Commission Rules for UAE Property Agents: 5 Key Facts Buyers Love 2025

Commercial2 weeks ago

When it comes to buying, selling, or renting property in the United Arab Emirates (UAE), one of the most common questions people ask is about commission fees. These fees are paid to property agents who help close the deal, but the rules around them are not always clear to first-time buyers, tenants, or even some investors.

Understanding commission rules in the UAE real estate market is important because they affect the total cost of any property transaction. Whether you are renting an apartment in Dubai, selling a villa in Abu Dhabi, or investing in a commercial property in Sharjah, knowing how commission works can help you avoid confusion, hidden charges, or disputes.

What Is Commission in Real Estate?

In simple words, commission is the fee that property agents charge for their services. Agents act as the link between buyers, sellers, tenants, and landlords. They handle property listings, market the property, bring clients, arrange viewings, and negotiate prices.

In return for these services, agents are paid a commission once the deal is successfully completed. This commission is usually a percentage of the property’s value or the annual rent, depending on the type of transaction.

Who Regulates Commission in the UAE?

The real estate industry in the UAE is strictly regulated. Each emirate has its own real estate authority:

Dubai: The Dubai Land Department (DLD) and Real Estate Regulatory Authority (RERA) oversee real estate laws.
Abu Dhabi: The Department of Municipalities and Transport (DMT) manages property rules.
Sharjah and other emirates: Local municipality departments handle real estate regulations.

These authorities set guidelines for commission to ensure transparency, prevent overcharging, and protect buyers, sellers, and tenants.

Commission Rules in Dubai

Dubai is the busiest real estate market in the UAE, and its commission rules are clearly defined by RERA.

For Sale Transactions: Property agents are entitled to 2% of the property’s sale value as commission. For example, if you buy a property worth AED 2 million, the agent’s commission will be AED 40,000.
For Rental Transactions: Agents can charge 5% of the annual rent. So, if you rent an apartment for AED 100,000 per year, the commission fee is AED 5,000.

The rules state that this commission is paid once the deal is finalized. In most cases, the buyer or tenant pays the commission directly to the agent.

Commission Rules in Abu Dhabi

In Abu Dhabi, the system is slightly different but follows the same principle of fairness.

For Sales: Agents usually receive up to 2% of the sale price.
For Rentals: Commission is generally 5% of annual rent, with a minimum fixed fee applied in some cases.

It is important to note that in Abu Dhabi, landlords sometimes agree to cover the commission for rentals, but this depends on the negotiation.

Commission in Other Emirates

In Sharjah, Ajman, Ras Al Khaimah, and Fujairah, commission rates are similar to Dubai and Abu Dhabi. The standard rule is:

2% for property sales
5% of annual rent for rentals

However, buyers and tenants are always advised to check the terms in the agreement, as some agents may try to add extra service charges.

Can Commission Be Negotiated?

Many people wonder if commission is fixed or negotiable. In the UAE, commission rates are officially set, but in practice, there can be some flexibility.

For example, if a landlord and agent have a long-term relationship, the agent may agree to a reduced commission. Similarly, in high-value transactions, some agents may lower their fee slightly to secure the deal.

That said, agents cannot charge more than the legal limits. If they do, clients have the right to file a complaint with the real estate authority in their emirate.

Who Pays the Commission?

For Sales: The buyer usually pays the agent’s commission.
For Rentals: The tenant generally pays the commission in Dubai and most other emirates.

In some cases, especially in luxury or premium properties, landlords may offer to cover the commission to make the deal more attractive for tenants.

Why Commission Rules Are Important

Commission rules exist to protect all parties in a property deal. Without clear guidelines, disputes between clients and agents would be common. These rules ensure:

Transparency: Everyone knows the exact fees before signing.
Fairness: Agents are rewarded fairly for their work without overcharging clients.
Trust: Clear rules build confidence in the UAE’s real estate market, especially for international investors.

What to Keep in Mind as a Client

If you are entering the UAE real estate market, here are a few tips:

Always confirm the commission percentage in writing before agreeing to work with an agent.
Check if the agent is licensed with the local real estate authority.
Remember that commission is due only after the deal is completed, not before.
Avoid paying cash; always request a receipt or official invoice.

Disputes and Complaints

If you ever face a dispute regarding commission, you can raise a complaint with the respective authority in your emirate. For example, in Dubai, you can contact RERA through the Dubai Land Department. Authorities usually act quickly to resolve such cases and penalize agents who break the rules.

The Bottom Line

The UAE real estate market is booming, and property agents play a key role in connecting buyers, sellers, tenants, and landlords. While commission fees may seem like an added cost, they are essential for smooth transactions.

By knowing the official commission rules—2% for sales and 5% for rentals—you can protect yourself from unfair charges and make better financial decisions.

Whether you are renting your first home in Dubai, buying an investment property in Abu Dhabi, or selling a villa in Sharjah, understanding commission rules will help you stay confident and informed throughout the process.