You Can’t Mortgage the 4% DLD Fee — Here’s Why That Matters

Effective February 1, 2025, a significant policy change from the Central Bank will impact real estate transactions in Dubai. The 6% combined fees, which include the 4% Dubai Land Department (DLD) fee and 2% agency fees, can no longer be included in mortgage lending. This means that buyers must now pay these fees upfront, separate from their mortgage loan.

Why This Matters

This policy change makes it more crucial than ever for investors to have liquidity on hand when purchasing property. No matter which bank you work with, the DLD fee and agency fees must be paid in cash, upfront. These are mandatory government and agency charges required to finalize the registration and sale of your property, and they cannot be financed.

So, what does this mean for investors?

It means you’ll need liquidity on hand, even if you’re financing your purchase. In addition to the 4% DLD fee, buyers should prepare for:

• Valuation fees
  
• Bank processing fees
  
• Broker commissions
  
• Potential down payment shortfalls
  

Together, these add up to 7–8% of the property value in upfront costs.

At Baraca, we don’t just guide you toward high-yield investments—we make sure you’re entering deals with the full financial picture. That includes smart planning for costs that can’t be financed.

Because successful real estate investing isn’t just about ROI. It’s about strategy, clarity, and being fully prepared—before you sign anything.