Introduction: Understanding Real Estate Commissions in Dubai’s Secondary Market

Dubai’s real estate landscape continues to evolve, with the secondary property market—also known as the resale market—playing a critical role in driving real estate transactions in 2025.
Whether you’re an investor acquiring a luxury villa in Palm Jumeirah, an expat buying an apartment in Dubai Marina, or a real estate agent managing high-end listings, understanding how agent commissions and brokerage fees work in Dubai is essential for making transparent, compliant, and profitable deals.

This in-depth guide covers:

• The latest RERA and Dubai Land Department (DLD) regulations on real estate commissions.
• Who pays the commission — buyer, seller, or both.
• How commission structures differ for apartments, villas, and commercial properties.
• Negotiation tips for investors and sellers.
• A practical table outlining key commission standards for brokers.

By the end, you’ll know how to structure deals confidently and ensure every transaction meets Dubai’s updated real estate compliance requirements.

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1. Understanding Dubai’s Secondary Real Estate Market

Dubai’s property market operates under two main segments:

Market Type	Description	Common Participants
Primary Market (Off-Plan Properties)	Buying directly from developers before completion.	Developers, first-time investors, overseas buyers.
Secondary Market (Resale Properties)	Reselling completed properties from current owners to new buyers.	Homeowners, end-users, brokers, resale investors.

In 2025, Dubai’s secondary real estate market has expanded rapidly due to demand from both investors seeking ready-to-move properties and expats preferring established communities with existing infrastructure.

Working with RERA-certified agents is crucial for ensuring that every transaction—whether buying, selling, or leasing—meets Dubai Land Department’s legal and documentation standards.

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2. RERA and DLD Regulations on Agent Commissions (2025 Update)

The Real Estate Regulatory Agency (RERA), operating under the Dubai Land Department (DLD), sets out clear rules for agent commissions and brokerage practices in Dubai’s secondary market.

Key Rules in 2025:

• Only licensed real estate brokers registered with RERA can legally handle property transactions.
• Commission rates are negotiable but must be clearly defined in the Form A (Seller Agreement) and Form B (Buyer Agreement) contracts.
• All commissions are subject to 5% Value Added Tax (VAT) under UAE law.
• Payments must be made through approved escrow channels or via official brokerage firms to ensure traceability.
• Both buyers and sellers must be aware of the commission structure before signing a Sales and Purchase Agreement (SPA).

Tip: You can verify a broker’s RERA license via the official Dubai REST App or DLD website to ensure compliance.

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3. Standard Real Estate Commission Rates in Dubai’s Secondary Market

As of 2025, commission rates in the secondary real estate market remain largely stable, though luxury and commercial sectors often negotiate flexible terms.

Transaction Type	Standard Commission	Who Pays?	VAT Applicable?
Resale of Apartments & Villas	2% of the sale price	Buyer	5% VAT
Exclusive Listings (Seller Only)	1–2% (negotiable)	Seller	5% VAT
Luxury Properties (AED 10M+)	1–1.5%	Buyer or Seller	5% VAT
Rental Transactions	5% of annual rent or AED 5,000 (whichever higher)	Tenant	5% VAT
Commercial Properties	2–5% depending on deal size	Buyer or Tenant	5% VAT

Commission rates must always be stated in the official RERA forms and invoices issued by licensed agencies.

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4. Who Pays the Real Estate Commission in Dubai?

In most secondary market sales, the buyer pays the 2% commission fee to the agent or brokerage firm upon transaction completion.

However, in certain cases:

• Sellers hiring a dedicated agent under an exclusive listing may pay the commission instead.
• Developers pay commissions for primary (off-plan) property sales, meaning buyers in that segment often pay zero commission.
• Tenants typically pay the 5% leasing commission on rental agreements.

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5. Commission Differences by Property Type

A. Residential Properties (Apartments & Villas)

For secondary residential transactions:

• Standard commission: 2% of sale value.
• Luxury villas or penthouses: often negotiated to 1–1.5% for high-value deals.
• Rentals: 5% of annual rent, or one month’s rent for premium properties.

B. Commercial Properties

For commercial real estate—such as retail shops, offices, and warehouses—commission ranges between 2% and 5%, depending on deal complexity and lease duration.

C. Off-Plan Property Resales

While developers pay the agent commission on off-plan properties, secondary resales of off-plan units require the buyer to pay 2% commission to the broker managing the resale.

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6. Negotiating Real Estate Agent Commissions in Dubai

Although RERA sets a standard benchmark, commission rates are negotiable in many situations.
Here are scenarios where investors and sellers can negotiate better terms:

Negotiation Scenario	Potential Discount
High-Value Transactions (AED 10M+)	Commission may drop to 1%
Exclusive Listing Agreements	Lower commission in exchange for agent exclusivity
Repeat Clients / Portfolio Investors	Loyalty-based discounts
Quick Cash Deals	Reduced rates for faster turnaround

Pro Tip: Always ensure that the final agreed commission is recorded in your Form A or Form B contract to avoid disputes.

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7. Hidden Fees in Dubai’s Secondary Property Transactions

In addition to brokerage commission, both buyers and sellers should account for mandatory Dubai Land Department fees and related costs:

Fee Type	Percentage / Amount	Paid By
DLD Transfer Fee	4% of property value	Buyer
Trustee Office Fee	AED 5,000 + VAT	Buyer
Mortgage Registration Fee	0.25% of loan amount + AED 290	Buyer
NOC (Developer) Fee	AED 500 – AED 5,000	Seller
Broker Commission	2% + 5% VAT	Buyer or Seller

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8. Choosing the Right Real Estate Agent in Dubai

When selecting a property agent or brokerage in Dubai’s secondary market, ensure the following:

• They are RERA-certified and have a valid brokerage license.
• Their brokerage is registered under the Dubai Land Department (Trakheesi System).
• They provide transparent, written agreements outlining commission rates and responsibilities.
• They specialize in your target area—such as Downtown Dubai, Palm Jumeirah, or Dubai Marina.
• They use official DLD Forms (A, B, F) for every transaction.

Working with an experienced, licensed agent ensures compliance, security, and smoother property transfers.

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9. Table for Brokers: Commission Benchmarks in 2025

Property Type	Standard Commission	Common Payer	Notes
Apartments & Villas	2% + VAT	Buyer	Negotiable for luxury assets
Rentals	5% annual rent	Tenant	May vary by contract
Commercial Units	2–5%	Buyer / Tenant	Based on complexity
Off-Plan Resales	2%	Buyer	Developer doesn’t pay
Exclusive Seller Listings	1–2%	Seller	Defined in Form A

For Brokers:
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These tools are designed to help you close more deals, increase client retention, and grow your commission pipeline efficiently.

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10. For Investors: Find the Best Properties in Dubai’s Secondary Market

If you are an investor exploring opportunities in Dubai’s thriving resale property sector, visit:
>> GoDubai Property Listings — Access verified resale and off-plan projects from top developers, filtered by ROI potential, community, and budget.

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Conclusion

Understanding agent commissions and brokerage fees in Dubai’s secondary market is crucial for anyone involved in real estate—whether as a buyer, seller, or broker.
While the standard commission remains 2%, it can vary depending on property type, exclusivity agreements, and negotiation terms.

By partnering with RERA-licensed agents and using platforms like GoDubai Portal, both investors and brokers can secure better deals, stay compliant, and optimize profits in 2025’s competitive Dubai real estate market.