How Much Commission Do Real Estate Agents Charge in Dubai?

What Is the Standard Commission Structure in Dubai?

In Dubai’s secondary market, the most common commission structure is 2 percent of the purchase price from the buyer and 2 percent from the seller, each paid to their own agent. For rentals, tenants typically pay 5 percent of the annual rent, while landlords may pay up to 8 percent if they outsource full marketing and management.

These percentages apply to both residential and commercial deals, but commercial commissions can go higher because of larger transaction values and more complex mandates. Importantly, RERA has not set a single fixed rate per transaction type, so rates are based on market practice and individual agreements.

How Much Commission Do Buyers Pay on Property Purchases?

For ready, secondary-market homes in Dubai, buyers usually pay their broker a commission of 2 percent of the agreed purchase price at transfer. On a 1.5 million AED property, that means a typical buyer commission of 30,000 AED, and on 3 million AED, about 60,000 AED.

Off-plan buyers are in a different position, because developers usually pay the commission to the agent; buyers are not asked to pay a brokerage fee on top of the property price. Platforms like Proffer go further by sharing part of this developer-paid commission back to the buyer as cashback, which reduces their effective cost even more and explains how brokerage fee is applied on every transaction and who needs to pay it.

How Much Commission Do Sellers Pay on Property Sales?

In a traditional arrangement, sellers in Dubai pay a 2 percent commission on the final sale price to the agent who lists, markets and closes their property. This applies to both residential and commercial resale and can reach hundreds of thousands of dirhams on high-value homes or office assets.

Proffer changes this for sellers: according to the platform, sellers can list their property for free and complete transactions without paying any seller commission at all, keeping the full sale price while only paying mandatory DLD and trustee fees. For owners who still want support with paperwork and transfer, Proffer offers fixed-fee structured services instead of a percentage-based agent commission.

What Is the Commission on Residential Rentals?

For residential rentals, the usual convention in Dubai is that the tenant pays an agency fee of around 5 percent of the annual rent, often with a minimum flat amount on lower-value leases. This fee is typically paid upon signing the tenancy contract or Ejari related paperwork.

Landlords may or may not pay an additional brokerage or management fee; in many standard residential leases the landlord pays 0 percent if they only use an agent for tenant sourcing, but can pay up to 8 percent per year if they engage full management services. Since these rates are not fixed by law, some agencies charge more and tenants are free to refuse and negotiate.

What Is the Commission on Commercial Rentals and Sales?

Commercial property deals often involve higher commission brackets than residential, especially for complex leases or investment sales. For commercial sales, common commission ranges are between 2 and 5 percent of the purchase price, agreed case by case between owner and agency.

For commercial rentals, the tenant typically pays between 5 and 10 percent of the annual rent as commission, while landlords can pay 0 to 8 percent depending on marketing and property management scope. Because these deals are larger and more bespoke, commission structures are usually documented clearly in the agency agreement and are more negotiable than many private residential rentals.

When is commission paid on a property sale?

• Ready property – buyer’s commission,
  For secondary (ready) sales, the buyer’s 2% commission is typically paid on the day of transfer at the DLD trustee office, as part of the buyer’s closing costs.
  Payment is usually by manager’s cheque or bank transfer, after all party’s sign Form F / SPA and before the new title deed is issued.
• Ready property – seller’s commission,
  When a seller engages an agent to market the property, the seller’s 2% commission is paid once the transfer is successfully completed.
  In practice, this is settled on or immediately after transfer, once the buyer’s funds have been received and the title changes at DLD.
• Off‑plan property,
  For off‑plan, buyers usually pay no commission; the developer pays the broker after the Sales and Purchase Agreement (SPA) is executed and payment milestones are met.
  Platforms like Proffer share part of this developer‑paid commission back with the buyer as cashback once the purchase is finalized.
  
  

When is commission paid on a rental?

• Residential and commercial rentals, tenant commission:
  In most Dubai leases, the tenant pays a commission of around 5% and 10% of the annual rent (or a minimum flat amount).
  This is normally paid once, at the time of signing the tenancy contract and issuing rental cheques, often together with Ejari registration.
• Landlord / owner commission on rentals:
  If the landlord has a separate agreement (for marketing or full property management), their fee is generally paid after the lease is signed and the tenant’s cheques are handed over, and is calculated as a percentage of annual rent.
  
  

How Do Platforms Like Proffer Change Commission?

Proffer positions itself as a digital platform that replaces traditional commission structures with lower or zero fees for buyers and sellers. On ready homes, Proffer states that buyers pay only 1 percent commission, while sellers can complete their sales without any seller-side commission at all.

For off-plan property, developers already pay brokers, and Proffer turns part of that commission into cashback that is paid back to the buyer after the sale, which means a direct financial gain compared to using a traditional agent. For sellers who want additional transaction support without a traditional agent on either side, Proffer offers fixed-fee services so owners know their total costs up-front rather than paying a percentage.


Key Commission Ranges at a Glance

These ranges follow the typical Dubai market structure plus Proffer’s 1% buyer and zero seller-commission model.