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Contact

USA/Canada

UAE

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Request a Call

© 2024 Totality Real Estate LLC. All rights reserved.

Contact

USA/Canada

UAE

UK

Request a Call

© 2024 Totality Real Estate LLC.

All rights reserved.

What is the commission rate for real estate agents in Dubai?

When buying or selling property in Dubai, it's important to understand how commission rates for real estate agents work. In 2024, the standard commission rate in Dubai typically ranges between 2% to 5% of the property’s sale price, depending on the type of transaction and agreement between the agent and the client. Here’s a detailed look into how these rates apply and what you can expect.

1. Standard Commission Rates for Sales

For property sales in Dubai, the most common commission rate is 2% of the final sale price. This is usually paid by the buyer at the time of closing the deal. While the seller might not pay a commission directly, the agency managing the property sale will receive their fee from the buyer’s side in most cases.

Some premium or exclusive listings may have higher commission rates, ranging from 3% to 5%, especially when more marketing efforts, advertising, or personalized services are involved. For example, high-end villas or luxury penthouses might attract a higher rate due to the additional efforts required to sell these unique properties.

2. Rental Property Commission

When it comes to renting properties in Dubai, real estate agents generally charge 5% of the annual rental amount as a commission fee. This is a one-time fee paid by the tenant, though some agencies might also charge the landlord depending on the specific terms of the deal.

For example, if you’re renting a property for AED 100,000 per year, the agent’s commission would typically be AED 5,000.

3. Off-Plan Properties and Developer Sales

If you’re purchasing an off-plan property, where you're buying directly from a developer, commissions work differently. Developers usually offer their own sales teams or partner with agencies, and the commission is often covered by the developer. In these cases, buyers don’t pay the agent directly, which can make off-plan properties an attractive option for many investors.

It’s worth noting that some agents might still charge an advisory or consulting fee, but this is less common in off-plan transactions where developers cover the commission.

4. Negotiating Commission Rates

While 2% to 5% is the industry standard, commission rates can sometimes be negotiated depending on the nature of the deal, the relationship with the agent, and the level of service provided. For instance, bulk buyers or investors purchasing multiple units might be able to secure a discounted rate.

Similarly, for sellers, an exclusive agreement with an agent could come with slightly lower rates in exchange for a guaranteed deal.

5. Market Trends and Competitive Environment

With Dubai’s booming real estate market in 2024, competition among agents has increased, especially in high-demand areas like Downtown Dubai, Palm Jumeirah, and Dubai Marina. This competition sometimes leads to more flexibility in commission rates, particularly in areas with a large volume of transactions. However, it’s essential to remember that lower commission rates may come with fewer marketing resources, potentially impacting the speed and quality of the sale or rental.

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