Purchasing off-plan property in Dubai can appear to be an best investment opportunity
Lower purchase prices, payment plans, and potential capital appreciation.
But before you put pen to paper, it is critical to look beyond fancy brochures and salesmen’s talks.
The truth is, there are a number of undisclosed expenses that investors are not informed about initially.
Expenses like these add up and could affect your return on investment if you are not entirely prepared.
Let us take a look at what you need to include in your budget.
1. Dubai
Land Department (DLD) Charges
When you purchase any property within Dubai, whether off-plan or ready, you are required to pay 4% of the property value
towards a DLD registration fee.
Generally, these are not covered by the marketed property price.
There are limited-period DLD waivers from some builders, but if not, be prepared to pay this in full when signing the SPA.
2. Oqood
Registration Fees
This applies to off-plan.
The registration fee for Oqood is 1,050 AED and is required to legally register your off-plan property with the DLD.
It is a minimal fee relative to others, but it tends to be ignored when budgeting.
3. Service
Charges After Handover
Annual fees for maintaining common property are referred to as service charges. These include basics as landscaping, security services, pools, and fitness centers.
While developers are apt to provide estimates, these fees are likely to differ when the building is finished.
Luxury developments with premium amenities would be costlier, perhaps AED 20–30 per sq. ft. or even above.
4. VAT on
Commission and Services
A Value Added Tax (VAT) rate of 5% is imposed upon brokerage commissions, DLD administration fees, and any other service fees.
The property itself may be exempt or zero-rated, but these incidental VAT expenses are not typically discussed as
part of the initial budget.
5. Delayed
Handover & Cost of Waiting
One of the largest unseen “costs” is time. You can earn beach the money, but once the time is gone, you can’t bring it back.
Delayed handover can result in lost rental returns, opportunity cost, and emotional stress, in extreme cases.
Conclusion
Make purchases from developers who have a history of delivering projects on time.
Off-plan property investment in Dubai can be very profitable if you approach it with eyes wide open.
The above-mentioned secret expenses are not make-or-break factors, but it is important to be aware of them if you don’t want to face budget surprises and make accurate calculations for ROI.
Considering making an off-plan investment in 2025?
Get in contact with our professional advisors who can guide you through the overall cost of ownership—completely and transparently.
Remain intelligent. Remain updated. Happy real estate investment in Dubai.
