Introduction: Why Real Estate Agency Fees Matter in Dubai

Dubai’s property market is one of the most dynamic in the world, attracting investors, expats, and first-time buyers alike. However, beyond property prices, one of the most important aspects of buying, selling, or renting in Dubai is understanding real estate agency fees. These fees—also known as real estate commission—are regulated by the Dubai Land Department (DLD) through its governing body, the Real Estate Regulatory Agency (RERA).

In 2025, RERA continues to enforce strict guidelines to ensure transparency, fair practices, and consumer protection in all property transactions. Whether you are an investor looking for properties in Dubai, a tenant seeking the best rentals, or a broker navigating client relationships, knowing the exact costs and rules surrounding agency fees can save you money and prevent disputes.

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1. What Are Real Estate Agency Fees in Dubai?

Real estate agency fees in Dubai are commissions paid to licensed real estate brokers for facilitating property transactions. These include sales, purchases, rentals, and even off-plan property deals.

• Governed by Law No. 85 of 2006 and updated regulations in 2025.
• Only RERA-registered brokers are authorized to charge these commissions.
• All commissions must be clearly stated in the Form A, Form B, and Form F contracts (mandatory DLD-approved agreements).

Agency fees apply across the buying, selling, and renting spectrum, ensuring brokers are compensated fairly while clients are protected from hidden charges.

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2. Real Estate Commission Fees for Buying & Selling in Dubai

When buying or selling property in Dubai, the standard real estate agency commission is:

• 2% of the property purchase price (paid by the buyer in most cases).
• Additional costs:
  • 4% DLD transfer fee.
  • AED 5,250 title deed issuance/registration fee.
  • Mortgage registration fee if applicable.

Example: If you buy a property worth AED 2,000,000:

• Commission: AED 40,000 (2%).
• DLD Fee: AED 80,000 (4%).
• Title Deed: AED 5,250.
• Total Fees (excluding mortgage): AED 125,250.

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3. Real Estate Agency Fees for Renting in Dubai

For tenants, the agency commission fee is different from buyers and sellers.

• 5% of the annual rent (fixed for long-term leases).
• 10–15% for short-term rentals, since brokers manage holiday homes, furnished apartments, and tenancy turnovers.
• Fees must be mentioned clearly in the Ejari tenancy contract.

Example: If your rent is AED 100,000 annually, your agency fee = AED 5,000.

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4. Who Pays the Real Estate Commission in Dubai?

• Sales Transactions – The buyer typically pays the 2% commission. In rare cases, buyer and seller split the fee.
• Rental Transactions – The tenant pays the 5% fee at the time of signing.
• Off-Plan Properties – Developers usually pay the broker directly, meaning buyers often pay no commission.

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5. Additional Real Estate Service Fees in Dubai

Apart from standard commissions, some optional or case-specific charges may apply:

Service	Typical Fee (2025)	Notes
Property Valuation	AED 2,500 – AED 4,000	Required for mortgages
Ejari Registration	AED 220	Mandatory for rental contracts
Mortgage Registration	0.25% of loan value	Paid to DLD
Oqood Registration (Off-Plan)	AED 5,250	One-time fee
NOC (No Objection Certificate)	AED 500 – AED 5,000	Paid to developer when selling

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6. Can Real Estate Agency Fees Be Negotiated in Dubai?

• Sales Deals – Yes, commissions can sometimes be reduced below 2%, especially for luxury properties or bulk deals.
• Rentals – Generally fixed at 5% and non-negotiable.
• Exclusive Listings – Some agencies may offer reduced commissions if the client commits exclusively.

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7. How to Avoid Overpaying Real Estate Fees in Dubai

• Always hire a RERA-approved broker (check via the DLD’s Dubai REST App).
• Insist on a written commission agreement before signing.
• Beware of fake listings that inflate prices or add hidden charges.
• Compare commission rates across agencies before committing.

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8. Why Understanding Agency Fees Matters for Investors

For real estate investors in Dubai, knowing the commission structure ensures better ROI calculations. Since fees impact net profit, investors need to factor in:

• Upfront purchase costs (commissions + DLD fees).
• Long-term returns from rental yield.
• Resale value minus future commissions.

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9. Opportunities for Brokers: How to Maximize Commission in 2025

Dubai’s real estate brokerage market is competitive, but tools like exclusive lead generation can give brokers the edge.

Broker Opportunity	Strategy	GoDubai Solution
Attract More Buyers	Market verified listings & projects	Guaranteed Real Estate Leads
Revive Old Clients	Reconnect with inactive buyers/renters	Cold Lead Revival Service
Close Bigger Deals	Target luxury and off-plan investors	Access off-plan listings & VIP buyers
Build Reputation	Stay compliant with RERA & DLD	Verified broker exposure via GoDubai

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10. FAQs About Real Estate Agency Fees in Dubai

Q1. Is VAT charged on agency fees in Dubai?
Yes, a 5% VAT is applied to brokerage commissions.

Q2. Can I refuse to pay the commission if I close a deal privately?
If you signed a broker agreement, commission is legally enforceable.

Q3. Do developers charge agency commission on off-plan sales?
No, in most cases developers cover broker fees for off-plan property sales.

Q4. Are real estate commissions refundable in Dubai?
No, once the deal is complete, commissions are non-refundable.

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Conclusion: Navigating Agency Fees in Dubai Real Estate 2025

Understanding real estate agency fees in Dubai is essential for anyone engaging in the market—whether buying, selling, or renting. With RERA regulations keeping transactions transparent and secure, commissions are fair and standardized.

• For investors, knowing the fee structure ensures accurate ROI forecasts.
• For tenants, it helps plan upfront rental costs.
• For brokers, mastering fee compliance builds credibility and long-term success.

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Dubai’s property market continues to thrive, and with the right knowledge, you can maximize your investments while avoiding unnecessary costs.