Real Estate Commission
Calculator Dubai
Calculate exact agent commission fees for any Dubai or UAE property sale. Includes 5% VAT, buyer vs seller scenarios, RERA standard rates, and net proceeds breakdown — in seconds.
Includes VAT
RERA Rates
Dubai & UAE
Free Tool
Standard Commission Rates in the UAE
How Agent Commission Works in Dubai
Dubai real estate commission is regulated by RERA but the rate itself is market-driven. Here’s how it’s structured and who pays what in each transaction type.
Agree Commission Rate
Standard is 2% for sales, 5% for rentals. Must be documented in a RERA Form A (seller) or Form B (buyer) before the transaction.
Calculate Base Amount
Commission = Sale Price × Rate. For AED 2,000,000 at 2% = AED 40,000 base commission before VAT.
Add 5% UAE VAT
5% VAT is added to the commission amount. AED 40,000 commission + AED 2,000 VAT = AED 42,000 total.
Clarify Who Pays
Buyer typically pays on secondary sales. Developer pays on off-plan. Rental commission is paid by tenant or landlord depending on agreement.
Everything You Need to Know About Agent Fees Dubai
Real estate commission in Dubai is not fixed by law — RERA provides a framework but rates are negotiated between parties. The widely accepted market standard is 2% for sales and 5% for annual rentals, paid on the completed transaction.
All registered real estate agents and agencies in Dubai must have a RERA licence. Commission can only be legally charged by RERA-licensed brokers. You should always verify an agent’s licence through the Dubai REST app or the RERA broker registry.
For off-plan sales, developers pay commission to agents directly (ranging from 3–8% depending on project and sales velocity). Buyers pay nothing to the agent in off-plan transactions — the developer absorbs the full cost.
RERA Form A & Form B
Form A is the listing agreement with the seller. Form B is the buyer representation agreement. Both must be signed before any commission is earned. Commission is only payable upon successful transfer at DLD.
When Is Commission Paid?
Commission is paid at the time of DLD transfer for sales, or at the time of signing the tenancy contract (Ejari registration) for rentals. It should never be paid until the transaction is legally completed.
Double Commission Risks
In Dubai, if both buyer and seller have separate agents, each party pays their own agent. Ensure all commission agreements are in writing — verbal agreements are unenforceable at DLD.
Commission Rates by Transaction Type in the UAE
| Transaction Type | Standard Rate | Who Pays | VAT | Notes |
|---|---|---|---|---|
| Residential Sale (Secondary) | 2% | Buyer | +5% | Market standard; negotiable |
| Residential Sale (Off-Plan) | 3–6% | Developer | +5% | Paid by developer to agent |
| Annual Tenancy (Residential) | 5% | Tenant | +5% | Based on annual rent value |
| Annual Tenancy (Commercial) | 7.5–10% | Tenant | +5% | First year typically |
| Luxury / Ultra-Prime Sale | 2–4% | Buyer / Seller | +5% | Often split between parties |
| Plot / Land Sale | 2% | Buyer | +5% | Same as residential standard |
| Short-Term Rental | No fixed rate | Landlord | +5% | Property management fees apply |
| Abu Dhabi Residential Sale | 2% | Buyer | +5% | Same as Dubai standard |
Commission Considerations for Buyers & Sellers
For Property Buyers
Budget 2% + VAT on top of your property price for agent commission, plus 4% DLD transfer fee. For a AED 2M property, total buyer costs (excl. mortgage) can reach AED 250,000+. Use our Buyer Cost Calculator for full breakdown.
For Property Sellers
Commission is typically paid by the buyer in Dubai, but sellers sometimes offer to pay it to attract more buyers or close faster. If you are selling, understand whether your agent holds a valid Form A and is the exclusive or non-exclusive agent for your property.
For Real Estate Agents
Track your earned commission per transaction using this calculator. Factor in brokerage splits (typically 50–70% to agent) when calculating your take-home per deal. Use our Broker Split Calculator for agent vs agency breakdowns.
For Off-Plan Investors
When buying off-plan, you pay zero commission — the developer pays the agent 3–6%. However, some developers bundle commission into pricing. Always compare the AED per sqft price vs secondary market before assuming off-plan is cheaper.
For Landlords
5% rental commission on a AED 120,000 annual rent = AED 6,000 + AED 300 VAT = AED 6,300 per tenancy. If you re-list annually with the same tenant through an agent, you pay this on each renewal unless you negotiate a fixed management fee.
For Portfolio Investors
Across a portfolio of 10 properties, commission and transaction costs can significantly impact net returns. Always model acquisition costs (DLD 4% + commission 2%) and exit costs (commission 2%) into your ROI calculations from Day 1.
More Free Real Estate Calculators
Buyer Cost Calculator
Full Dubai property purchase cost — DLD fees, mortgage registration, agency commission, trustee fees.
Free · No Login
Property Valuation Tool
Estimate market value of any Dubai property instantly with area and specification inputs.
Free · No Login
Price Per Sq Ft Calculator
Calculate and benchmark PSF against Dubai community averages from DLD data.
Free · No Login
Service Charge Calculator
Estimate annual RERA service charges by property size and Dubai community.
Free · No Login
ROI Calculator Dubai
Net investment return including purchase costs, service charges, and rental income.
Free · No Login
Rental Yield Calculator
Gross and net rental yield with all Dubai-specific expenses modelled accurately.
Free · No Login
Commission Questions Answered
Everything buyers, sellers, landlords, and agents need to know about commission fees in Dubai.
The standard agent commission for residential property sales in Dubai is 2% of the agreed sale price plus 5% UAE VAT. For a AED 2,000,000 property, that is AED 40,000 + AED 2,000 VAT = AED 42,000. For rentals, the standard is 5% of annual rent. These are market standards — not legally mandated fixed rates.
Yes. Commission is negotiable in Dubai and there is no RERA-mandated fixed percentage. However, most reputable brokerages maintain 2% as their standard rate. Accepting a reduced commission can affect service quality and the agent’s motivation to achieve the best price. For luxury properties, some agents operate on 1.5–2% depending on ticket size.
No — as a buyer of off-plan property in Dubai, you do not pay agent commission. The developer pays the agent (typically 3–6% depending on the project) directly from the project margin. However, this cost is often embedded in the pricing model. Always compare off-plan AED/sqft vs secondary market to evaluate true value.
Commission is legally earned and payable upon completion of the transaction — meaning transfer of title at DLD for sales, or signing and Ejari registration for rentals. Agents should not receive commission before the deal completes. The commission is typically paid on the same day as the DLD transfer, either by manager’s cheque or bank transfer.
If a sale falls through before DLD transfer, commission arrangements depend on the MOU (Memorandum of Understanding) terms. Most Dubai MOUs specify that commission is refunded if the deal collapses through no fault of either party. If a party defaults, the defaulting party may forfeit their deposit (10% SPA) and the commission situation should be explicitly addressed in the MOU.
The agent’s take-home depends on their split with their brokerage. Typical agency/agent splits in Dubai range from 50/50 to 70/30 (agent’s favour). On a AED 2M sale with 2% commission (AED 40,000), an agent on a 60% split earns AED 24,000 before tax. Senior agents and team leaders may negotiate 75–80% splits at established Dubai brokerages.
Building or Growing a Dubai Real Estate Business?
AgentAdvisor.ae helps Dubai brokerages build CRM systems, streamline commission tracking, manage agent performance, and scale operations. Talk to a specialist with 12+ years in UAE real estate.
Building or Growing a Dubai Real Estate Business?
AgentAdvisor.ae helps Dubai brokerages build CRM systems, streamline operations, manage agent performance, and scale. Talk to a specialist with 12+ years in UAE real estate.
Stay Ahead in Dubai Real Estate
Get expert insights, market updates, smart tools, and CRM frameworks delivered directly to your inbox.
No spam. Unsubscribe anytime. UAE real estate insights only.