A real estate agent in Dubai typically charges 2% of the purchase price on a property sale and 5% of the annual rent on a residential lease, and 5% VAT is added on top of that commission in both cases. Neither figure is fixed by law. The Real Estate Regulatory Agency (RERA) licenses and regulates brokers but does not set a mandatory commission rate, so both percentages are market convention that you are entitled to negotiate before you sign anything.
This guide explains the standard commission rates for renting and buying, why the 2% and 5% figures are custom rather than statute, who pays the fee and the exact moment it becomes legally owed, why only a RERA-licensed broker can collect it at all, and how to negotiate it. It then covers a part of the process most guides ignore: the personal data agents and property portals collect from you, often before you have even seen the unit, and what the UAE Personal Data Protection Law (Federal Decree-Law No. 45 of 2021) lets you push back on.
The Standard Commission Rates in Dubai
The prevailing commission in Dubai is 2% of the sale price for a property purchase and 5% of the annual rent for a residential lease, with 5% VAT charged on the commission amount in each case. On a AED 1.5 million apartment purchase, the buyer’s commission is AED 30,000 plus AED 1,500 VAT. On a AED 90,000 annual lease, the tenant’s commission is AED 4,500 plus AED 225 VAT. These are the figures almost every licensed brokerage quotes as standard.
The table below sets out the convention for the two most common residential transactions. Amounts are current market practice as of mid-2026; where a percentage is custom rather than a fixed government rate, that is the case for every row here, because Dubai does not legislate a commission rate at all.
| Transaction | Standard Commission | VAT | Who Usually Pays |
|---|---|---|---|
| Residential rental (secondary) | 5% of annual rent | 5% on the commission | Tenant |
| Property sale (secondary market) | 2% of purchase price | 5% on the commission | Buyer (sometimes split) |
| Off-plan purchase from developer | Usually 0% to the buyer | Not applicable to buyer | Developer pays the agent |
Rental Commission: 5% of Annual Rent Plus VAT
For a residential lease in the secondary market, the tenant conventionally pays 5% of the annual rent as commission, plus 5% VAT on that amount, once at signing. This is the same commission line covered in our breakdown of first-time tenant fees in Dubai, where it sits alongside the security deposit, Ejari registration, and DEWA charges. The 5% is not written into Dubai’s tenancy law; it is the figure RERA recognizes as customary and the one referenced when a commission dispute reaches the Rental Disputes Center. Because it is customary, it is negotiable, particularly on higher-rent units or in slower letting months.
Sale Commission: 2% of Purchase Price Plus VAT
On a resale or secondary-market purchase, the buyer conventionally pays 2% of the agreed sale price plus 5% VAT. In many deals only the buyer’s agent is paid by the buyer, but the split can vary: some sellers pay their own listing agent separately, and some deals see a single agent representing both sides. The 2% is a fee for the brokerage service, separate from the government transfer costs you owe the Dubai Land Department, which are set out in our guide to DLD fees and property transfer costs. Understanding where the 2% fits in the wider transaction is easier alongside the full Dubai property purchase process.
Off-Plan Purchases: The Developer Usually Pays
When you buy off-plan directly from a developer, the developer typically pays the agent’s commission out of its own marketing budget, so the buyer often pays no separate commission at all. The exception is a secondary sale of an off-plan unit, an assignment or resale before handover, where the buyer may still pay the standard 2%. Always confirm in writing who is paying the agent before you reserve, because a developer-paid agent still owes you honest representation, not just a sale.
Is the Commission Legally Required in Dubai?
No. There is no law in Dubai that sets or mandates a real estate commission rate. RERA regulates who may act as a broker and how they must conduct a transaction, but it does not fix the fee. The 2% and 5% figures are market convention that the industry has settled on, which means the rate in your signed agreement, not a government tariff, is what governs the fee you owe.
This distinction matters in practice. Because the rate is contractual rather than statutory, an agent cannot tell you the fee is “fixed by RERA” or “set by DLD” and refuse to discuss it. What the law does fix is the framework around the fee: the broker must be licensed, the representation must be documented on the correct form, and the commission becomes payable only once that framework is satisfied. A rate presented as non-negotiable law is a claim worth questioning before you sign.
Who Pays the Commission and When It Becomes Owed
Commission is not owed simply because an agent showed you a property or answered your messages. It becomes legally payable only once a signed representation is in place and the transaction the agent was engaged to complete actually goes ahead. In Dubai that representation is documented on a RERA form generated through the Trakheesi permit system, and the form, not a viewing or a phone call, is what establishes the agent’s entitlement to a fee.
The three forms you are most likely to encounter are set out below. Our full guide to RERA forms for buyers and sellers covers each in detail, including Form F, the sale contract itself.
| Form | Signed Between | Purpose |
|---|---|---|
| Form A | Owner and listing broker | Authorizes the broker to list and market the property; needed to generate the Trakheesi permit |
| Form B | Buyer or tenant and their broker | Appoints the broker to represent you and records the agreed commission |
| Form I | Two brokers from different agencies | Agent-to-agent collaboration agreement recording how the commission is split |
The practical takeaway is that the agreed commission belongs on the Form B you sign, in writing, before money changes hands. An agent who wants a fee but never puts a signed representation form in front of you is asking you to pay outside the documented framework, which leaves you with weak recourse if the deal collapses.
Only a RERA-Licensed Broker Can Legally Charge Commission
To lawfully earn commission on a Dubai transaction, an agent must hold an active RERA broker card and work under a brokerage that holds a valid Dubai trade license. An unlicensed individual cannot legally broker a deal or collect a fee, and the listing itself must carry a valid Trakheesi permit number to be advertised at all. You can verify both the agent and the permit before you engage anyone.
Verification takes a minute. Check the agent’s name and broker number against the Dubai Land Department’s licensed brokers records, confirm the listing shows a Trakheesi permit number, and look for the property advertisement’s QR verification through the Dubai REST app. The cost of skipping this step is real: the Dubai Land Department fines brokerages for licensing and advertising violations, and in one enforcement action reported by the DLD, twenty-two brokerage firms were fined a combined AED 900,000 for breaching the rules. Reported penalties for operating without a valid license commonly start at AED 50,000, with RERA able to escalate to license suspension or revocation for serious or repeated violations. What it costs to become a licensed broker is covered in our guide to RERA broker license costs in Dubai.
Before committing, run the same checks used in our property viewing checklist: a real license, a real permit, and a company name you can look up. A WhatsApp number and a set of photos are not proof of either.
How to Negotiate the Agent Commission
Because the rate is convention rather than law, negotiation is legitimate and common, especially on higher-value deals. On a sale, agents representing a motivated seller or a repeat investor will often accept below 2%; portfolio buyers and cash purchasers have the most leverage. On a rental, the 5% is harder to move on a single mid-market unit but softens on premium properties, on longer leases, and in slower months when landlords want the unit filled.
The decision point is what you are trading for the discount. An agent who cuts their fee may also cut the time they spend chasing the landlord’s paperwork, the developer’s no-objection certificate, or the transfer appointment. On a straightforward ready-property deal that trade is usually worth it; on a complex transfer, a mortgaged property, or an off-plan assignment, a slightly higher fee for an agent who actually manages the process can save you weeks. Whatever you agree, get the number onto the signed Form B so there is no dispute later.
Your Data-Privacy Rights When Dealing With Agents and Portals
Long before any commission is owed, most Dubai agents and property portals ask for personal information: your phone number and email to release a viewing, and often a copy of your Emirates ID, passport, visa, and salary or bank details once you express serious interest. Some of this is genuinely needed to draft a tenancy contract or a sale agreement. A good deal of it is collected earlier and more broadly than the transaction requires, and that is where your rights under UAE data protection law come in.
What Agents and Portals Actually Collect
At the enquiry stage, the main UAE property portals capture your contact details and route them to the listing agent as a lead, which is why a single enquiry can trigger calls from several agents. At the viewing and offer stage, agents commonly request identity documents and proof of income or funds. For a tenancy, some agencies also run tenant-screening checks. What a landlord or agent may ask for at that screening stage, and where consent fits in, is covered in our guide to landlord credit checks and tenant screening in Dubai. The recurring problem is timing: handing over your Emirates ID and salary certificate to secure a viewing, before there is any contract or even a firm offer, gives away sensitive data with no transaction to justify it.
What the UAE Personal Data Protection Law Says
The UAE Personal Data Protection Law, Federal Decree-Law No. 45 of 2021, in force since January 2022, sets the baseline. It generally prohibits processing personal data without the individual’s consent, other than in defined cases such as a legal obligation or the performance of a contract, and requires that data be collected for a specific, legitimate purpose and not kept longer than needed. It also gives you rights over your data, including the right to ask for correction, to restrict processing, and to have processing stopped. The law is administered by the UAE Data Office, established under Federal Decree-Law No. 44 of 2021.
One important caveat for 2026: the law’s executive regulations, which are meant to spell out the detailed compliance mechanics and enforcement procedures, had still not been issued at the time of writing, and the Data Office is widely reported to be operating in a transitional capacity. In practice this means the high-level rights and duties exist, but the granular enforcement machinery is not yet fully in place. Treat the principles below as your entitlement in principle, and expect the detailed remedies to firm up as the regulations are released.
How to Limit What You Hand Over
You do not have to surrender a full identity file to view a property. A practical, rights-aware approach is to give only what the current step requires: contact details to arrange a viewing, and identity or income documents only once there is a genuine offer or a draft contract on the table. When you do share documents, ask what they are used for, whether they will be stored, and for how long, and consider watermarking a copy of your Emirates ID with the specific purpose and date. If an agent or portal keeps contacting you after you have asked them to stop, you are entitled to withdraw consent and request that they cease processing your data. Over-collection of personal data is also a common thread in property scams, which is why our guide to verifying a property listing and avoiding scams treats aggressive early data requests as a warning sign.
Commission Red Flags to Watch For
Several practices around commission fall outside the licensed framework: a fee demanded before any signed representation form, commission requested by someone you cannot verify as a licensed broker, a listing with no Trakheesi permit number, and pressure to hand over identity documents or a deposit just to view. Each is a reason to slow down and verify before paying.
The clearest warning sign is a fee requested at the viewing stage, before a landlord has accepted your offer or a sale contract exists. Commission is not owed at that point, and paying it leaves you exposed if the deal never closes. Equally, an agent who will only take cash, refuses a receipt, or asks for a cheque in their own name rather than the brokerage’s is avoiding the paper trail you would need for a complaint. If a dispute does arise over a rental transaction, the routes for redress are the same ones set out in our RERA complaint and Rental Disputes Center process guide, and your broader protections as a renter are covered in our guide to RERA tenant rights in Dubai.
FAQ
How much is real estate agent commission in Dubai?
The standard commission is 2% of the purchase price on a property sale and 5% of the annual rent on a residential lease, with 5% VAT added to the commission in both cases. On a AED 1.5 million purchase that is AED 30,000 plus AED 1,500 VAT; on a AED 90,000 lease it is AED 4,500 plus AED 225 VAT. Both rates are market convention, not fixed by law, so they can be negotiated.
Is the 2% or 5% agent commission set by law in Dubai?
No. Dubai does not legislate a real estate commission rate. RERA licenses and regulates brokers but does not mandate the fee, so the 2% and 5% figures are industry custom. The rate that binds you is the one written into the representation form you sign, which means an agent cannot correctly claim the fee is fixed by RERA and refuse to discuss it.
Who pays the real estate agent commission in Dubai, the buyer or the seller?
On a secondary-market sale the buyer usually pays the 2% commission, though the split can be negotiated and some sellers pay their own listing agent separately. On a rental the tenant conventionally pays the 5%. For off-plan purchases direct from a developer, the developer typically pays the agent, so the buyer often pays no separate commission.
Can I negotiate the agent commission in Dubai?
Yes. Because the rate is convention rather than law, it is open to negotiation, especially on higher-value sales, longer leases, premium units, and in slower months. Portfolio and cash buyers have the most leverage. Whatever rate you agree, get it recorded on the signed Form B so there is no dispute when the fee falls due.
When does the agent commission become legally owed?
Commission becomes payable once a signed representation form is in place and the transaction the agent was engaged for actually proceeds, not at the viewing stage. A fee demanded before any contract or signed form exists sits outside the documented framework and leaves you with little recourse if the deal falls through.
Does the agent have to be RERA-licensed to charge commission?
Yes. Only an agent holding an active RERA broker card, working under a brokerage with a valid Dubai trade license, can lawfully collect commission, and the listing must carry a valid Trakheesi permit. Unlicensed brokerage is a violation; reported penalties commonly start at AED 50,000 and RERA can suspend or revoke a license. Verify the agent and permit before you pay anything.
Can a real estate agent ask for my Emirates ID before a viewing?
An agent can request it, but you are not obliged to hand over identity documents simply to view a property. Under Federal Decree-Law No. 45 of 2021, personal data should be collected only for a specific, legitimate purpose. A practical approach is to share contact details to arrange a viewing and provide identity or income documents only once there is a genuine offer or a draft contract.
What are my data-privacy rights when dealing with property portals?
The UAE Personal Data Protection Law generally requires your consent to process personal data and gives you rights to correct your data, restrict its processing, and have processing stopped. If a portal or agent keeps contacting you after you ask them to stop, you can withdraw consent. Note that the law’s executive regulations were still pending in 2026, so detailed enforcement mechanics are still developing.
Do I pay commission when buying off-plan from a developer?
Usually not. Developers generally pay the agent’s commission out of their own marketing budget on direct off-plan sales, so the buyer pays no separate fee. The exception is a secondary sale or assignment of an off-plan unit before handover, where the standard 2% may apply. Confirm in writing who pays the agent before you reserve.
How do I verify a Dubai real estate agent is licensed?
Check the agent’s name and broker number against the Dubai Land Department’s licensed brokers records, confirm the listing displays a Trakheesi permit number, and use the QR verification on the advertisement through the Dubai REST app. Confirm the brokerage holds a current Dubai trade license, and make sure a signed Form B records the commission before any money changes hands.
Official Sources
This guide references information from the following official and regulatory sources:
- UAE Government Portal – Data Protection Laws (Federal Decree-Law No. 45 of 2021)
- Dubai Land Department – Licensed Real Estate Brokers
- Dubai Land Department – Brokerage Firms Fined for Violating Rules
- Dubai Land Department – Real Estate Violations Complaint Service
- Dubai REST – Property and Broker Verification App
- Rental Disputes Center – Frequently Asked Questions
Information is current as of July 2026. Commission rates are prevailing market convention, not fixed government tariffs, and can vary by deal, broker, and property type. The UAE Personal Data Protection Law is in force, but its executive regulations were still pending at the time of writing, so detailed compliance and enforcement mechanics may change. Verify current requirements and your specific contract terms with the Dubai Land Department, RERA, or a qualified professional before relying on any figure in this guide for a live transaction.
