What is Agent Commission?
Agent commission is the fee paid to a licensed real estate broker or agency for facilitating a property transaction. In Dubai, commission rates are regulated by RERA and represent the primary revenue model for real estate agencies. Understanding commission structures helps buyers and sellers budget accurately and negotiate with confidence.
How Agent Commission Works in the UAE
RERA sets standard commission guidelines for Dubai:
- Sales commission: 2% of the property sale price, paid by the seller. This is the RERA standard, though some agencies may charge differently for off-plan properties where the developer pays the commission.
- Rental commission: 5% of the annual rent for residential properties and 5-10% for commercial leases, typically paid by the tenant.
- Off-plan commission: Paid by the developer to the agency, usually 3-7% of the unit price. The buyer does not pay additional commission in most off-plan transactions.
- Property management: Ongoing annual fee of 5-10% of rental income for managing the property on the owner’s behalf.
All commissions must be documented in writing, and the agent must hold a valid RERA broker card (BRN). Paying commission to an unlicensed agent provides no legal protection if disputes arise.
Practical Example
You are selling your apartment for AED 2 million through a licensed agency. The standard 2% commission is AED 40,000 plus 5% VAT (AED 2,000), totaling AED 42,000. This is paid upon successful completion of the sale at the trustee office. If instead you are buying off-plan from a developer, the developer pays the agency’s commission (say 5%, or AED 100,000) — you pay nothing to the agent. Always confirm who bears the commission before engaging an agency.
Why Agent Commission Matters for Investors
Commission is a real cost that affects your net return. For sellers, the 2% commission reduces your proceeds. For landlords, the 5% rental commission at each new tenancy is an annual cost that must be factored into yield calculations. We at UAE-Prop are transparent about our commission structure from the first conversation. We believe that clear fee communication builds trust and ensures our clients can make fully informed financial decisions. Our value lies in finding the right property, negotiating the best terms, and providing end-to-end transaction support — a service that consistently delivers returns far exceeding the commission paid.
