BUYER & SELLER GUIDES
What Does It Cost to Buy Property in Abu Dhabi? Fees Explained
Buying property in Abu Dhabi usually costs around 4% to 5% on top of the price. The main items are the 2% sale registration fee, an agent commission (market norm 2% plus VAT) and, with a mortgage, 0.1% mortgage registration plus bank valuation and arrangement fees. On an AED 2,000,000 apartment, our worked example below comes to about AED 83,000 for a cash buyer and about AED 103,400 with a mortgage.
Last reviewed by the ODZ Properties advisory team
KEY TAKEAWAYS
- Buying property in Abu Dhabi usually costs about 4% to 5% on top of the price.
- The largest item is the 2% sale registration fee; agent commission is commonly 2% plus 5% VAT, though it is not a legal rate.
- A mortgage adds 0.1% of the loan in registration plus bank valuation and arrangement fees.
- On an AED 2,000,000 apartment, ODZ’s worked example comes to about AED 83,000 for a cash buyer and AED 103,400 with a mortgage.
AT A GLANCE
- Sale registration fee
- 2% of the property value
- Mortgage registration
- 0.1% of the loan, paid by the buyer
- Title deed
- About AED 1,000
- Bank valuation
- AED 2,500–3,000 plus VAT
- Bank arrangement fee
- Up to 1% of the loan plus VAT
- Agent commission
- Market norm 2% plus 5% VAT (not a legal rate)
How much is the property registration fee in Abu Dhabi?
The sale registration (transfer) fee is 2% of the property value. Its legal basis is Executive Council Resolution No. 49 of 2018, which allows a range of 1% to 4%; 2% is the rate applied now. It is paid when the transfer is registered with ADREC through DARI. Who pays it is a matter of agreement. The fee is commonly split between buyer and seller or paid by the buyer, by agreement, and the split should be written into the sale and purchase agreement. For musataha or usufruct rights, registration is calculated differently: 4% of the annual consideration multiplied by the term.
What extra fees do you pay with a mortgage?
A mortgage adds three main costs. Mortgage registration is 0.1% of the loan amount and is paid by the buyer; we have not found any cap in published sources. The bank will also commission a valuation, typically AED 2,500 to 3,000 plus VAT, and charge an arrangement fee of up to 1% of the loan plus VAT. Because the arrangement fee is quoted as “up to” 1% and valuation fees sit within a range, compare the full cost of each bank’s offer rather than the interest rate alone.
How much is agent commission in Abu Dhabi?
The market norm for a sale is 2% of the price plus 5% VAT. This is a convention, not a legally fixed rate, and it can be negotiated. Who pays it depends on the agreement with the agency, so confirm it in writing before viewings begin. Whatever the fee, make sure the agent is licensed. Since 19 September 2024, every real estate agent in Abu Dhabi must hold a Broker Licence Number issued through ADREC on DARI, and since 7 July 2025 every property advert must carry a Madhmoun permit. An unlicensed intermediary is a risk you do not need to take.
Worked example: what does an AED 2,000,000 apartment cost to buy?
Assumptions: a ready apartment at AED 2,000,000; the buyer pays the full 2% registration fee; a mortgage of AED 1,500,000 (an illustrative figure, not a lending rule); valuation at the top of the range (AED 3,000); arrangement fee at the 1% maximum; buyer pays a 2% agent commission. VAT is 5% where it applies. Registration fee (2% of AED 2,000,000): AED 40,000. Title deed: about AED 1,000. Agent commission (2%): AED 40,000, plus VAT of AED 2,000, so AED 42,000. Cash buyer total: AED 83,000, or 4.15% of the price.
Add for the mortgage: registration (0.1% of AED 1,500,000) AED 1,500; valuation AED 3,000 plus VAT of AED 150, so AED 3,150; arrangement fee (1% of AED 1,500,000) AED 15,000 plus VAT of AED 750, so AED 15,750. Mortgage costs: AED 20,400. Mortgage buyer total: AED 103,400, or 5.17% of the price. If the registration fee is split equally with the seller, the buyer saves AED 20,000, bringing the totals to AED 63,000 (cash) and AED 83,400 (mortgage).
| Cost | Rate | Usually paid by | Cash buyer (AED) | Mortgage buyer (AED) |
|---|---|---|---|---|
| Sale registration fee | 2% of the price | Buyer, or split by agreement | 40,000 | 40,000 |
| Title deed | About AED 1,000 | Buyer | 1,000 | 1,000 |
| Agent commission | Market norm 2% + VAT (negotiable) | By agreement | 42,000 | 42,000 |
| Mortgage registration | 0.1% of the loan | Buyer | – | 1,500 |
| Bank valuation | AED 2,500–3,000 + VAT | Buyer | – | 3,150 |
| Bank arrangement fee | Up to 1% of the loan + VAT | Buyer | – | 15,750 |
| Total | 83,000 (4.15%) | 103,400 (5.17%) |
Are there other costs after you buy?
Yes. Owners in jointly owned buildings and communities pay service charges, which need ADREC approval and are governed by the 2025 decisions on jointly owned property and owners’ committees. ADREC reported a 6% fall in service and community charges across the emirate in 2023, a reduction of AED 39.7m on 2022. Charges vary widely by building, and no emirate-wide per-square-foot index is published, so ask for the current approved budget for the specific unit. Budget too for utility connections, insurance and furnishing. Off-plan buyers should also check the payment plan and any fees the developer charges at handover. See how these costs affect your return in our property ROI guide.
How ODZ helps you control the cost of buying
The fees themselves are largely fixed. The bigger saving usually lies in the price paid and the terms negotiated around it. ODZ assesses each asset against comparable stock, sets out the full acquisition budget before you commit, and negotiates both the price and the allocation of costs such as the registration fee. We also coordinate with banks, developers and registration platforms so that nothing is missed between offer and title deed.
Frequently asked questions
What are the total costs of buying property in Abu Dhabi?
Expect roughly 4% to 5% on top of the price. The main items are the 2% registration fee, about AED 1,000 for the title deed and an agent commission (market norm 2% plus VAT). A mortgage adds 0.1% registration, a valuation of AED 2,500–3,000 plus VAT and an arrangement fee of up to 1% plus VAT.
Who pays the 2% transfer fee in Abu Dhabi, the buyer or the seller?
It depends on the agreement. The 2% registration fee is commonly split between buyer and seller or paid by the buyer, by agreement, and the arrangement should be stated in the sale and purchase agreement. We have not found an official ADREC rule setting a default split, so negotiate it as part of the deal.
Is agent commission fixed by law in Abu Dhabi?
We have not found an official text that fixes it. The market norm on sales is 2% of the price plus 5% VAT, and it can be negotiated. What is regulated is the agent: since 19 September 2024, every agent in Abu Dhabi must hold a Broker Licence Number issued through ADREC on DARI.
How much is mortgage registration in Abu Dhabi?
Mortgage registration is 0.1% of the loan amount, paid by the buyer. On a loan of AED 1,500,000, that is AED 1,500. Banks also charge for a valuation, typically AED 2,500–3,000 plus VAT, and an arrangement fee of up to 1% of the loan plus VAT.
Is there property tax in Abu Dhabi?
The UAE has no personal income tax, and an individual’s gain from selling property held personally is not subject to UAE tax under Cabinet Decision No. 49 of 2023. Owners do pay transaction fees, such as the 2% registration fee, and service charges on jointly owned property. Property held through a company can fall under the 9% corporate tax.
Sources
- Bayut — Fees for buying property in Abu Dhabi
- DMT — Regulatory decisions for the real estate sector
- Abu Dhabi Media Office — 6% reduction in service charges in 2023
- Property Finder — Abu Dhabi broker licensing
- Bayut — ADREC Madhmoun permits
- UAE Ministry of Finance — Cabinet Decision No. 49 of 2023
General information, not legal or financial advice. Fees and rules change — confirm current requirements with ADREC or speak with an advisor before you commit.