The hidden costs of owning property in Abu Dhabi
One of the biggest obstacles to buying a home is fear of the unknown. In the UAE, reliable information can be hard to find, and not knowing the process, who to trust, or how much it will really cost, can hold buyers back.
There’s nothing worse than thinking you can afford a property and then being hit with hidden costs. The good news is that in Abu Dhabi, these extra charges aren’t extensive but it’s important to know them upfront. The Memorandum of Understanding (MOU) you sign with the seller should outline the fees (except those linked to your mortgage or bank), so always read it carefully.
Registration and transfer fees
This is one of the “big two.” In Abu Dhabi, transfer fees are two percent of the purchase price (compared to four percent in Dubai), or one percent if it’s leasehold, such as Al Reef 1. Rarely, if the ADREC/ADGM valuation comes in higher than your purchase price, the two percent fee is calculated on the higher number. Sellers can check this before the MOU is signed, though there is a cost.
Broker fees
The second “big two.” Brokers usually charge two percent of the purchase price, split if there are two brokers involved. Buying directly from a developer may mean no broker fees, as developers often pay brokers themselves for off-plan sales.
Mortgage expenses
If you’re using a mortgage, expect a bank valuation fee and possibly a mortgage arrangement fee. This valuation is separate from the ADREC/ADGM valuation and is mandatory for the bank’s security.
NOCs and developer fees
Before a sale, the developer must issue a No Objection Certificate (NOC), confirming there are no pending service charges or disputes. The cost is capped at AED 5,000. Whether the buyer or seller pays depends on the developer — check the MOU.
Administrative fees
Property transfers at ADREC or ADGM involve admin fees, which vary by office and property type. If you have a mortgage, registering it costs 0.9 percent of the mortgage value.
Ongoing costs of ownership
Owning property comes with running costs. The biggest is service charges, ranging between AED two and AED 35 per sq ft. If you have a mortgage, you’ll need building insurance, and of course, maintenance is on you. One saving: you won’t pay the municipality fee renters pay (five percent of annual rent). If your building uses chilled water for AC, you’ll also pay a capacity charge alongside consumption.
Resale and exit costs
On resale, you don’t pay transfer fees, and sellers usually avoid broker fees. But if you didn’t pay the NOC when buying, you’ll likely pay it when selling. Watch out for early redemption fees on mortgages too — capped at AED 10,000 and often waived if the property is sold.
A safe rule of thumb: budget an additional five percent of the purchase price for fees. That way, you won’t get caught out when buying property in Abu Dhabi.
Also read Ben Crompton’s previous column on Mistakes buyers still make in Abu Dhabi’s property market in 2025.