The Hidden Costs of Buying Property in Abu Dhabi

Buying a home or investment property in Abu Dhabi is certainly a major milestone. Whether you are a seasoned investor or a first-time buyer, the property market here has lots to offer, starting from luxurious waterfront villas to sleek city apartments.

The listing price for apartments under the affordable sector in Abu Dhabi have risen up to 7 per cent, while the budget-friendly villa price has increased by 5 percent, as of mid 2025, further concluding the potential investment and returning yield demand properties have in this region.

But while the listed price might seem straightforward, the hidden costs of buying a property in Abu Dhabi can come as a surprise, unless you know the charges that go behind them.

With many hidden costs, the property purchase fees can add up to 6 to 10% of the total property value.

In this guide, we are about to break down every cost you must know about, from registration fees to annual maintenance, to let you plan your purchase with confidence.

Main Property Fees in Abu Dhabi

Buying a property in Abu Dhabi involves more than just paying the listed price. Many buyers, especially first-timers, might be surprised to see the additional charges that show up during the transaction process.

To help you buy properties in Abu Dhabi, here’s a breakdown of the major purchase fees that you need to know, starting from registration, mortgage fees, to maintenance and service charges.

Property Registration Fee

The property registration fee is one of the most significant upfront costs. It is typically charged by the Abu Dhabi Municipality and amounts to 2% of the property’s purchase price.

• This is a mandatory fee and remains applicable for all real estate purchases.
• In some transactions, the costs might be split between the seller and the buyer. Most often, the buyer must be ready to clear the full amount.

If you are buying off-plan, then developers might offer to cover this particular fee as an incentive.

ADGM Fees

If your property purchase comes under the ADGM (Abu Dhabi Global Market) jurisdiction, the registration fee is 2% of the property evaluation or property value, whichever is higher.

This is a mandatory fee for all ADGM property transactions.

• Mortgage registration fee: 0.1% of the estimated mortgage amount with no maximum cap applied to it.
• Mortgage Discharge fee: AED 1,000 per property (only if applicable)

Mortgage Registration Fee

If you have plans to finance your property purchase through a bank loan, then you need to pay a mortgage setup fee to the government.

• This particular fee is 0.1% of your total loan amount.
• The minimum fee typically lies around AED 500, and the maximum is capped at AED 1,000.
• It must be paid directly to the DMT (Department of Municipalities and Transport) at the time of your property registration.

Our expert real estate agents are here to clear up your queries related to real estate brokerage or agency fees, making your property purchase in Abu Dhabi a transparent and stress-free process.

NOC (No Objection Certificate) Fee

If you are planning to buy a secondary or resale property, then you need to obtain a NOC (No Objection Certificate) from the developer to complete the ownership transfer process.

The NOC confirms that the seller has no kind of outstanding payments or dues to clear in the first place. It’s a mandatory process to legally process your transaction.

• AED 3,500 to AED 5,500, based on the developer and project location.
• Properties or luxury developments providing high service standards most often fall at the higher end of the range.

Property Valuation Fee

If you are applying for a mortgage, the banking institution takes the professional property valuation process to determine the exact market value before approving your loan.

• The valuation fee ranges from AED 2,500 to AED 3,500.
• This particular fee is non-refundable, even if your mortgage application gets rejected by the banking institution.

Bank Processing Fee

Once the mortgage has been approved, the banking institution will charge a processing fee. This particular fee usually ranges between 0.5% to 1% of your total loan amount.

• Some of the banking institutions might include arrangement or administrative fees in this amount.
• The fee must be cleared up front before loan disbursement.

Annual Service Charges and Maintenance Fees

After you buy properties in Abu Dhabi, you are responsible for clearing annual service charges. This particular fee covers the maintenance of communal facilities like gyms, pools, elevators, security, and landscaping.

• These charges range between AED 10 and AED 25 per square foot and may be charged once a year.
• Fees can significantly vary based on the building’s quality, location, and amenities attached to it.

Our team of in-house real estate agents will provide details related to annual service charges and maintenance fees of Abu Dhabi-based properties, so that you can never end up paying more out of your wallet.

Musataha & Usufruct Fees

Some properties in Abu Dhabi are sold under Usufruct or Musataha agreements, especially the ones that are built on government land.

• Mustaha gives you the right to develop and utilize the land for a fixed period, which typically ranges between 10 and 50 years.
• Usufruct grants you the right to utilize the property and gain potential benefit from it, even without owning the land.

Both these agreements might involve a one-time fee up to 4% of the property’s overall value.

Utility & Connection Deposits

Before moving in, you will need to pay deposits and connection fees to utility providers like ADDC (Abu Dhabi Distribution Company) and Etisalat.

• The typical deposit for water and electricity is AED 1,000.
• Internet and TV connections might require clearing additional setup fees.

Our renowned agents will walk you through the utility and connection deposit clearing process and the kind of benefits you can yield from it as well.

VAT on Off-Plan Properties

If you are planning to invest in a new off-plan property in Abu Dhabi, note that VAT is charged at 5% on commercial properties.
For mixed-use properties that have both residential and commercial spaces, VAT will be applied only to the commercial portion, while the residential portion is exempt or zero-rated if it is the first supply within three years of completion.

• The developer will collect this particular tax and further pass it on to the FTA (Federal Tax Authority).
• In the secondary market, only residential properties are exempt. Commercial properties are taxed at 5% even when resold.

Title Deed Issuance Fee

The title deed officially registers the property purchase in Abu Dhabi in your name. This document is issued by the Department of Municipalities and Transport.

• The fee is AED 1,000, and it must be paid during the final stage of the ownership transfer.

Moving & Furnishing Costs

Moving and furnishing costs do come under the hidden costs of buying a property. Hiring movers and purchasing furniture can add up to your overall property investment as well.

• Moving costs range from AED 2,500 to AED 8,000, based on the size of the property and your belongings.
• Furnishing costs anywhere between 5% to 10% of the property’s value, especially if you are investing in them from scratch.

Home Insurance

Although not mandatory for cash buyers, home insurance is required and strongly recommended while dealing with mortgage lenders.

• You may have to pay between AED 1,000 and AED 5,000 per year, based on the overall value and size of the property.
• Insurance typically covers flooding, fire, theft, and structural damage.

Electronic Service Fees

Transactions that are processed electronically have additional service fees to clear from the buyer’s end.

• AED 1,000 + 5% VAT for standard services
• Mortgage Registration: AED 470 + 5% VAT
• Mortgage Discharge: AED 65 + VAT (if applicable)

Our real estate agents are committed to providing the factors that have direct and indirect influence when it comes to dealing with property purchase fees in Abu Dhabi.

We help clear up the trust cost of buying a property, further ensuring a smoother transaction and long-term affordability.

Tips for Managing Property Costs in Abu Dhabi

Once you have understood the hidden costs of buying a property in Abu Dhabi, the next step that you must learn is how to effectively manage them. All these hidden costs that range from service charges, mortgage fees, to utility deposits can significantly impact your financial planning if not accounted for properly.

Here are some top tips that will help you wisely plan and manage your property purchase fees in Abu Dhabi.

Budget for 6 to 10% in Extra Costs

The first and foremost crucial step you must take is to budget beyond the quoted property price. It is recommended to set aside at least 6 to 10% of the total property value to cover additional fees like mortgage setup, registration, valuation, and legal costs.

Off-plan property might involve higher upfront costs due to VAT and other developer fees. Being aware of it and budgeting accordingly will help you avoid facing last-minute financial shocks.

Ask About Developer Incentives

Many property developers in Abu Dhabi provide special deals or buyer incentives that can offset some of your investment costs. These include:

• Covered title deed charges
• Waived registration fees
• Free-DLD fee (if applicable)

Some developers might include 5% VAT on off-plan properties to boost their sales values. Our real estate agents will negotiate and inquire about available incentives to make your property investment process a hassle-free one.

Compare Communities for Ongoing Costs

Different neighborhoods in Abu Dhabi come with different service charge rates. Before buying, assess:

• Upcoming infrastructure projects
• Community maintenance history
• Access to hospitals, schools, and retail outlets.

Plan for Long-Term Affordability

You must think beyond the purchase price. Ownership comes with recurring costs that many buyers neglect or forget to calculate, such as:

• Maintenance and repairs
• Annual service charges
• Home insurance premiums
• Future renovations

To avoid last-minute surprises, we recommend creating a 5-year cost forecast for your financial plan. This way, you can confidently handle ownership costs regardless of how they arise.

Work with a Local Real Estate Expert

By partnering with our local and experienced real estate agents, you can save on your time and money. Our knowledgeable agent will:

• Recommend properties with lower fees
• Clarify all financial and legal obligations on your behalf
• Negotiate better terms
• Provide access to exclusive incentives

Our expert real estate agent team will help you compare the hidden costs across communities, ensuring that you are never caught off guard later.

Conclusion

Abu Dhabi is one of the most rewarding and safest real estate markets in the region. But to make a smart purchase, you must understand the hidden costs of buying a property, from mortgage and registration fees to utilities, annual service and insurance charges.

At SixS Real Estate, our agents have a deep understanding of the market to let you buy properties in Abu Dhabi with complete confidence, knowing what you can expect, both upfront and down the road.

We are one phone call away from stepping up your property purchase journey and ensuring it remains smooth, transparent, and rewarding, all in one place.