If you are buying, selling or renting in the emirate, one of the first questions you will ask is what the agent will cost you. The short answer is that most dubai real estate brokers charge around 2% of the sale price on a property sale and around 5% of the annual rent on a residential rental, plus 5% VAT on the commission. These are market norms rather than fixed rules, so the exact figure depends on the deal and what you agree in writing.

At Takween Aldar, a RERA-registered real estate agency in Dubai (ORN 52576, DLD Trade License No. 1512704) with over 12 years of market experience, we get this question every week. This guide walks through what commission usually looks like, who pays it, where there is room to negotiate, and what else belongs in your budget. If you would rather talk it through, you can book a free consultation with our team at any point.

The Short Answer: Typical Commission Rates in Dubai

Dubai does not have a single government-fixed commission rate. What you will see in practice are customary rates that most agencies follow, and they tend to look like this:

VAT of 5% is generally added on top of the commission itself, not on the property price. Treat these as typical market figures and always confirm the exact terms with your agent before you sign anything.

Commission When You Sell a Property

On a resale, the usual figure is around 2% of the agreed sale price. Who pays it is a point of negotiation rather than a rule. In many resale deals the buyer pays their agent and the seller pays the listing agent, and some agencies work on a different split. Your agreement will say which applies to you.

Here is a simple, hypothetical example. On a sale of AED 1,500,000, a 2% commission is AED 30,000. Add 5% VAT on the commission (AED 1,500) and the total is AED 31,500.

If you are the seller, it is worth reading the listing agreement carefully before you commit. Our Sellers Guide covers what to look for, and our article on what property sellers need to know before signing Form A explains the paperwork in plain language. You can also request a valuation through our sell my property page.

Commission When You Rent a Property

For residential annual rentals, the tenant commonly pays around 5% of the annual rent. The landlord's side varies a lot. Some landlords pay little or nothing, while others agree a fee for marketing and property management, depending on the scope of work.

Another hypothetical example: on an annual rent of AED 100,000, a 5% commission is AED 5,000, plus AED 250 VAT, so AED 5,250 in total.

Commercial leases and furnished or short-term arrangements can follow different structures, so do not assume the residential figure carries over. If you are renting, our Tenants Guide explains the costs you should expect. Landlords can find the equivalent breakdown in the Landlords Guide.

Who Pays the Commission on Off-Plan Purchases?

Off-plan works differently. When you buy directly from a developer through a registered agent, the agent's fee is usually agreed between the agency and the developer, and in most cases it is paid by the developer rather than added to your bill. That said, arrangements can vary by project and by agency, so ask your agent to confirm in writing whether any fee applies to you.

If you are new to buying before completion, our off-plan guide explains how payment plans and buyer protections work.

Is Commission Negotiable?

Yes, in principle. Because there is no fixed legal rate, commission is something you and the agent agree between you. Whether an agent will move on price usually depends on a few things:

• The value of the property. On higher-priced homes, some agents are open to a lower percentage.
• The scope of service. A full-service mandate with marketing, viewings, negotiation and paperwork support is different from a limited introduction.
• Exclusivity. Giving one agent an exclusive listing for a set period can sometimes open the door to better terms.
• Repeat business. Investors buying or selling several units often have more room to discuss fees.

A lower fee is not automatically a better deal. An agent who prices your home accurately and negotiates well can easily be worth more than the commission difference, so weigh the service you will receive alongside the percentage.

What to Expect From Dubai Real Estate Brokers on Fees

Good brokers are upfront about money from the first conversation. Before you agree to anything, you should expect the following:

1. A written agreement. The commission rate, who pays it, and when it becomes due should all be on paper. For sellers, this is typically the listing agreement.
2. A clear explanation of VAT. You should know whether the quoted figure includes or excludes the 5% VAT.
3. No surprise charges. Ask directly whether any other fees apply for viewings, marketing or paperwork.
4. A clear end date. If you sign an exclusive agreement, check how long it lasts and what happens if you change your mind.

Be cautious if an agent is vague about fees, pushes you to sign quickly, or asks for payment before there is any agreement in place. Those are good reasons to pause and ask more questions.

Other Costs to Budget For Beyond Commission

Agent commission is only one part of the picture. As a rough guide, buyers should plan for around 7% to 8% of the property value in total fees on top of the purchase price, though the exact amount depends on the property and the transaction. The main items usually include:

• The Dubai Land Department (DLD) transfer fee, commonly cited at 4% of the property value
• Agency or broker commission
• Trustee or conveyancing fees for the transfer
• NOC (no objection certificate) fees from the developer or community
• Mortgage-related fees, if you are financing the purchase

There is no annual property tax in Dubai, which keeps the long-term cost of ownership lower than in many other markets. For help with the transfer process itself, see our conveyancing service, and if you are financing the purchase, our mortgage advice guide is a good place to start. Our Buyers Guide pulls the full cost picture together.

How to Check Your Agent Is Properly Registered

Only licensed professionals should be charging commission on a Dubai property deal, so verify before you commit. A quick check takes a few minutes:

1. Ask for the agent's BRN. Every registered agent holds a Broker Registration Number issued by RERA.
2. Search the agent in the Dubai REST app. The app lets you confirm that the agent and their agency are registered.
3. Check the agency's details. Look for the agency's ORN and DLD trade licence number.
4. Ask to see the paperwork. For a sale or rental listing, the relevant form (such as Form A for a seller's listing agreement) should be provided and explained to you.

Our page on real estate brokers in Dubai explains what a properly registered agency looks like in more detail.

How Takween Aldar Approaches Fees and Commission

We believe you should know exactly what you are paying and why before you sign. Our consultants explain the commission structure at the start, put the terms in writing, and walk you through the other costs so there are no surprises later. Whether you are buying a first apartment, selling an investment unit or exploring apartments for sale in Dubai, the same principle applies: clear terms, honest advice and no pressure.

Ready to talk numbers for your own situation? Schedule a free consultation with our team and we will explain the fees that apply to your deal.

Final Thoughts

Commission in Dubai is simpler than it first appears. Expect roughly 2% on a resale, around 5% of annual rent on a residential rental, and a developer-paid arrangement on most off-plan purchases, with VAT added on the fee. Since these are market norms and not legal fixed rates, the smartest move is to compare the service as well as the price and get everything in writing. Choosing from among licensed Dubai real estate brokers who are open about fees from day one makes the whole process easier, whichever side of the deal you are on.

Frequently Asked Questions

Is real estate commission in Dubai fixed by law?

No. Dubai does not set a single legal commission rate. The figures people quote, such as around 2% on a sale and around 5% on a residential rental, are customary market rates. Because they are customary, the exact amount is agreed between you and your agent, so always have it confirmed in writing.

Does the buyer or the seller pay the commission?

It depends on the deal. On many resale transactions the buyer pays around 2%, and the seller may also pay their own agent. On off-plan purchases, the developer usually pays the agent. Your agreement should state who pays, so ask before you proceed.

Do agents charge commission on rentals?

Yes. For residential annual rentals, the tenant commonly pays around 5% of the annual rent, while the landlord's contribution varies depending on the services agreed. VAT is typically added on top of the commission.

Can I negotiate a lower commission?

Often you can, because the rate is not set by law. Property value, exclusivity, the scope of services and repeat business can all influence what an agent is willing to offer. It is worth comparing the service you will receive, not only the percentage.

Is VAT charged on top of agent commission?

Generally, yes. A 5% VAT is commonly added to the agent's commission, not to the property price itself. Always check whether a quoted fee includes or excludes VAT so the final number does not catch you off guard.