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2024 Guide: Real Estate Agent Commission Rates in Dubai for Off-Plan and Ready Properties



Dubai's real estate market is renowned for its dynamism and lucrative opportunities, drawing investors and homebuyers from around the globe. Whether you're looking to buy, sell, or rent a property, understanding the commission rates for real estate agents is crucial. This 2024 guide offers a comprehensive overview of the commission structures for both off-plan and ready properties, ensuring you navigate Dubai's real estate market with confidence.


Commission Rates for Off-Plan Properties

Off-plan properties, sold before completion, are popular in Dubai due to attractive payment plans and the potential for price appreciation. Here's what you need to know about the commission rates for off-plan properties in 2024:


  • Developer-Covered Commissions: Typically, developers in Dubai cover the real estate agent's commission for off-plan sales, which can range from 3% to 7% of the property's value. This means buyers often do not bear this cost directly.

  • Varied Rates: The exact commission rate can vary depending on the developer, the project's location, and the property's price point. Some premium developments might offer higher commissions to incentivize agents.


Commission Rates for Ready Properties

Ready properties, also known as secondary market properties, have different commission structures. These properties are fully constructed and ready for immediate occupancy or rental:


  • Sales Commissions: For transactions in the secondary market, real estate agents typically charge a commission of 2% or more. This fee is usually negotiated between the buyer and the agent.

  • Flexibility in Rates: While 2% is a common benchmark, the commission can vary based on the property's value, the agent's experience, and the complexity of the transaction.


Rental Property Commissions

Rental properties in Dubai have distinct commission rates for both tenants and landlords. Here's a breakdown of the current standards:


  • Tenant Commissions: Tenants are generally required to pay a commission equivalent to 5% of the annual rent. This fee covers the agent's services in finding and securing the rental property.

  • Landlord Commissions: For landlords, commission rates can range from 0% to 8%, depending on the services provided by the real estate agent. Full property management services typically command higher fees.


Commercial Property Commissions

Commercial real estate transactions involve higher stakes and often more complex negotiations. As such, commission rates for commercial properties differ from residential ones:


  • Sales Commissions: For commercial property sales, agents charge between 2% to 5% of the property's value. The exact rate depends on the property's size, location, and the transaction's complexity.

  • Rental Commissions: Leasing commercial properties involves higher commissions, ranging from 5% to 10% of the annual lease value. This higher rate reflects the intricate nature of commercial lease agreements and the specialized knowledge required.


Key Takeaways

Navigating Dubai's real estate market requires an understanding of the varying commission rates for different types of properties. Here's a quick summary to keep in mind:


  • Off-Plan Properties: Commissions range from 3% to 7%, typically covered by developers.

  • Ready Properties: Sales commissions start at 2%, with potential for negotiation.

  • Rentals: Tenants pay 5% of the annual rent, while landlords' rates vary from 0% to 8%.

  • Commercial Properties: Sales commissions are 2% to 5%, and rental commissions are 5% to 10%.


By understanding these commission structures, buyers, sellers, and renters can make informed decisions and effectively manage their real estate transactions in Dubai. Whether you're investing in an off-plan project or renting a commercial space, this guide provides the essential insights needed for a successful real estate experience in 2024.


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