Agent Commissions and Fees in Dubai’s Secondary Market

Learn about agent commissions and fees in Dubai’s secondary real estate market, including RERA regulations, buyer and seller costs, and industry best practices.

Article Overview

Introduction

1. What is Dubai’s Secondary Real Estate Market?

2. RERA Regulations on Agent Commissions in Dubai

3. How Much Commission Do Real Estate Agents Charge in Dubai’s Secondary Market?

Who Pays the Agent Commission?

4. Commission Fees for Different Property Types

A. Apartments for Rent in Dubai & Villas for Sale in Dubai

B. Commercial Properties in Dubai

C. Off-Plan Properties in Dubai (No Buyer Commission)

5. How to Negotiate Real Estate Agent Commissions in Dubai

6. Hidden Costs in Secondary Market Transactions

7. Choosing the Right Real Estate Agent in Dubai

8. Finding Verified Agents and Property Listings on GoDubai Portal

Conclusion

Introduction

Dubai’s secondary real estate market is a thriving sector, attracting investors, homebuyers, and real estate agents seeking lucrative deals. Whether you’re purchasing a luxury villa, an apartment in Dubai Marina, or a commercial property, understanding agent commissions and fees is essential for a transparent and smooth transaction.

In this comprehensive guide, we will explore:

• How much commission real estate agents charge in Dubai’s secondary market.
  
  

• RERA regulations governing agent commissions.
  
  

• Buyer and seller responsibilities for commission payments.
  
  

• Factors influencing commission rates.
  
  

By the end, you’ll have a clear understanding of how agent commissions and fees impact the Dubai Real Estate Market and how to navigate transactions efficiently.

1. What is Dubai’s Secondary Real Estate Market?

Dubai’s real estate sector is divided into two markets:

✔ Primary Market (Off-Plan Properties in Dubai) – Direct purchases from developers.
✔ Secondary Market – Resale of ready properties from current owners to new buyers.

🔗 Learn more about Off-Plan Properties in Dubai

The secondary market involves transactions of pre-owned properties, making it essential for buyers and sellers to work with licensed real estate agents who facilitate deals, verify ownership, and ensure RERA compliance.

2. RERA Regulations on Agent Commissions in Dubai

The Real Estate Regulatory Agency (RERA), a division of the Dubai Land Department (DLD), oversees real estate transactions, including agent commissions and brokerage fees.

✔ RERA Mandates that All Real Estate Agents Must Be Licensed.
✔ Commission fees are negotiable but follow standard market practices.
✔ Agent commissions should be clearly stated in the contract.
✔ Both buyers and sellers are responsible for paying brokerage fees.

🔗 Check RERA regulations on real estate transactions

3. How Much Commission Do Real Estate Agents Charge in Dubai’s Secondary Market?

In Dubai’s secondary property market, the standard real estate commission fee is:

✔ 2% of the property sale price (excluding VAT), paid by the buyer.
✔ Sellers may also be charged additional brokerage fees if they hire an exclusive agent.
✔ 5% VAT applies to the commission amount, as per UAE tax regulations.

🔗 Read about UAE Real Estate Taxes and Fees

Who Pays the Agent Commission?

✔ Buyers typically pay the 2% commission upon purchasing Properties for Sale in Dubai.
✔ Sellers may pay a brokerage fee if they hire a dedicated agent to market their property.

4. Commission Fees for Different Property Types

A. Apartments for Rent in Dubai & Villas for Sale in Dubai

• For rental properties, agents charge 5% of the annual rent or a fixed fee.
  
  

• For high-end villas, commission rates may be negotiated up to 3% due to premium pricing.
  
  

🔗 Explore Villas for Sale in Dubai

B. Commercial Properties in Dubai

• Commission fees for commercial real estate vary from 2% to 5%, depending on the size and location.
  
  

• High-value commercial deals may involve custom brokerage agreements.
  
  

🔗 Find Commercial Properties in Dubai

C. Off-Plan Properties in Dubai (No Buyer Commission)

• Developers pay the commission for off-plan property sales, meaning buyers don’t pay agent fees.
  
  

• However, secondary market off-plan resales require the buyer to pay 2% commission.
  
  

🔗 Off-Plan Properties in Dubai

5. How to Negotiate Real Estate Agent Commissions in Dubai

While agent commissions are standardized, there is room for negotiation in the secondary market.

✔ High-Value Transactions – Properties worth AED 10M+ may qualify for lower commissions.
✔ Exclusive Listings – Sellers who provide exclusivity to an agent may negotiate lower rates.
✔ Repeat Clients – Buyers or investors making multiple purchases may receive discounted commissions.

🔗 Check Best Areas to Invest in Dubai Real Estate

6. Hidden Costs in Secondary Market Transactions

Apart from agent commissions, buyers and sellers should account for additional fees in Dubai property transactions:

✔ Dubai Land Department (DLD) Transfer Fee – 4% of property value.
✔ Trustee Office Fee – Approx. AED 5,000 + VAT.
✔ Mortgage Registration Fee – 0.25% of loan amount + AED 290.

🔗 Dubai Property Transaction Fees Explained

7. Choosing the Right Real Estate Agent in Dubai

When selecting a real estate agent in Dubai, ensure they are:
✔ RERA-Certified – Verify their brokerage license.
✔ Experienced in Your Preferred Area – Choose agents specializing in areas like Dubai Marina or Downtown Dubai.
✔ Transparent About Fees – Request a written agreement on commission structure.

🔗 How to Buy Property in Dubai as an Expat

8. Finding Verified Agents and Property Listings on GoDubai Portal

To simplify your property search, GoDubai Portal offers:
✔ Access to RERA-certified agents for buying and selling.
✔ A complete database of off-plan and secondary market properties.
✔ Market insights, legal documentation, and transaction tracking.

🔗 Subscribe to GoDubai Portal for premium real estate services.

Conclusion

Understanding agent commissions and fees in Dubai’s secondary market is essential for buyers and sellers to make informed decisions. While the standard commission is 2%, factors such as property type, transaction value, and exclusivity agreements can affect the final cost.

By working with trusted, RERA-certified agents and using platforms like GoDubai Portal, investors can secure the best deals in the Dubai Real Estate Market while minimizing hidden costs.

Would you like assistance in finding Properties for Sale in Dubai with trusted agents? Start your search today!