Navigating property transactions can be complex in Dubai’s bustling real estate market. It requires expertise and guidance to ensure a smooth and successful outcome. In such circumstances, people turn to real estate agents or brokers for professional advice. However, this advice comes with a price tag.
Understanding how much it costs to hire a real estate agent in Dubai is crucial for everyone who wants to do a property transaction in the city. We have broken down the fee structure for real estate agents in Dubai, the commissions and additional charges for a detailed overview.
How Much Does It Cost to Hire a Real Estate Agent in Dubai?
The cost of hiring a real estate agent in Dubai varies depending on whether you’re buying or renting a property. Although there are many benefits to hiring a real estate agent, a hefty fee might not be an enticing point for some. Moreover, real estate commissions in Dubai vary with the property value once the tenant or the buyers get their keys.
Each transaction may have different charges based on the contract agreement with the agent. The Real Estate Regulation Agency (RERA) hasn’t imposed any fixed real estate agent fee. However, the agent’s contract with the buyer or tenant must be registered with the Dubai Land Department (DLD). If a client is working with more than one real estate agent, they must register the contract of each agent with DLD and pay them accordingly.
Let’s review the cost to hire a real estate agent in Dubai for different cases.
RENTING A PROPERTY
When renting a property in Dubai, tenants pay the real estate agent’s commission fee. Similarly, it is the landlord’s responsibility to cover the cost of the real estate broker’s services if they have hired one. This fee differs for residential and commercial properties. Case in point, the cost of hiring a real estate agent to find a rental in Dubai is given as follows:
FOR RESIDENTIAL PROPERTIES
- When renting a house in Dubai, the tenant will have to pay 2% to 5% of the annual rent. For instance, if the annual rent is AED 100,000, the tenant pays a commission fee ranging from 2% to 5%, which amounts to AED 2,000 to AED 5,000, respectively.
- If the total annual rent is less than AED 5,000, then the cost to hire a real estate agent will be a straightforward AED 5,000.
- If you’re the landlord renting out property, you might not have to pay anything to the agent, or you could pay up to 8% of the annual rent. The exact amount depends on the services you agree on with the agent, such as marketing and property management they’ll handle.
FOR COMMERCIAL PROPERTIES
- If you’re renting a commercial space in Dubai, you also pay a fee to the real estate agent. This fee ranges from 5% to 10% of the annual rent, depending on what the agent has been asked to do.
- If you’re the landlord renting out a commercial property, you could pay up to 8% of the annual rent depending on the agent’s agreement.
BUYING OR SELLING A PROPERTY
If you buy a property in Dubai via a real estate agent, it comes with certain costs. The cost of hiring a real estate agent in Dubai goes up to 2% of the final sale price or the value determined in the contract. Besides the realtor’s commission when buying a property, a 5% VAT is also employed.
Another cost that a buyer must keep in mind is the conveyance fees for legal property transfer in the UAE. Its amount depends on certain factors like property value, type of transaction and the services involved. The fee usually ranges from AED 5,000 to AED 10,000.
SELLING AN OFF-PLAN PROPERTY
When selling an off-plan property in Dubai, the commission fee for the real estate agent is paid by the developer or seller. This means that as a seller, you are responsible for covering the commission fee for the real estate agent you engage to help sell your off-plan property. The commission fee for off-plan properties is negotiated between the developer/seller and the real estate agent before the sale process starts.
FAQs
How much do I have to pay an agent to buy a home in Dubai?
The estimated fee for hiring a real estate agent in Dubai when buying a property is 2% of the final purchase price plus 5% VAT.
How much is a conveyance fee in Dubai?
The conveyance fee varies from AED 6,000 to AED 10,000 depending on the transaction type and property in Dubai.
Do I have to pay a real estate agent if I am a buyer in Dubai?
In Dubai, a buyer usually pays the fee of a real estate agent. However, the seller pays their share as mentioned in the agreement.
This wraps our overview of how much it costs to hire a real estate agent in Dubai. The charges vary depending on the property type and services involved. If you are interested in buying an apartment in Dubai, you can opt for DLD-licenced real estate brokers to assist you in the matter. You can also hire a real estate virtual assistant to streamline multiple tasks.
Also, don’t forget to navigate the hidden costs of buying a property in Dubai such as mortgage and insurance charges.
For real estate advice, property trends and news in the UAE, keep reading dubizzle’s real estate blog.
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