Having a clear understanding of the cost of an apartment in Dubai that you are interested in is essential if you plan to establish a business or seek better job opportunities in the city.

Over the past decade, living expenses in Dubai have seen a significant increase. However, the UAE has implemented regulations to counteract the effects of the COVID-19 pandemic, leading to a decrease in the cost of a flat in Dubai or any other property in 2021. 

Additionally, the UAE’s efforts to attract skilled professionals from around the world have contributed to a decline in living costs. In Mercer’s 2021 Cost of Living Survey, Dubai ranked 42nd, indicating a relatively moderate cost of a flat in Dubai compared to other cities.

What is the cost of a flat in Dubai? 

One of the key factors that determine the cost of an apartment in Dubai is the choice of accommodation. Buying an apartment in downtown Dubai can be quite expensive, but you can save significantly by opting for apartments in the Old City or the outskirts of the city. 

Here is a guide to give you an idea of the average costs of a flat in Dubai (Based on type):

Apartment Type Size Cost (AED)
Studio 395-600 Sqft 400K AED – 650K
1 Bedroom Apartment  4950- 1000 sqft 600K AED – 1.2 MILLION
2 Bedroom Apartment 700-1800 sqft 800K AED- 2.5 MILLION
3 Bedroom Apartment 1000-3000 sqft 1.5 MILLION – 4.5 MILLION

Ready to move property 

Upfront charges – In order to acquire a ready-to-move project in Dubai, you are required to make the following payments to the Dubai Land Department (DLD):

  • DLD Fees: This amounts to 4% of the property’s value.
  • Title Deed Issuance Fees: AED 520
  • DLD Administration Fees: AED 4,200

Off-plan property 

You have the option to directly contact the seller or the property developer. 

Regardless of whom you buy the property from, the cost of buying a property in Dubai, which is 4% of its value, will apply in both cases. 

The buyer is required to pay AED 5,250 along with the 4% value for the issuance of an Oqood Certificate. This certificate is essential as it confirms that the property is registered under the buyer’s name in RERA (Real Estate Regulatory Agency). 

To obtain the certificate, the buyer must make an upfront payment of 25% of the property’s value.

Mortgage & Insurance Fees 

Fee For Bank Mortgage Arrangement 1% of the property’s loan amount + 5% VAT
Fee For Property Valuation  Between AED 2,500 to AED 3,500 + 5% VAT
Home and Contents Insurance AED 1,000 (Approx.)
Life Insurance 0.4-0.8% (approx.) on the decreasing loan balance

3 Main factors that can influence Dubai property prices

Property Location 

The price of a property in Dubai is significantly influenced by its location. Specific areas have higher property prices, primarily due to their proximity to amenities, transportation options, and utility infrastructure.

Age and Physical Condition of the Property 

Newly constructed homes in Dubai generally come with higher price tags, whereas older properties often require additional maintenance and repairs, leading to increased overall costs.


Renovations, upgrades, and updates contribute to the overall value of a property. Improvements in the kitchen, bathroom, and other areas can increase the property’s price. Similarly, enhancements such as wall paint, furniture, and ceiling designs may also influence the property’s value in Dubai.


Before relocating to any residential fic area in Dubai, it is important to investigate and determine the distinctive attributes and facilities offered in that location.

 If you desire a luxurious living environment, consider exploring communities such as Aj Furjan, The Greens, or The Lakes. On the other hand, if you are searching for apartments, you can find more of the best homes in  Zazen One and Zazen Gardens.