Discover the 2025 Abu Dhabi property transfer and mortgage registration fee percentages, what buyers pay, and how to budget for real estate costs.
For many people considering property in Abu Dhabi, the process can seem straightforward find the right home, arrange financing, and sign the contract. Yet, the real challenge often lies in understanding the additional costs that accompany the transaction. While Abu Dhabi’s real estate market is among the most transparent in the region, property buyers in 2025 still face questions about the Abu Dhabi mortgage registration fee percentage 2025 and the Abu Dhabi property transfer fee percentage buyer 2025.
These fees, although clearly defined by the Abu Dhabi Department of Municipalities and Transport (DMT) and the Abu Dhabi Real Estate Centre (ADREC), can vary slightly depending on the property type, location, and financing method. Understanding them early ensures buyers can plan their budgets and avoid last-minute surprises.
Among all additional costs, the property transfer and registration fees are often the most significant. These are the official government charges required to transfer property ownership from the seller to the buyer.
In Abu Dhabi, the standard property transfer fee remains two percent (2%) of the purchase price in 2025. This aligns with the rate in recent years, maintaining the emirate’s position as a more affordable alternative to Dubai, where the transfer fee is four percent.
However, buyers should note that this 2% Abu Dhabi property transfer fee percentage applies to freehold properties — typically available in designated investment zones such as Saadiyat Island, Yas Island, Al Raha Beach, and Al Reem Island.
For leasehold properties, such as those in Al Reef 1 or similar developments, the fee is reduced to 1% of the purchase price. This difference exists because leasehold ownership does not grant full title over the land, only the right to use it for a set term.
Occasionally, ADREC or ADGM may conduct a valuation assessment. If the official valuation is higher than the agreed purchase price, the transfer fee is calculated on the higher value. This rule ensures fairness in market reporting and prevents undervaluation of property transactions.
In most cases, the buyer pays this fee. However, it can be negotiated sometimes shared between the buyer and seller, depending on the terms set out in the Memorandum of Understanding (MOU).
To summarize:
Freehold property: 2% of the property value.
Leasehold property: 1% of the property value.
Based on higher of purchase price or valuation.
Usually paid by the buyer, unless otherwise agreed in writing.
These costs are paid at the time of title transfer and are a mandatory part of finalizing ownership.
For those financing their purchase with a mortgage, another important expense to consider is the mortgage registration fee. This fee covers the administrative process of registering the mortgage with the authorities, ensuring the bank’s interest is legally recorded.
As of 2025, the Abu Dhabi mortgage registration fee percentage 2025 remains 0.9% of the mortgage value. This figure is confirmed by several property consultants and continues to align with regulations in place under the Abu Dhabi Real Estate Centre.
This means that if a buyer takes out a mortgage of AED 1,000,000, they will pay AED 9,000 in mortgage registration fees. It’s important to understand that this amount is based on the loan value, not the purchase price of the property.
The fee is typically paid at the time of property registration and is separate from other bank charges, such as the mortgage arrangement fee (usually around 1% of the loan amount, charged by the bank) and the valuation fee (which generally ranges between AED 2,500 and AED 3,500).
Together, these mortgage-related expenses can add a noticeable amount to your upfront costs, especially for high-value properties.
In addition to the official transfer and mortgage registration charges, buyers may encounter several administrative and developer-related fees. These fees cover necessary paperwork and verifications before ownership can change hands.
One such fee is the No Objection Certificate (NOC), which the property’s developer must issue to confirm there are no outstanding service charges or disputes linked to the property. The NOC fee in Abu Dhabi is capped at AED 5,000, and depending on the developer’s policy, it may be paid by either the buyer or the seller. This should always be clarified in the MOU before signing.
Furthermore, administrative fees at ADREC or ADGM can vary depending on the type of property (residential, commercial, or off-plan). These fees are typically modest but necessary for document processing and final issuance of the title deed.
Another major cost category relates to real estate agents. The broker’s fee is generally 2% of the property purchase price, although this may vary if two agents are involved, in which case the fee is split equally. Buyers purchasing directly from a developer particularly off-plan properties may avoid paying a broker fee, as developers often cover this themselves as part of their marketing strategy.
Legal fees are not mandatory but highly recommended, especially for high-value or complex transactions. A property lawyer can help review the MOU and ensure the buyer’s interests are protected. Legal consultation fees usually range between AED 5,000 and AED 10,000, depending on the complexity of the deal.
The financial commitment doesn’t end at the point of purchase. Property ownership in Abu Dhabi comes with recurring costs that ensure the building’s maintenance and proper management.
Service charges are among the most significant ongoing expenses. They are billed annually by the developer or property management company and can range from AED 2 to AED 35 per square foot per year, depending on the location, amenities, and property type. Luxury towers with facilities like pools, gyms, and concierge services naturally fall at the higher end of this range.
Homeowners with a mortgage are also required to maintain building insurance, which covers potential structural damage. While Abu Dhabi does not impose an annual property tax, buyers can take comfort in knowing that they are exempt from the 5% municipality tax that tenants pay on rental properties.
If your building uses chilled water systems for air conditioning, you will also incur capacity and consumption charges from providers such as Tabreed or ADDC, depending on your community’s infrastructure.
Should you decide to sell your property later, it’s important to know which fees apply on resale. Sellers generally do not pay the property transfer fee — that obligation rests with the new buyer. However, sellers may have to pay the NOC fee if it wasn’t covered during their initial purchase.
If your property is mortgaged and you choose to repay the loan early (for example, when selling the property), banks may charge an early settlement or redemption fee. In Abu Dhabi, this fee is capped at AED 10,000 and is often waived entirely if the sale leads to full loan repayment.
A reliable guideline is to budget around 5% of the property’s purchase price to cover all associated costs and fees. This estimate includes the Abu Dhabi property transfer fee percentage, the mortgage registration fee, broker commission, legal charges, and other administrative expenses.
For example, if you’re purchasing a property for AED 2 million with a mortgage covering 80% of the value, your estimated fees might look like this:
| Fee Type | Percentage/Amount | Estimated Cost (AED) |
|---|---|---|
| Property Transfer Fee | 2% | 40,000 |
| Mortgage Registration Fee | 0.9% of loan (1.6M) | 14,400 |
| Broker Fee | 2% | 40,000 |
| NOC Fee | Fixed | 3,000–5,000 |
| Bank Valuation | Fixed | 2,500–3,500 |
| Legal/Admin Fees | Approximate | 5,000–8,000 |
| Total Estimate | ~5% of price | ~105,000 AED |
This calculation highlights how fees can accumulate. Factoring them in from the start ensures there are no surprises when the sale reaches completion.
While these costs may seem substantial, Abu Dhabi’s fee structure remains one of the most buyer-friendly in the UAE. Compared to Dubai’s 4% transfer fee and varying mortgage costs, Abu Dhabi’s consistent 2% registration rate and 0.9% mortgage fee make property purchases more predictable and often more affordable.
Additionally, there are no annual property taxes, and no capital gains tax upon resale major advantages for both residents and international investors. This predictability continues to attract overseas buyers and long-term residents who see Abu Dhabi as a stable, transparent market.
In 2025, Abu Dhabi’s real estate market continues to offer buyers a fair and transparent framework, but clarity on fees is crucial. The Abu Dhabi property transfer fee percentage remains at 2% for freehold and 1% for leasehold, while the Abu Dhabi mortgage registration fee percentage 2025 is set at 0.9% of the loan amount.
Together with brokerage, legal, and NOC fees, these charges form the backbone of transaction costs for property buyers. When planned for in advance, they are manageable and they protect both parties by ensuring the transaction is properly registered and legally sound.
For anyone entering the market this year, the key takeaway is preparation. Knowing what to expect and budgeting for these percentages allows you to move confidently through Abu Dhabi’s property market without the fear of hidden costs or last-minute surprises.
As a rule of thumb, always assume about 5% of your property’s value will go toward fees and administrative charges. It’s a small price for peace of mind and a smooth entry into one of the region’s most stable real estate markets.
