How Much It Really Costs to Buy a Rental in Dubai
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1/30/2025
October 8, 2025
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How Much It Really Costs to Buy a Rental in Dubai

To understand how much money you need to buy a rental in Dubai, let's speak about its real estate prices at first. Of course, prices vary from community to community and depend on area, property type, and its size. For example, apartment studios have the lowest price.

Here we listed where ready apartment studio prices start form in different affordable areas in Dubai in 2019:

  • Jumeirah Village Circle – AED 250,000
  • Dubai Sports City – AED 265,000
  • Dubai Silicon Oasis – AED 280,000
  • Discovery Gardens – AED 310,000
  • Jumeirah Village Triangle–AED 370,000.

With each unit, no matter its price and location, you have two options – buying with your own money or financing. Therefore, let's do detailed research for each case separately to get the complete picture.

Buying with your own money

If you decide to purchase a rental using only your savings and without any liabilities, you need to have all the amount of money needed for the deal.

Though the lowest price is AED 250,000, it doesn't mean 250,000 dirham will cover all your expenses. So, do not forget about closing costs. They include at least:

  • Transfer fee – 4% of property price
  • Admin fee – AED 580
  • Registration fee – AED 2,100
  • Agency fee – usually 2% of property price.

Hence, to buy an apartment studio of AED 250,000, prepare to spend least AED 267,680. To clarify, in addition to studio price, you need to pay AED 17,680 for closing costs:

  • AED 10,000 for Transfer fee
  • AED 580 for DLD Admin fee
  • AED 2,100 for Registration fee
  • AED 5,000 for Agency fee.

Note, Registration fee of AED 2,100 is charged only for properties that cost less than AED 500,000. However, if the property cost more than AED 500,000, you need to pay AED 4,200 for its registration.

To make your calculation easier, we provide you with a general formula of your total costs for property below AED 500,000:

Your total costs = property price + 6% of property price + AED 2,680 (AED 4,780 for property above AED 500,000).

Using a financing scheme

If you decide to purchase a rental with financing, you need to cover your down payment as well as closing costs.

Typically, banks require no less than 25% of property value for down payment. For example, for an apartment studio of AED 250,000 your deposit must be at least AED 62,500.

With mortgage deals at place, your closing costs are higher than when you buy a rental with your own money. Your expenses here include:

  • Transfer fee – 4% of property price
  • Admin fee – AED 580
  • Registration fee – AED 2,100
  • Mortgage registration – 0.25% of the loan
  • Another Mortgage registration fee – AED 290
  • Property valuation – at least AED 2,625
  • Agency fee – usually 2% of property price.

Hence, to buy an apartment studio of AED 250,000 with financing, you need at least AED 17,680 to cover your closing costs:

  • AED 10,000 for Transfer fee
  • AED 580 for DLD Admin fee
  • AED 2,100 for Registration fee
  • AED 758.75 for Mortgage registration
  • AED 2,625 for Property valuation
  • AED 5,000 for Agency fee.

The rule of charging AED 4,200 for registration the unit of AED 500,000 and more are also valid here.

So, to calculate the amount of money you need to buy a rental in Dubai with mortgage scheme, use the following formula:

The needed amount of money = 31% of property price + 0.25% of the loan + AED 5,595 (AED 7,695 for property above AED 500,000).

However, keep in mind in all mortgage transactions the question about money you posses now is not the only one. Here the question about how much you earn arises as well.

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