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What is the Real Estate Agent Commission in Dubai?

Standard Rates, VAT, Who Pays, RERA Forms, and the 2025 Mortgage Rule Investors Must Budget For

What is the real estate agent commission in Dubai? In most residential transactions, Dubai’s market norm is 2% of the property sale price for resale (secondary market) purchases and 5% of the annual rent for residential rentals. These are common benchmarks (not fixed by law), so the final fee can be negotiated and must be clearly written in the relevant RERA forms and agreements.

Real estate commission in Dubai is a core transaction cost that affects net yield, upfront cash required, and the true entry price of an acquisition. Commission is charged for brokerage services in sales and rentals, usually calculated as a percentage of the sale price or annual rent. Market practice is widely understood, yet outcomes vary because terms are negotiable and must be recorded correctly. A clear commission clause reduces disputes and prevents late-stage surprises during signing or transfer.

Commission planning matters across Dubai’s prime and growth districts. A 2% fee on a high-value apartment in Dubai Marina or Downtown Dubai can represent a material cash outflow at completion. Investors building rental exposure in Business Bay or Jumeirah Village Circle also model leasing commissions, renewal friction, and vacancy risk. Lifestyle-led capital flows into Palm Jumeirah and family communities such as Dubai Hills Estate bring the same requirement: transparent, documented fees.

Standard Commission in Dubai: Sales and Rentals (Quick Benchmarks)

As a budgeting baseline, most investors use the following Dubai real estate commission benchmarks:

  • Residential resale (secondary market): typically 2% of the sale price
  • Residential rentals: typically 5% of the annual rent (often with a minimum fee for lower rents)
  • VAT: brokerage services are typically subject to 5% VAT on the commission amount (confirm if a quote is VAT-inclusive)

Dubai Real Estate Commission + VAT: How the Numbers Work

Dubai broker commission is a service fee. In many transactions, agencies apply 5% VAT on the commission. That means VAT is calculated on the commission amount, not on the full sale price or annual rent.

Example (resale): If the property price is AED 2,000,000 and the commission is 2%, the commission is AED 40,000. VAT at 5% on AED 40,000 is AED 2,000. Total becomes AED 42,000 if VAT is added separately.

Who Pays the Real Estate Agent Commission in Dubai?

Commission payment responsibility depends on the deal structure and what is written in the brokerage paperwork:

  • Resale transactions: often buyer pays, but seller-paid or split structures are possible.
  • Rentals: typically tenant pays, though landlord-paid deals can exist (especially corporate leases).
  • Off-plan: often developer pays the broker (buyer may pay 0% directly).

RERA Forms and Documentation: Where Commission Must Be Written

  • Form A: agreement between the seller/landlord and the broker
  • Form B: agreement between the buyer and the broker
  • Form F: final sales agreement between buyer and seller (commonly called the MOU)
  • Form I: broker-to-broker collaboration form when two agencies participate in a deal

Investors and end users should ensure the commission clause is consistent across forms, invoices, and the final agreement—especially when multiple brokers, exclusivity, or negotiated splits are involved.

The 2025 Mortgage Rule: Broker Fees and DLD Fees Not Financed by Banks

From February 1, 2025, market reporting indicated UAE banks were instructed to stop financing Dubai Land Department (DLD) registration fees and real estate broker fees within mortgage loans. The practical effect is higher upfront cash requirements for mortgage buyers because these fees are paid outside the financed loan amount.

A mortgage buyer should budget for deposit, DLD fees, brokerage commission, VAT on brokerage services, valuation fees, and admin charges—without assuming they will be rolled into the loan.


Join Aurantius Real Estate: Faster Payouts, Higher Splits, Verified Leads, and Real Support for Closers

Many agents in Dubai face the same problems: slow commission payouts, inconsistent lead quality, limited marketing support, and a “same split every year” structure that doesn’t reward performance. If you’re a closer, you need a brokerage that’s built to help you close more, get paid faster, and scale your monthly income.

Aurantius Real Estate is structured for high-performing agents with a clear focus on execution, verified lead flow, and real operational support—so you spend less time chasing and more time closing.

What you get at Aurantius:

  • 30% instant commission on eligible off-plan deals (stop waiting months to get paid)
  • 55% to 80% commission structure based on performance and contribution
  • Daily verified qualified leads (less time filtering, more time presenting)
  • Marketing & admin support to speed up client handling and paperwork
  • Luxury cars & driver support for client meetings (premium experience that helps conversion)
  • +6% annual bonus potential for consistent closers

Whether you’re starting in leasing, transitioning into sales, or already operating in the mid-to-luxury segment, Aurantius is built to support a clean growth path: better lead quality, better conversion support, and faster payout culture.

Aurantius Commission Structure

Below is a sample structure showing how payouts and splits can be positioned. Final terms vary based on role, performance, and agreement.

Commission Category Typical Market Practice (Dubai) Aurantius Agent Payout Model (Example) Notes
Resale (Secondary) – Residential ~2% of sale price (+ 5% VAT on commission) 55% – 80% of brokerage commission Split depends on performance, pipeline, and role.
Rentals – Residential Leasing ~5% of annual rent (often tenant-paid; minimum fee may apply) 55% – 80% of leasing commission Leasing stage is often the fastest ramp to consistent income.
Off-Plan Often developer-paid commission (buyer pays 0% directly) 30% instant commission (eligible deals) + remaining per plan Designed to reduce 3–6 month payout delays common in the market.
Annual Bonus Not always offered +6% annual bonus potential Criteria-based (performance & consistency).
Support & Lead Flow Varies (often inconsistent) Verified leads + marketing & admin support Operational support improves conversion and repeat business.

Disclaimer: The table above is presented as an example for clarity. Commission splits, payout timing, eligibility (including “instant commission”), and bonus terms depend on agent agreement, role, and performance criteria.

Apply to Join Aurantius Real Estate

If you know your value and want a brokerage that rewards closers with faster payouts, higher splits, verified leads, and real support, apply to join Aurantius.

Email: [email protected]
Website: Aurantius Real Estate

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