How Much Is Real Estate Agent Commission in Dubai? (2026 Guide)
If you're buying, selling or renting a property in Dubai, agent commission is one of the biggest costs after government fees, so it helps to know the numbers before you sign.
In Dubai, the common market rate is 2% of the sale price on resale purchases and 5% of the annual rent on residential leases, plus 5% VAT on the commission.
These are market practices, not rates set by law. The Dubai Land Department says a broker's commission is decided by the agreement between the parties. If the agreement doesn't specify it, the prevailing custom applies.
Typical Real Estate Agent Commission in Dubai
| Transaction | Common commission | Who usually pays? |
|---|---|---|
| Buying a resale property | 2% of sale price + VAT | Buyer |
| Selling a property | As agreed with the agency | Seller, if agreed |
| Renting a residential property | 5% of annual rent + VAT | Tenant |
| Buying off-plan from a developer | Usually no separate buyer commission | Developer usually pays the agency |
These are typical arrangements, so check who pays what in your own contract.
Example: Commission on a Property Sale
If you're buying an apartment for AED 1,500,000 at a 2% commission:
- Agent commission at 2%: AED 30,000
- VAT at 5% on the commission: AED 1,500
- Total agent fee: AED 31,500
This is separate from Dubai Land Department fees and other purchase costs. See our guide to the full cost of buying property in Dubai for the complete picture.
Is Real Estate Commission Negotiable in Dubai?
Yes. No fixed percentage applies, so the rate is whatever you and the agency agree. DLD says the brokerage contract must state the commission rate, along with the parties, the property and the agreed amount.
Before signing, confirm:
- The commission percentage, and whether VAT is included
- Who pays it
- When it becomes payable
- Whether a minimum fee applies
When Is the Commission Paid?
For a sale, DLD says the broker receives the commission after the sale contract is concluded and registered with DLD, unless the brokerage contract says otherwise. So check your contract for any different timing, especially if a deal could be cancelled.
If no deal goes through, DLD says a broker can't claim expenses or costs unless the brokerage contract allows it.
What If More Than One Broker Is Involved?
With an exclusive agreement, the property can't be offered through another broker. With a non-exclusive agreement, you can contract with more than one.
Where brokers work together on one transaction, DLD says the fee is divided according to the contract. Ask how this works before you sign, so you aren't charged twice.
Check the Broker Is Licensed
DLD says a broker can lose the right to a commission if they aren't licensed by the Real Estate Regulatory Agency, or if they act for the other party against your interests.
You can check a company on DLD's list of licensed real estate brokerage companies. Our guide on how to choose a real estate agent in Dubai covers what else to look for.
If you're selling, our guide to selling property in Dubai explains where commission fits in the wider process.
Buying, Selling or Renting in Dubai?
Our team can help you explore properties and understand your transaction costs before you commit. Contact Seven Century Real Estate to get started.
Commission rates are indicative and vary by agency, property and agreement. Confirm all charges in writing before signing.