Real Estate Commission in Dubai:
The Complete 2026 Guide
Buyers pay 0.2% at Direct Deal UAE (vs 2% traditional). Tenants pay 0.5% (vs 5%). Sellers and landlords always pay zero. Developer and off-plan properties carry zero buyer commission.
Dubai Real Estate Commission: All Transaction Types
| Transaction Type | Who Pays | Direct Deal UAE | Traditional Broker | Your Saving |
|---|---|---|---|---|
| Resale Property — Ready or Off-Plan (Buy) | Buyer | 0.2% | 2% | 90% |
| Developer / Off-Plan Property (Buy) | Developer pays DDU | 0% for buyer | 2% | 100% |
| Rental (Tenant) | Tenant | 0.5% | 5% | 90% |
| Sell Property (Seller) | Nobody | FREE | 2% | 100% |
| List Rental (Landlord) | Nobody | FREE | 5% | 100% |
Direct Deal UAE is RERA-licensed (ORN 43954). All rates are legally documented in writing per RERA requirements.
Buyer Commission in Dubai: 0.2% vs 2%
When buying a resale or ready property in Dubai, the buyer pays the real estate agent's commission. At Direct Deal UAE, this is 0.2% of the purchase price — compared to the market standard of 2% charged by traditional brokers. This is the same RERA-licensed service, same agent support, same paperwork — at one-tenth the cost.
Important: On developer and off-plan properties listed directly on Direct Deal UAE, buyers pay 0% commission. The developer pays Direct Deal UAE directly. You still receive full RERA-licensed agent support at zero cost.
Tenant Commission in Dubai: 0.5% vs 5%
When renting a property in Dubai, the tenant pays the agent's commission. At Direct Deal UAE, tenants pay 0.5% of annual rent — compared to the standard 5% charged by most Dubai brokers. Landlords pay zero commission on Direct Deal UAE.
Total Cost of Buying Property in Dubai (2026)
Beyond the agency commission, buyers in Dubai pay mandatory government fees. Here is the complete cost breakdown for a AED 1,000,000 property purchase:
| Fee | Rate | With Direct Deal UAE | With Traditional 2% Broker |
|---|---|---|---|
| DLD Transfer Fee | 4% (mandatory) | AED 40,000 | AED 40,000 |
| DLD Admin Fee | Fixed | AED 580 | AED 580 |
| Agency Commission | Varies | AED 2,000 (0.2%) | AED 20,000 (2%) |
| TOTAL | AED 42,580 | AED 60,580 |
*Mortgage registration (0.25%) added separately if applicable. DLD admin fee varies AED 580-4,000 by property value.
Who Pays the Real Estate Commission in Dubai?
In Dubai's secondary (resale) market, the buyer customarily pays the agent's commission — the market convention is 2%, while Direct Deal UAE charges 0.2%. In rentals, the tenant pays — conventionally 5% of annual rent, 0.5% at Direct Deal UAE. When buying directly from a developer (ready or off-plan), the developer pays the brokerage and the buyer pays 0%.
Sellers and landlords never pay commission at Direct Deal UAE. Some traditional agencies charge both sides of the same transaction — always confirm in writing (Form A for sellers, Form B for buyers) exactly who pays what before signing anything.
Is It Legal to Buy Property in Dubai Without an Agent?
Yes — completely legal. No UAE law requires you to use a real estate agent. A buyer and seller can transact directly through the Dubai Land Department and a registration trustee office. We believe in telling you this honestly, because an informed buyer makes better decisions.
What you give up without a licensed broker is protection: verification that the listing is real and the seller actually owns the property, correct drafting of the Form F (MOU) contract, handling of the developer NOC, secure payment structuring through manager's cheques, and the DLD transfer process itself. Most property fraud in Dubai happens in exactly these gaps — fake listings, impersonated owners, and mishandled deposits.
At a traditional 2% fee, skipping the agent is tempting. At 0.2% — AED 2,000 on a AED 1,000,000 purchase — full RERA-licensed protection costs less than a single furniture delivery. That is the gap Direct Deal UAE exists to close: professional protection at a price where going unprotected stops making sense.
Is VAT Charged on Real Estate Commission in Dubai?
Yes. Brokerage commission is a service, so the UAE's 5% VAT applies to the commission amount — not the property price. On a AED 1,000,000 resale with Direct Deal UAE: AED 2,000 commission + AED 100 VAT = AED 2,100 total. With a traditional 2% broker: AED 20,000 + AED 1,000 VAT = AED 21,000 total. The lower the commission, the lower the VAT on top of it.
The 4% DLD transfer fee is a government charge and is not subject to VAT.
Frequently Asked Questions — Dubai Real Estate Commission
How much commission do buyers pay when buying property in Dubai in 2026?
Buyers pay 0.2% commission at Direct Deal UAE on resale and ready properties — compared to the standard 2% charged by traditional brokers. On a AED 1,000,000 property that is AED 2,000 vs AED 20,000, a saving of 90%. On developer and off-plan properties, buyers pay zero commission — the developer pays Direct Deal UAE directly.
What commission do tenants pay when renting property in Dubai?
Tenants pay 0.5% of annual rent as commission at Direct Deal UAE — compared to the standard 5% charged by traditional brokers. On AED 100,000/year rent that is AED 500 vs AED 5,000, a 90% saving. Landlords pay zero commission on Direct Deal UAE.
Do sellers pay commission when selling property in Dubai?
No. Sellers and landlords pay zero commission at Direct Deal UAE. Listing a property for sale or rent is completely free. Direct Deal UAE earns only from the buyer's 0.2% on resale properties, or the tenant's 0.5% on rentals. On developer properties the developer pays the agency directly.
What is zero commission property in Dubai?
Zero commission properties are developer listings — both ready and off-plan — where the buyer pays 0% brokerage fee. The developer pays the agency (Direct Deal UAE) directly, so the buyer pays nothing in commission beyond the property price and the standard 4% DLD transfer fee.
What is the DLD transfer fee when buying property in Dubai?
The Dubai Land Department (DLD) charges a mandatory 4% transfer fee on the property purchase price, paid by the buyer. This is a government fee separate from agency commission. On a AED 1,000,000 property the DLD fee is AED 40,000. At Direct Deal UAE you pay only 0.2% in agency fees (AED 2,000) on top of this — the lowest legal brokerage in Dubai.
What is the total cost of buying property in Dubai?
Total buying costs in Dubai include: 4% DLD transfer fee, DLD admin fee (AED 580-4,000), agency commission (0.2% at Direct Deal UAE vs 2% elsewhere), and 0.25% mortgage registration if applicable. On a AED 1,000,000 property with Direct Deal UAE: approximately AED 42,580 total. With a traditional 2% broker: approximately AED 60,580 — AED 18,000 more.
What is the difference between buyer commission and DLD fee in Dubai?
The DLD fee is a mandatory 4% government transfer tax — the same regardless of which broker you use. The agency commission is a separate brokerage fee paid to the agent — this varies by agency. Traditional brokers charge 2%; Direct Deal UAE charges only 0.2% on resale properties and 0% on developer listings.
Do landlords pay commission when listing a rental property in Dubai?
No. Landlords list rental properties completely free on Direct Deal UAE. There is no listing fee and no landlord commission ever. The tenant pays 0.5% of annual rent, which is how Direct Deal UAE earns on rental transactions. Traditional agents often charge landlords 5% as well.
How does Direct Deal UAE compare to traditional brokers in Dubai?
Traditional Dubai brokers charge: 2% from buyers, 5% from tenants, and often 2-5% from sellers or landlords. Direct Deal UAE charges: 0.2% from buyers on resale (90% less), 0.5% from tenants (90% less), and zero from sellers and landlords. On developer properties buyers pay 0%. All transactions are RERA-licensed (ORN 43954) with full agent support.
Who pays the real estate commission in Dubai — the buyer or the seller?
In Dubai's resale market the buyer customarily pays the commission (2% market convention; 0.2% at Direct Deal UAE). In rentals the tenant pays (5% convention; 0.5% at Direct Deal UAE). When buying directly from a developer, the developer pays the brokerage and the buyer pays 0%. Sellers and landlords pay zero at Direct Deal UAE.
Is it legal to buy property in Dubai without a real estate agent?
Yes — no UAE law requires using an agent, and direct owner-to-buyer transactions are legal through the Dubai Land Department. The trade-off is risk: listing and ownership verification, Form F (MOU) drafting, developer NOC, secure payment handling and the DLD transfer are where most property fraud occurs. A RERA-licensed broker at 0.2% provides that protection for AED 2,000 on a AED 1,000,000 purchase.
Is VAT charged on real estate commission in Dubai?
Yes. The UAE's 5% VAT applies to brokerage commission as a service, calculated on the commission amount — not the property price. On a AED 1,000,000 resale: AED 2,000 commission + AED 100 VAT at Direct Deal UAE, versus AED 20,000 + AED 1,000 VAT with a traditional 2% broker. The 4% DLD transfer fee is not subject to VAT.
What commission do buyers pay on an off-plan resale property in Dubai?
Off-plan resale means buying an under-construction unit from its current owner rather than the developer. The buyer pays 0.2% commission at Direct Deal UAE — the same rate as ready resale, versus the 2% market convention. Note the developer may charge its own NOC/transfer administration fee on off-plan resales, which applies regardless of which brokerage you use.
Does a lower commission mean less service or higher risk?
No. The commission rate does not change the legal process — the same RERA forms (Form A, Form B, Form F), the same DLD transfer and the same licensed accountability apply at 0.2% as at 2%. Direct Deal UAE keeps fees low through a technology-led, low-overhead model, not by cutting service: every listing is verified, and viewing, negotiation and transfer support are included.
Is the real estate commission in Dubai fixed by law?
No. RERA does not fix a mandatory commission rate in Dubai — it only requires commission agreements are documented via Form A and Form B. The 2% buyer and 5% tenant rates are market conventions, not legal requirements. Agencies can legally charge any agreed rate. Direct Deal UAE legally charges 0.2% for buyers and 0.5% for tenants — the lowest published rates of any RERA-licensed agency in Dubai.
Written by Sharib Ilahi — Founder, Direct Deal UAE | RERA-Certified Agent | Engineer & Property Investor | 12+ years experience | Last updated: June 2026
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