Investing in an off-plan property in Dubai has become one of the most attractive ways to enter the real estate market. The idea of owning a brand new home, choosing from flexible off plan payment plans Dubai, and benefiting from early-buyer prices is exciting. Many local and international investors are attracted to these opportunities because they offer strong potential returns and lower upfront commitments than those for ready properties.
But as off-plan projects bring along different high points, many buyers don’t realize there are extra hidden costs in off plan property that often aren’t written in glossy brochures or sales presentations. These hidden expenses can influence your budget, your investment returns, and even your overall buying experience. Getting them straight into your mind before it’s too late can help you plan better and avoid surprises later.
Below is a complete breakdown of the hidden off plan property fees you should know before buying an off-plan property in Dubai.
1. Dubai Land Department (DLD) Fees You’ll Pay Early in the Process
One of the biggest misconceptions buyers have is that DLD fees only apply to ready properties. However, even off-plan units have a 4% DLD registration fee, and they must be paid early in the purchasing process, mostly within 60 days after signing the Sales Agreement.
The 4% is inclusive of the administration fees, which normally cost between AED 580 and AED 5,800 depending on the project.
Why this matters:
Suppose that you are purchasing an off-plan apartment with AED 1 million. That will take AED 40,000 immediately, not in the future. Buyers who don’t plan for this often face last-minute financial stress.
2. Oqood Registration Fee for Off-Plan Projects
Oqood is the DLD system used to register all off-plan sales. Many buyers overlook this additional cost because it’s not always mentioned in marketing brochures.
The cost is usually AED 1,050, and developers often pass this fee on to the buyer.
A smart tip:
Ask if your developer is running a promotion—some absorb the Oqood fee as part of their marketing offer.
3. Service Charges After Handover
Once you receive the keys, the financial responsibilities don’t stop. You’ll start paying annual service charges for the building or community. These fees cover cleaning, maintenance, landscaping, security, pool upkeep, gym facilities, and other shared amenities.
Different buildings have different rates. Luxury communities might have higher service charges due to their premium facilities. In addition, some buildings also charge separately for air conditioning (chiller fees), which can add more to your annual off plan costs.
There are developers who make extremely positive estimates, but when it comes to real situations, the buyer will find themselves paying more upon delivery of the building than what was estimated by the developer. The best control mechanism to guarantee realistic rates is to look at projects that have been done by the same developer.
4. The Cost of Vacancy After Handover
Even after you receive your keys, your unit might stay empty for weeks—or sometimes months—before you secure a tenant. This vacancy period creates a financial gap that many investors don’t anticipate.
During the vacancy, you may need to pay:
- Full service charges
- DEWA connection fees (AED 1,100–2,000)
- Internet/TV connection fees (AED 500–1,000)
- Post-handover installments (if your payment plan includes them)
- Advertising or agent fees if you’re leasing
Why this matters:
Every month without a tenant means lost rental income and extra expenses. It’s wise to keep a buffer of 1–3 months’ costs.
Vacancy periods often happen because multiple units in a new project hit the market at the same time, creating competition among landlords.
5. Project Delays and Their Impact on Returns
One of the highest hidden costs is time. Off-plan properties can be delayed by months or even a year.
While Dubai has strong regulations to prevent excessive delays, minor delays are still common.
The consequences of delays include:
- Your rental income gets delayed
- Your expected ROI shifts
- Your capital stays locked without returns
- You may have to adjust your financial plans
Even if developers offer compensation clauses, they are often limited and not enough to cover actual lost income.
6. Furnishing and Fit-Out Costs That Come After Handover
When your off-plan property is handed over, it doesn’t always come fully ready. Even fully finished units often need additional items to make them livable or attractive for tenants. Depending on the level of finishing, you may need to spend on:
• Furniture
• Kitchen appliances
• Window blinds and curtains
• Extra lighting
• Decor
• Any extra work to improve the look and feel
Furnishing a one-bedroom apartment can easily cost between AED 30,000 and 50,000, and more if you have a premium taste. These expenses come right after you’ve already made your final payments, so they can put pressure on your budget if you’re not prepared.
Even “fully finished” units often need extra touches to make them rental-ready or personally comfortable.
This cost comes at the worst time:
Right after you’ve completed your final payments to the developer.
7. Mortgage-Related Fees Many Buyers Don’t See Coming
If you’re planning to finance your off-plan purchase through a mortgage service, get ready for additional off plan costs that many first-time buyers never hear about.
These include:
- Valuation fees: AED 2,500–3,500
- Bank processing fees: Up to 1% of the loan amount
- Mortgage registration: 0.25% of the loan amount
- Life insurance tied to the loan: 0.3–0.5% annually
A big surprise for many buyers:
Banks often value off-plan properties lower than expected at handover, meaning you may need to put in more cash upfront.
8. Developer Penalties and Contract Variations
Your Sales and Purchase Agreement (SPA) will include clauses that give the developer flexibility to make certain changes. Some of these may include:
• Slight adjustments in layout
• Small reductions or variations in unit size
• Revised completion timelines
• Design changes within the community
Developers can also charge penalties if buyers delay their installment of off plan property payment structure. Many buyers don’t pay attention to these clauses, but they become important if anything unexpected happens. It’s a good idea to have your real estate investment consultant or a lawyer review the contract to guarantee clarity.
Always have a trusted agent or lawyer review the contract.
This small step can save you from costly surprises.
9. Currency Exchange Costs for International Buyers
For overseas investors, currency exchange rates play a huge role. Since the UAE dirham is tied to the US dollar, any change in your home currency can increase or decrease the effective cost of your property.
International transfers also come with bank charges, especially when payments are made multiple times across different installments. Over months or years, these fees can add up significantly.
Experienced investors often time their payments when currency rates are favourable or use financial tools to reduce exchange risk.
Common hidden expenses include:
- Exchange rate fluctuations
- Transfer fees (1–3%)
- International wire charges for each installment
Smart tip:
Use reliable exchange services or lock in rates when favorable to reduce unexpected charges when buying off plan in Dubai.
10. Exit Costs If You Decide to Sell Before Completion
Sometimes, buyers choose to sell off-plan property before it’s completed. While this can be profitable, it comes with several costs:
• Transfer fees
• Developer NOC charges
• Agent commissions
• Any penalties mentioned in the SPA
These expenses can impact your profit or even put you at a loss if the market conditions aren’t favourable. It’s important to understand these hidden costs in off plan property before deciding on an early exit.
Final Thoughts: Be Informed Before You Invest
Off-plan properties in Dubai can be a great choice and offer exciting opportunities, but buying wisely requires full awareness of all the hidden costs. When you account for everything—hidden off plan property fees, delays, charges, furnishing, vacancy periods, and more—you get a much clearer picture of your total investment.
Smart investors always plan with transparency and long-term thinking. The more you know what fees to expect before booking an off plan unit, the more confident and profitable your investment journey becomes.