Real estate agent commission in Dubai explained: typical rates for buying, selling and renting, who pays, VAT, off-plan and how to check your broker.
Agency fees are one of the first costs buyers, sellers and tenants ask about, and one of the most misunderstood. Real estate agent commission in Dubai follows a well-established market pattern, but the exact figure you pay is the one written into your agreement with the broker, not a number set in stone. Searches such as "real estate agent commission law Dubai", "real estate broker fees Dubai" and "real estate agent percentage in Dubai" show how often people want to know whether the usual rate is a rule or a convention. This guide explains the typical rates, who pays them, where they are recorded and how to make sure you are dealing with a licensed broker.
Real estate agent commission in Dubai: the usual rates
For a residential resale, the market norm is 2% of the purchase price plus 5% VAT, payable by the buyer to their broker. Sellers who list with an agency usually agree a fee too, commonly also around 2% plus VAT, recorded in their own agreement with the broker. Fees are lower in Dubai than in many Western markets, where 5% or more is common, which is one reason the 2% figure is quoted so widely.
- Buying a ready home (resale): typically 2% of the price plus VAT, paid by the buyer.
- Selling a ready home: typically around 2% plus VAT, paid by the seller where they have agreed it with their agent.
- Buying off-plan from a developer: the developer normally pays the broker, so the buyer usually pays no agency fee on the primary sale.
- Commercial property: fees vary more widely and depend on the deal and what the agent is asked to do.
- Renting a home: tenants commonly pay around 5% of the annual rent plus VAT, often subject to a minimum fee.
Is the 2% commission fixed by law?
Sources disagree on the wording, but the practical answer is the same: what binds you is the signed contract. Some guides describe 2% as the regulated standard, while others point out that the regulator has not published a fixed rate and that a different fee is not unlawful if both parties agree to it in writing. Either way, the rate should never come as a surprise. It is agreed before the deal moves forward and set out in the official Real Estate Regulatory Agency (RERA) forms.
- Form A is the agreement between the seller and their broker. It authorises marketing and records the agreed commission and the term.
- Form B is the agreement between the buyer and their broker, and records the fee the buyer will pay.
- Both are standard RERA forms, so read the commission clause before you sign and ask for anything unclear to be changed in writing.
Commission is negotiable. On larger transactions, exclusive mandates or straightforward deals, it is reasonable to ask whether the fee can be adjusted. A good broker will explain what the fee covers rather than simply quoting a number.
When and how commission is paid
On a resale, the agency fee is usually settled at the point the transfer is registered with the Dubai Land Department, often by manager's cheque alongside the other transfer-day payments. Payments should always go through traceable channels, and the fee should be paid to the licensed brokerage, not to an individual. Budget for it in cash alongside your deposit and the DLD transfer costs.
For rentals, the agency fee is part of the upfront cost of securing a home, so confirm the amount before you agree terms. Some landlords advertise "zero commission" homes, where the landlord covers the agent instead, so it is worth asking before you commit.
The fair commission is the one you agreed in writing, with a licensed broker, before any money changed hands.
Check that your broker is licensed
Only brokers licensed by the Dubai Land Department may arrange property transactions. The DLD's free verification service, available on its website and in the Dubai REST app, confirms the licences and permits issued to real estate practitioners through the Trakheesi system, with results shown immediately. Before you sign Form A or Form B:
- Ask for the broker's registration number and the agency's office registration number, and check them through the DLD service.
- Make sure any advert you respond to carries a valid Trakheesi permit number.
- Confirm that the name on the broker's card matches the agency issuing the agreement and the invoice.
- Never pay a fee in cash to an individual or before an official agreement is signed.
Commission on plots and land
Plot sales follow the same resale pattern: the agency fee is agreed in the RERA forms and sits alongside the DLD transfer fee and any master developer NOC charge. Because land has fewer comparable sales and more paperwork to check, such as the affection plan and permitted use, the value a specialist broker adds is often in the due diligence rather than the introduction alone.
Frequently Asked Questions
On a residential resale the market norm is 2% of the price plus 5% VAT, paid by the buyer, and sellers usually agree a similar fee with their own agent. Tenants commonly pay around 5% of the annual rent plus VAT.
