A Complete Guide On Real Estate Broker Fees In Dubai

A real estate broker helps people buy and sell real estate in Dubai. This process requires a comprehensive market understanding, knowledge of rules and regulations and know-how about a prime location, investment opportunities and potential risks. Given his expertise, a broker makes this property buying and selling process seamless for you by facilitating property transactions based on your specific needs and preferences, It means he provides tailor-made investment solutions.

The services of real estate experts of brokers are not for free. Buyers and sellers of a property have to pay based on the terms of the contract. This is a worth considering investment because an expert can bring the most suitable real estate investment opportunities based on your specific requirements and preferences. 

No matter whether you are a local, expat or foreign national or aim to buy commercial or residential real estate in Dubai, you are suggested to seek expert guidance and hire a broker to meet your real estate investment objectives. Before hiring an agent, give it a read to know about real estate brokers’ fees in Dubai.

Let’s Find Out How Much It Costs To Hire A Broker In Dubai!

Getting the services of a field expert has several advantages. It has multifaceted benefits to hire a real estate broker because he will assist you in finding the best investment option and making a profitable choice, given his real estate knowledge, market understanding and communication skills. 

When it comes to the cost of getting the services of a broker in Dubai, it is not the same in every transaction. There is no set fee such as a real estate agent’s commission. It varies from transaction to transaction because It depends on the terms of the agent’s contract. However, the contract must be filled with the Dubai Land Department (DLD) to ensure transparency and avoid any hassle. In short, you are supposed to pay an agent based on the contract or agreement which is also registered with the DLD.

Brokers’ Commission For Selling Real Estate In Dubai

A real estate agent normally gets 2% of the total selling value of a particular property at the closing of the agreement. Furthermore, a 5% VAT is also involved in this commission. It means there is not a fixed commission. A broker or real estate agency gets a decided or agreed upon percentage when the deal is closed or when the buyer receives the document of the property.

Off-plan properties for sale in Dubai are also deemed attractive investment considerations. Many of the local and foreign investors consider buying under-construction properties to capitalize on attractive payment plans. Furthermore, the value of under-construction properties also increased upon their completion.

Real estate agents also assist developers and sellers to dispose off their off-plan properties in Dubai. In this scenario, they do not charge buyers but they obtain their commission from developers or sellers of properties. They can decide the percentage before selling a property and then receive their share when the property is sold.

Brokers’ Commission For Renting Real Estate In Dubai

A lot of people also seek residential and commercial properties for rent in Dubai. In this case, tenants are liable to pay the commission of brokers. In both cases, the percentage of commission is different.

Charges For Residential Rental Properties

Normally, a tenant has to pay the agent’s commission fee in Dubai. However, if a landlord hires a professional then he is responsible for paying his charges. A tenant has to pay 2% to 5% of the annual rent of a particular property. For example, if the annual rental value of a property is AED 100,000 then a tenant will have to pay a commission ranging somewhere between AED 2,000 to AED 5,000. Normally, landlords do not pay any commission to real estate agents but they may pay up to 8% of the annual rent based on the decided terms and conditions.

Charges For Commercial Rental Properties

If you are looking for a commercial property in Dubai then you should also consider paying 5% to 10% of the annual rent to the involved real estate broker. On the contrary, if a landlord hires a real estate agent then he is required to pay up to 8% of the annual rent to the real estate professional for his services.

What Is The Mechanism To Determine The Broker’s Fee?

If you obtain the services of a real estate agent or agency, you are required to pay a specific percentage for his/its services. Generally, the commission rate varies from property to property or transaction to transaction. However, brokers’ normally charge 2% to 3% of the total value of a transaction. For example, if the transaction amount of a property is AED 1,000,000 then the broker’s fee will be AED 2,000 or AED 3,000 based on the drafted contract. Furthermore, you can also negotiate or bargain over these charges and can mutually decide on a percentage because there is no set standard.

Who Pays Real Estate Agent’s Commission?

Based on the market norms, normally a buyer pays the commission amount. Typically, it is 2% to 3% of the property value. However, the real estate law does not specifically bind anyone to pay that amount. It is just an established norm. For off-plan properties for sale in Dubai, a developer or seller normally pays the charges of the broker or professional.

Conveyance Cost:

A buyer also needs to pay expenses such as conveyance costs when buying a property in Dubai, UAE. It is not the same for all transactions because it depends on a number of factors like the nature of transactions and the used services. However, the normal range for this cost lies somewhere between AED 5,000 and AED 10,000.

What If Multiple Agents Are Offering Their Services For The Same Property?

The Law No, 85 of 2006 deals with the charges of brokers in Dubai. This law states, if there are multiple real estate brokers working with a client on the same project then the client is required to sign contracts with every broker. A property buyer or seller must negotiate terms and conditions and sign the contract with every involved real estate agent or broker. This contract must be registered with the Dubai Land Department (DLD) to ensure proper adherence to the decided terms.

Are There Any Factors That Can Influence Brokers’ Fees?

Yes. There are a number of factors that can somehow impact the commission percentage of brokers. Let’s explore some of the commission influencing factors!

The Classification Of Property

The broker’s fee normally varies based on the type of the property. It can not be the same for residential, commercial and industrial real estate. Furthermore, the charges for an off-plan property for sale in Dubai will also differ then the fees of a real estate agent if there is a ready-to-move-in property. Based on that, a buyer must clearly convey his real estate interests to determine the broker’s fee.

Property Value

Furthermore, the charges of real estate brokers also vary based on the value of properties. Generally, the percentage of commission goes down if the value of a property is high. So, if you are purchasing a high-value real estate then a broker may decide to charge a low commission fee.

The Condition Of The Property Market

This factor not only influences the value and cost of real estate but also the commissions of real estate agents. For example, if there is a buyers’ market which means the number of units are greater in number then the number of buyers or the supply is greater than the demand of real estate then investors can negotiate a lower fee for the services of a real estate broker.

The Bottom Line:

When you start buying property, you generally get the services of a real estate broker. A real estate agent or broker is basically a real estate professional who has a deep understanding of the property market. He not only finds the most suitable real estate investment opportunities but also assists you in drafting a better contract. His services are paid and normally a buyer has to pay 2% of the total transaction or total selling value of a property. This percentage varies based on the type and value of real estate.

Let Us Simplify Your Journey To Owning Property In Dubai:

Kelt and Co Realty is a distinguished real estate agency in Dubai. It aims to bring the most suitable and profitable real estate investment opportunities based on the specific needs, demands and preferences of its clients. In simple terms, it offers tailor-made real estate services, allowing investors to realize their investment objectives and make profitable decisions. If you desire to buy property in Dubai then get our professional services to buy your favorite property and make an impact!

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