Real Estate Commission in Dubai: Leasing, Secondary and Off Plan Rates

How much can you actually charge

One of the first things a new agent needs to master is the money. Fumbling the commission conversation instantly undermines your credibility. Here is the clear breakdown of what you are entitled to charge in Dubai.

Leasing

The standard commission on a one year lease is 5% of the annual rent, or a minimum fee of AED 5,000 plus VAT. For multi year deals, you charge 5% of the total contract value. The minimum fee typically applies on properties renting at around AED 100,000 or below.

Secondary sales

These are completed properties sold on from an existing owner rather than the developer. The standard commission is 2% from the buyer and 2% from the seller. Additional marketing fees can also be agreed.

Off plan sales

These are properties bought directly from the developer before completion. Here the developer pays the commission, usually between 3% and 7%, and in some cases up to 10%. The buyer typically pays nothing, which makes it an attractive route for investors.

A note on the cheque system

Rent in Dubai is usually paid in one to four cheques across the year. One cheque means the full year upfront, which favours the landlord. Four cheques, paid quarterly, is the most common ask from tenants. The number of cheques is a real negotiation tool.

The most important rule

These figures are your worth, not your opening offer. Quote them with confidence and never apologise for your fee. Discounting to win a client only teaches them you were overpriced to begin with.

Knowing your numbers cold is what makes you the expert in the room. It is one of the core modules inside Introduction to Real Estate, our foundation course for Dubai agents.

Ashley J Hawthorne is the founder of Your Real Estate COO and Managing Director of a Dubai brokerage, with 23 years in real estate across the UK and Dubai and nine industry awards. More about Ashley.