September 20, 2025 | Dubai, UAE: As property transactions in Dubai and beyond become more competitive, many UAE real estate brokers are moving to commission only arrangements. For buyers, sellers, and agents alike, these commission only models are changing how deals are made, fees are structured, and relationships with clients are built.
When real estate brokers work on an only commission basis, they earn solely from closing transactions rather than fixed salaries or retainers. This incentivises performance: the more property deals they close, the more income they generate. For anyone looking to hire a broker or become one, understanding the implications of commission only is increasingly important in today’s real estate market.
Here’s a guide to how only commission works, why real estate brokers are choosing it, what to watch out for, and how it affects you as buyer or seller.
What Does “Commission Only” Mean for Brokers?
A commission only model means the broker’s entire compensation comes from a percentage of the property’s sale price, or from rent (in case of rentals). There is no base salary or regular stipend. In the context of UAE real estate brokers, this means their income depends entirely on their ability to make sales or close leases.
Typically, commission rates in Dubai range between 2%–5% on off-plan property sales, 2%-3% on resale deals, and around 5%-10% of annual rent for rentals. These rates form the basis for many commission only agreements.
Why UAE Real Estate Brokers Are Switching to Commission Only
Several factors are driving the trend toward commission among brokers:
- Low overhead costs – Without fixed salaries, brokers can work independently or remotely, reducing office and administrative expenses.
- High incentives – Brokers get rewarded for performance; closing high-value sales means high commission. For UAE real estate brokers, this becomes especially attractive in luxury, off-plan, or prime location markets.
- Greater flexibility & competition – Clients are more likely to negotiate commission rates when they know brokers are commission-only. This means brokers need to offer extra value (better service, quicker responses, strong networks) to win business.
- Technology & direct platforms – Some new platforms in the UAE are pushing zero-commission or low-fee listing models (owners deal directly with buyers), increasing pressure on traditional brokers to justify their commission-only fee with quality of service.
Advantages & Risks for Clients & Brokers
For Buyers/Sellers:
Pros:
- If a broker is commission-only, there is no upfront cost; you pay only if a deal closes.
- The broker has incentive to work harder, negotiate better, and close efficiently.
Cons:
- Brokers may prioritize higher-value deals (where their commission is larger), possibly overlooking smaller listings.
- In some cases, quality may suffer if broker spreads themselves thin to land more commissions.
For Brokers:
Pros:
- Earnings can be unlimited depending on deal size.
- More freedom, agents can decide which deals to pursue.
Cons:
- Income instability in slow markets.
- Expenses (marketing, viewings, legal documents) often borne by broker until commission is paid.
Transparency: What You Should Ask
If you’re engaging with real estate brokers in UAE under a commission only model, ask these questions:
- What exactly is the commission rate? Is it negotiable?
- Who pays the commission (buyer, seller, or both)?
- When is the commission due (upon sale, registration, handing over)?
- Are there any other fees or hidden charges (for legal documents, marketing, inspections)?
Market Trends and Future Outlook
Data shows commission rates have held fairly steady in recent years: off-plan sales 2%-5%, resale 2%-3%, rental commissions around 5%-10%.
However, as more real estate brokers adopt commission models, client expectations are rising. Brokers who provide added services such as virtual tours, staging, legal help, after-sales support are likely to stand out. Commission doesn’t necessarily mean barebones; it means broker income depends on full end-to-end delivery.
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