Real Estate Commission in Dubai Guide – Who Pays it & How Much?

The real estate commission in Dubai is one of the most frequently asked questions by property seekers, whether they’re renting, buying, selling, or investing. Commission fees are a standard part of every property transaction in the city, and understanding how they work helps you plan your budget confidently and avoid surprises later.

• Understanding real estate commission in Dubai
• What is a real estate commission?
• Why the structure of real estate commission in Dubai matters for buyers, sellers, and tenants
• Standard commission rates in Dubai (2025)
• Who pays the real estate commission in Dubai?
• How commission is calculated and paid
• RERA and DLD regulations on agent commissions
• Commission comparison table
• Key takeaways
• Frequently asked questions (FAQs)

Understanding real estate commission in Dubai

When you enter the Dubai property market, you’re often working with a real estate agent, someone who guides you through viewings, negotiations, paperwork, and closing. Their service is compensated through real estate commission in Dubai, a fee linked to the property’s value or rental amount.

This fee varies depending on whether you’re handling a rental, resale, commercial space, or off-plan property. For buyers, sellers, and tenants, commission determines part of the transaction cost, which is why understanding it early on makes the process smoother.

During the search phase, many people also explore understanding rights as a property buyer through trusted guides to feel more prepared for the journey.

What is a real estate commission?

In simple terms, real estate commission is the professional fee paid to a licensed real estate agent or brokerage for managing your transaction. It covers everything from property sourcing to negotiation and documentation.

Many property seekers rely on finding a reliable real estate agent in Dubai, especially when they want strong negotiation support or help navigating market conditions.

Real estate agent commission in Dubai is mandatory, regulated, and always documented through RERA forms to ensure transparency for all parties.

Why does the structure of real estate commission in Dubai matter for buyers, sellers, and tenants?

The structure of real estate commission in Dubai differs depending on your role in the transaction.

• Buyers pay commission in secondary market (resale) deals.
• Tenants pay commission when renting.
• Developers pay commission for off-plan properties.
• Sellers may pay commission when signing exclusive agreements.

Understanding these rules helps you budget correctly. For renters, this is especially important since renting in Dubai often comes with additional costs such as deposits, cheques, and agency fees. Many tenants learn about these by being aware of the extra costs that come with renting.

Standard commission rates in Dubai (2025)

Commission rates follow guidelines commonly used across the industry and are subject to 5% VAT. This breakdown helps clarify how much commission for real estate agents is typically applied across the different types of property transactions in the city.

Residential property sales

• 2% of the sale price (typically paid by the buyer)
• 1–1.5% for luxury properties (AED 10 million+), often negotiable
• VAT applies

Explore the Available Properties for Sale in Dubai

Residential property rentals

• 5% of annual rent or AED 5,000, whichever is higher
• Paid by the tenant
• VAT applies

This fee helps cover the agent’s work in securing your lease, verifying documents, and supporting you until contract signing. Many renters also check out what you should realistically budget for rent when calculating upfront costs.

Explore the Available Properties for Rent in Dubai

Commercial property sales

• 2% to 5% of the sale price
• Paid by either buyer or seller, based on agreement
• VAT applies

Commercial property rentals

• 5% to 10% of annual rent
• Paid by the tenant
• VAT applies

Off-plan property sales

• 2% to 8%, but the developer pays this fee, not the buyer
• Buyers pay zero commission
• VAT applies

Agents involved in off-plan sales are typically compensated directly by developers, making this option attractive to many buyers.

Explore the Available Off-plan Properties for Sale in Dubai

Who pays the real estate commission in Dubai?

Commission responsibilities vary depending on the type of transaction.

Secondary market sales

• Buyer pays 2% commission + VAT.
• Sellers may pay commission only if they have an exclusive listing agreement; some choose exclusivity after learning about why some sellers choose exclusive brokerage agreements.

Off-plan sales

• Developers pay commission.
• Buyers pay nothing.

Rental transactions

• Tenants pay 5% or AED 5,000, whichever is higher, plus VAT.
• Landlords may pay 0% to 8% depending on property management agreements.

Commercial transactions

• In sales, either the buyer or the seller pays commission based on negotiation.
• For rentals, tenants pay commission.

How commission is calculated and paid

Calculating real estate commission in Dubai is straightforward: it’s a percentage of the sale price or annual rent.

Commission calculation examples

• Resale apartment example:
  Sale price AED 1,000,000 → Commission AED 20,000 + VAT AED 1,000 = AED 21,000
• Rental example:
  Annual rent AED 100,000 → Commission AED 5,000 + VAT AED 250 = AED 5,250

Payment process

• Commission is paid after keys are handed over.
• Payments must go through approved escrow channels or brokerage firms.
• RERA Forms A (Seller Agreement) and B (Buyer Agreement) clearly outline commission terms.

At this stage, many sellers also refer to getting a home market-ready before listing it, especially when preparing for viewings and agent appointments.

RERA and DLD regulations on agent commissions

The real estate agent commission in Dubai is governed by strict regulatory rules to protect everyone involved. These regulations also provide transparency on the real estate agent commission in Dubai, ensuring every fee is clearly documented and compliant with RERA standards.

Licensing requirements

• Only RERA-licensed brokers can legally handle transactions.
• Verification can be done through the Dubai REST App or the DLD website.

This is where working with experienced and verified professionals, such as a Property Finder SuperAgent, known for fast response times and a strong track record, can make a meaningful difference.

Commission transparency

• Rates must be clearly stated in contracts.
• All commissions are subject to 5% VAT.
• Payments must be processed through traceable, official channels.

Multiple agents and commission splits

• All agents involved must be registered with DLD.
• The commission is often split 50:50.
• Every agent who contributes to closing the deal must be compensated.

For buyers and investors who like to analyse trends before engaging with agents, Property Finder’s Data Guru provides a complete view of community prices, historical transactions, and market patterns.

Commission comparison table

Key takeaways

The real estate commission in Dubai plays a major role in every property transaction, and understanding how it works helps you make confident, well-informed decisions. Buyers typically pay 2% for resale properties, while tenants pay 5% for rentals. Commercial commissions vary depending on the deal size, and off-plan buyers benefit from developer-paid commissions. Every transaction must follow RERA regulations, ensuring that all commission terms are transparent, traceable, and handled by licensed professionals.

FAQs

Navigating real estate commission in Dubai becomes much easier when you understand who pays, how fees are calculated, and what regulations protect you along the way. With clear rules from RERA and the support of trusted, licensed agents you can find through the Find Agent tool, every step of your property journey can feel more transparent and empowering. Whether you’re renting, buying, or selling, being informed helps you move forward with confidence in a fast-moving market.

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