Range

Many people move to Dubai planning to rent for a short term. Over time, rent increases start to feel heavy. Payments go out every month, yet nothing belongs to you. That moment often triggers a serious look at buying an apartment in Dubai.

The buying process itself is straightforward. The real challenge is understanding the true cost.

The listed price is only one part of the picture. Buyers must plan for down payments, Dubai Land Department fees, mortgage costs, and ongoing yearly expenses. When all numbers are clear, buying either feels realistic or it does not.

This guide explains the real costs you need to know before buying an apartment in Dubai.

Key Cost Facts Buyers Should Know

Apartments in Dubai typically sell between AED 500,000 and AED 3 million.
Buyers should budget an additional 7% to 8% on top of the purchase price for fees.
Expats usually need a 20% down payment for apartments under AED 5 million.
Service charges significantly impact long-term ownership costs.
Off-plan apartments attract buyers due to lower entry prices and structured payment plans.

Current Apartment Prices in Dubai

Apartments account for the majority of property sales in Dubai. Buyers choose them for affordability, rental demand, and strong location options.

The average apartment price in Dubai is approximately AED 1,670 per square foot. This includes studios, one-bedroom, and two-bedroom apartments across various communities. Prices have increased over the past year due to strong market demand.

Studio Apartment Prices in Dubai

Studio apartments are popular with first time buyers and investors.

A 600 sq ft studio often costs close to AED 1 million in prime areas. More affordable options are available in:

Studios are typically easy to rent and simple to manage, making them attractive investment units.

One-Bedroom Apartment Prices in Dubai

One-bedroom apartments offer more space without a sharp price jump increase.

An 800 sq ft unit usually ranges between AED 750,000 and AED 1.4 million depending on location and building quality. Popular areas include:

Two Bedroom Apartment Prices in Dubai

Two bedroom apartments suit couples and small families.

A 1,200 sq ft unit often costs around AED 2 million depending on the community. Buyers typically prioritise areas with schools, transport links, and retail access. Strong communities tend to support long-term value growth.

Price Ranges With the Highest Demand

Most apartment demand sits between AED 500,000 and AED 3 million. This range attracts both investors and end users.

Apartments in this price band typically:

Sell faster
Carry lower resale risk
Maintain steady rental demand

This segment forms the backbone of Dubai’s apartment market.

Areas With Lower-Priced Apartments in Dubai

Affordable apartments can be found in

Jumeirah Village Circle
Dubai South
Dubai Production City
Arjan

Studio prices in these areas often start near AED 450,000. Strong rental demand supports stable occupancy rates. This supports prices even at the lower end of the market.

Extra Costs When Buying an Apartment in Dubai

Many buyers often underestimate transaction costs. These charges are mandatory and apply to all purchases.

Dubai Land Department charges:

The Dubai Land Department charges

4% of the purchase price (transfer fee)
AED 4,200 trustee fee (for properties above AED 500,000)
AED 2,100 trustee fee (for properties below AED 500,000)
AED 580 administrative fee

Real estate agency commission is typically 2% of the purchase price plus VAT.

EXAMPLE
A buyer purchasing an AED 1 million apartment should budget around AED 70,000 to AED 80,000 in additional transaction costs.

Mortgage Related Costs

Mortgage buyers face additional bank charges. These depend on the lender and loan amount.

Mortgage registration fee (Dubai Land Department)
Banks charge a processing fee (approximately 1% plus VAT)
Property valuation fee (AED 2,500 - AED 3,500 plus VAT)

These costs are payable before final loan approval.

Ongoing Costs After Buying an Apartment

Ownership includes yearly expenses.

Service charges

Service charges cover maintenance of lifts, security, pools, parking, and shared facilities. Most buildings charge between AED 12 and AED 25 per square foot annually. An 800 sq ft apartment may cost between AED 10,000 to AED 16,000 per year in service charges.

DEWA charges
The Dubai Electricity and Water Authority (DEWA) handles electricity and water. Initial connection fees typically range between AED 2,130 and AED 2,155. Monthly usage depends on consumption and cooling requirements.

Property Management Fees
Some owners hire property management companies to handle tenants, maintenance, and rent collection. Fees usually range from five to ten percent of yearly rent. Many owners find this cost worthwhile.

Mortgage Versus Cash Buyers in Dubai

Mortgage use continues to rise in Dubai.

Banks typically finance up to 80% of the purchase price for properties under AED 5 million. Buyers must provide the remaining 20% as a down payment.

For an AED 1 million apartment:

Down payment - AED 200,000
Plus transaction costs

Mortgage rates in Dubai often range between 4% and 6%. Monthly payments often match rental costs. This comparison pushes long term renters toward ownership.

Off-Plan Versus Ready Apartments

Off-plan apartments attract buyers due to flexible payment plans. Developers often request 10% to 20% upfront, with the balance paid in construction milestones.

Ready apartments appeal to buyers who want immediate use or rental income. Both markets remain active due to strong tenant demand. Each option suits different buyer goals and timelines.

Final Thoughts on Apartment Buying Costs in Dubai

Buying an apartment in Dubai involves more than the listed price. Buyers must plan for fees, financing, and ongoing expenses. Clear budgeting avoids stress and delays. Understanding the full cost helps you decide with confidence.

Working with experienced professionals simplifies the process. Range International Property Investment helps buyers understand real costs and make informed decisions. With the right planning, apartment ownership in Dubai becomes a practical long term choice.