By Mehak Ishfaq 
Almost every property deal in Dubai involves an agent. And almost every client asks the same question at some point: how much is this actually going to cost me?
The honest answer is, it depends. On the type of deal, On who’s involved, On what’s actually written into the agreement you signed (or are about to sign). This guide walks through the standard rates, who pays what, and what RERA does and doesn’t control plus the mistakes that trip up first-timers more often than you’d think.
Key Takeaways
- Resale commission is typically 2% of the sale price.
- Rentals usually run 5% of the annual rent, sometimes with a flat minimum on smaller contracts.
- Off-plan? The developer pays, not the buyer.
- VAT adds another 5%, charged on the commission, not the property value.
- RERA controls licensing and conduct. It does not fix the commission percentage.
- Every agency is a little different. Get the number in writing before you agree to anything.
How Much Is the Real Estate Commission in Dubai?
It changes depending on what kind of transaction you’re doing.
Resale (secondary market) properties. The going rate is 2% of the sale price. Sell a property for AED 2,000,000, and you’re looking at AED 40,000 in commission before VAT gets added on top.
Rental properties. Usually 5% of the annual rent. For cheaper rentals, where 5% would work out to a fairly small number, many agencies switch to a flat minimum fee instead, often somewhere between AED 3,000 and AED 5,000.
Off-plan properties. Here’s the part that surprises a lot of buyers: if you’re purchasing directly from a developer, you typically pay zero commission. The developer covers it as a marketing cost. It’s one of the reasons off-plan deals can look cheaper upfront.
Commercial property. Sales commission lands somewhere between 2% and 5%. Rentals are higher, often 5% to 10% of the annual rent, since commercial leasing tends to involve more back-and-forth.
None of these numbers are carved in stone. They’re market norms. The actual figure on your deal can shift depending on the brokerage, the property, and what gets negotiated.
Who Actually Pays the Commission?
This trips people up constantly, mostly because the answer changes depending on what you’re doing.
- Buying resale: you pay, calculated on the sale price.
- Renting: the tenant pays, calculated on annual rent, due when the tenancy contract is signed.
- Buying off-plan: the developer pays. Not you.
- Landlords: you might pay a separate management fee anywhere from 0% to 8% depending on how much the agency actually does for you. Marketing, tenant sourcing, viewings, maintenance coordination, all of that factors in.
Sellers generally don’t pay anything unless it’s specifically written into a signed listing agreement.
Does VAT Apply to the Real Estate Commission?
Yes 5% VAT, charged on the commission amount. Not on the property price. That distinction matters more than people realize.
Take that AED 40,000 commission from earlier. Add 5% VAT, and you’re paying AED 2,000 more, bringing the total to AED 42,000. This sits completely separate from the Dubai Land Department’s transfer fee, which is its own calculation based on property value.
Three separate costs. Commission, VAT, DLD transfer fee. Lump them together into one rough guess, and you’ll probably be under budget. It’s one of the most common mistakes first-time buyers make.
Want the fuller breakdown of what a Dubai purchase actually costs beyond commission? Our guide on the real costs of buying property in Dubai covers transfer fees, registration, and the other line items people forget to budget for.
What Does RERA Actually Regulate?
The Real Estate Regulatory Agency sits under the Dubai Land Department, and it handles licensing, conduct, and documentation standards for brokers across Dubai. What it does not do is set a fixed commission percentage by law.
So what does RERA actually require?
Licensing. Every agent needs a valid RERA licence. No licence means no legal right to collect commission and if you do pay an unlicensed agent, you’ve got zero legal protection if something goes wrong later.
Payment method. The commission should go to the brokerage by cheque, not into an individual agent’s personal account. This isn’t just bureaucracy, it creates a paper trail that protects everyone if a dispute comes up. If an agent asks for cash, or asks you to make the check out to them personally, that’s worth pausing on.
Standard forms. There’s a defined set of paperwork involved:
- Form A the listing agreement between seller and brokerage
- Form B the buyer representation agreement
- Form F the memorandum of understanding between buyer and seller
- Form I the final commission agreement
These exist so everyone knows exactly what was agreed to, commission rate included, before any money moves. No Form A signed? The agent doesn’t really have a documented claim to commission if the property sells.
Checking an agent’s licence status takes about thirty seconds through the Dubai REST app. Do it before you sign anything. It’s a small step that saves a lot of potential headaches.
Commission Structures Vary: Why You Should Always Confirm in Writing
The percentages above are common, but they’re not universal. What actually changes the number on your deal:
- The brokerage’s own internal policy
- Which developer is involved, especially for off-plan
- How complex or high-value the property is
- Whether one agent handled everything or multiple agents collaborated
- Whatever specific terms got negotiated and put in writing
Because of all that variation, there’s really only one reliable approach: ask for a written breakdown before you sign anything. A good broker gives you this upfront. Anyone hesitant to put numbers on paper is a flag worth noticing.
If location and yield are part of your decision-making, our piece on the best areas to buy property in Dubai for rental yield is worth a look alongside this.
What Happens When Multiple Agents Are Involved?
Rental listings can have more than one agent representing the same property. Resale listings cap out at three agents per property.
Either way, whoever actually closes the deal gets the commission. Two agents work together to bring a sale together? They split it, usually according to a signed Agent-to-Agent agreement made before the deal closes. One agent does it alone? They keep the full amount.
This matters more than people think when a buyer or seller has signed with multiple brokers. Without clear terms in writing, things get messy fast over who’s actually owed what.
Common Mistakes to Avoid
A handful of issues come up again and again:
Paying in cash, or to a personal account. Kills the paper trail RERA is built around. Don’t do it.
Treating 2% or 5% as legal minimums or maximums. They’re not. They’re norms. Confirm the real number for your specific deal.
Skipping the RERA licence check. Takes thirty seconds. Saves you from dealing with someone whose commission claim has zero legal standing.
Not actually reading the agreement. Commission rate, who pays, when it’s due it should all be spelled out in Form A, Form B, or whatever you’re signing. Read it.
Forgetting the other costs. The commission is just one piece. DLD transfer fees, VAT, mortgage registration charges all add up separately, and together they’re often bigger than the commission itself.
If you’re an agent just starting out, getting these structures right from day one matters more than it might seem. Our guide on how to become a real estate agent in Dubai covers the licensing path step by step.
Frequently Asked Questions
Is the real estate commission in Dubai legally fixed at 2%?Â
No. That 2% figure on resale deals is standard market practice, not a legal rate. RERA handles licensing and conducts the actual percentage comes down to what’s agreed and documented between the parties.
Who pays the agent’s commission when renting a property in Dubai?Â
The tenant does, usually 5% of the annual rent, paid when the tenancy contract gets signed. Cheaper rentals sometimes carry a flat minimum fee instead.
Do buyers pay commission on off-plan properties?Â
Usually not. Buy directly from a developer, and the developer pays the brokerage’s marketing fee. The buyer isn’t charged separately.
Is VAT charged on top of the real estate commission?Â
Yes, 5% on the commission itself. This is separate from the Dubai Land Department’s property transfer fee, which is based on property value, not commission.
How can I confirm an agent is legally licensed in Dubai?Â
Check their RERA registration through the Dubai REST app or directly through the Dubai Land Department. An unlicensed agent’s commission claim carries no legal protection if a dispute comes up.
Commission structures vary by agency, developer, and individual agreement. The figures above reflect common market practice and are meant as a general reference, not a guarantee. Always get a written breakdown from your broker before signing anything.