| AED 3,000,000 | AED 121,540 | AED 187,720 | AED 66,180 |
| AED 5,000,000 | AED 201,540 | AED 309,720 | AED 108,180 |
| AED 10,000,000 | AED 401,540 | AED 614,720 | AED 213,180 |
What makes up each total
| Fee | Off-plan from the developer | Ready |
|---|---|---|
| Dubai Land Department registration | 4% | 4% |
| Oqood registration | AED 1,000 | Not charged |
| Title deed | AED 250, at handover | AED 250 |
| Map, villas and apartments | AED 250, at handover | AED 250 |
| Knowledge and innovation fees | AED 20 at booking, AED 20 at handover | AED 20 |
| Trustee office | Not charged | AED 4,000 plus AED 200 VAT |
| Our commission | Zero | 2% plus 5% VAT |
Some developers also charge an administration fee, and a fee for the NOC on a resale. Each developer sets its own.
Comparing Dubai with Abu Dhabi? Our guide to off-plan costs in Dubai and Abu Dhabi sets the two side by side.
Ask an advisor about the fees on a specific home.
Speak to an advisorThree ways to buy
Off-plan from the developer
The developer registers the sale in Oqood, the Dubai Land Department's off-plan register, within 90 days of signing. The 4% registration, the AED 1,000 Oqood fee and AED 20 fall due at booking. At handover the Oqood record converts to a title deed, for AED 250, the map for AED 250 and AED 20. The developer pays our commission, so the buyer pays none.
Every project we sell is on our Dubai off-plan hub.
Off-plan resale
A buyer can also take over an off-plan home from its first owner before handover. The developer must first issue a No Objection Certificate, once its own payment threshold is met. The buyer pays the 4% registration, and our commission of 2% plus VAT.
Ready property
A ready transfer is completed at a Real Estate Registration Trustee office. The buyer brings an Emirates ID, or a passport if living abroad, and the developer issues an e-NOC through the Dubai REST app. The seller clears the service charge before the developer issues it. The trustee office fee is AED 4,000 plus VAT on a sale of AED 500,000 or more, and AED 2,000 plus VAT below that. The buyer receives an electronic title deed and map.
With a mortgage
A mortgage adds its own registration at the Dubai Land Department: 0.25% of the loan. The trustee office fee on the mortgage differs by route.
| Off-plan | Ready | |
|---|---|---|
| Most a bank can lend | 50% of the value | 80% below AED 5M, 70% above, on a first home |
| Mortgage registration | 0.25% of the loan | 0.25% of the loan, plus AED 250 and AED 20 |
| Trustee office | AED 5,000 plus VAT | AED 4,000 plus VAT |
| On a AED 3M home at the limit | AED 9,000, on a loan of AED 1,500,000 | AED 10,470, on a loan of AED 2,400,000 |
The longest mortgage term is 25 years. Banks set their own arrangement and valuation fees, which sit outside these totals.
When each cost falls due
| When | Off-plan from the developer | Ready |
|---|---|---|
| Booking | Booking payment, 4%, AED 1,000 Oqood, AED 20 | Not applicable |
| During construction | Instalments into the project's escrow account | Not applicable |
| Handover or transfer | Final payment, AED 520 for the title deed and map | The price, 4%, AED 520, the trustee fee and the commission |
An off-plan buyer pays the registration up front and the price across construction. A ready buyer pays the price and every fee on transfer day.
After you buy
Both routes end with a title deed in the buyer's name, issued by the Dubai Land Department. The Dubai REST app holds each property in a real estate wallet, with its current price, service charges and rental information.
A home of AED 2 million or more qualifies for the 10-year Golden Visa on either route. An off-plan buyer can apply once the down payment is made. Our guide to the Golden Visa through property covers every condition. Our guide to off-plan payment plans sets out how the price is paid during construction.
Off-Plan vs Ready in Dubai: Every Buying Cost — Questions buyers ask
Is it cheaper to buy off-plan or ready in Dubai?
On a cash purchase of AED 5 million, the fees come to AED 201,540 off-plan from the developer and AED 309,720 ready. The difference is the trustee office fee and the agency commission.
What is the 4% DLD fee?
The Dubai Land Department's fee for registering a property sale, 4% of the price. It applies to off-plan and ready purchases alike, and the buyer pays it.
What is the Oqood fee?
AED 1,000, paid when the developer registers an off-plan sale in Oqood, plus AED 20 in knowledge and innovation fees.
What is the trustee fee in Dubai?
The fee charged by the Real Estate Registration Trustee office that completes a ready transfer. It is AED 4,000 plus VAT on a sale of AED 500,000 or more.
How much commission does a buyer pay in Dubai?
Through NARVA, nothing when buying off-plan from the developer, and 2% plus VAT on a resale, off-plan or ready.
What fees are paid at handover on an off-plan home?
AED 520: AED 250 for the title deed, AED 250 for the map and AED 20 in knowledge and innovation fees. The 4% is not charged again.
What does a mortgage add to the cost?
Registration at 0.25% of the loan, plus a trustee office fee of AED 5,000 plus VAT off-plan or AED 4,000 plus VAT ready.
How much can I borrow on off-plan compared with ready?
Up to 50% of the value off-plan. On a ready first home, an expatriate can borrow up to 80% below AED 5 million and 70% above.
Is there VAT on the price of a home in Dubai?
No VAT applies to the price of a new home bought from the developer, which is zero rated. VAT applies to the trustee and agency fees.
What is a developer NOC?
A No Objection Certificate the developer issues before a resale. On a ready home it is issued as an e-NOC through the Dubai REST app once the service charge is cleared.
When are the fees paid on off-plan?
The 4% and the Oqood fee at booking, and AED 520 at handover.
Do you charge commission?
Not on off-plan bought from the developer. The developer pays us.
Price your own deal
We sell in both emirates at zero commission. Send us the project and we will work out the whole bill — the percentage, the fixed fees, and the ones the tables get wrong.