I am considering buying a property in Dubai, but do not understand the commission rates that real estate agents charge. I have been searching online for guidance on this issue, and wondered if the Real Estate Regulatory Agency has set a fixed percentage that can be charged by agents.
At the moment, all I am seeing is that it could be anywhere between 2 per cent to 5 per cent. Why isn't it a set amount and is it possible to negotiate with a broker on the commission? Are both the seller and buyer charged a commission – if so, is it the same amount? AJ, Dubai
With reference to broker’s commissions, I can confirm that the standard industry norm in the UAE is currently 2 per cent plus VAT and is normally payable by the buyer. That said, any broker who charges more than 2 per cent is not breaking any rules. The commission payable is a contract between two parties and as long as both parties agree, the fee can be whatever is decided.
Broker fees in the UAE are, in fact, one of the lowest when compared with other parts of the world such as the US and Europe, where the fees start from 5 to 6 per cent and sometimes even more for primary market sales.
It is worth noting that agents here in Dubai are charging sellers, too, and this is perfectly legal. Rera states that a broker can charge both buyer and seller as long as the parties are aware of the facts and have agreed to the same.
In the primary market, many developers offer much higher fees than 2 per cent to brokers, often doing so to entice agencies to focus on their inventory over the competition.
When it comes to negotiating fees, this largely depends on the actual transaction and, of course, on a case-by-case basis, but I would point out that there is no harm in asking the question if the fees are negotiable.
This agreement of fees should be noted on Rera form B, which is the contract between the buyer and the broker when initially engaging their services. The fees of the buyer and/or the seller should normally be the same, but again this is not necessarily set in stone and there could be many reasons why this is not the case. The fees attached to a seller should be agreed and mentioned on Rera form A.
The fees of the buyer and/or the seller should normally be the same, but again this is not necessarily set in stone
The last point I would like to stress is the misconception of buyers that they need to speak to a multitude of brokers in order to get the best deal. Doing this often has the opposite effect. My advice is to pick one agency and one broker and stick with them. In the event that the broker doesn’t have the inventory or properties that you like, this is not the end of the world as often brokers will work with their counterparts from different companies in order to find the required property.
Make sure you pick a broker registered with Rera and ideally use someone via a recommendation. Broker profiles can be found on property listing portals such as Bayut or Property Finder. Build a rapport and trust between the two of you, which I guarantee will lead to a successful sales conclusion.
Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com
UAE currency: the story behind the money in your pockets
Navdeep Suri, India's Ambassador to the UAE
There has been a longstanding need from the Indian community to have a religious premises where they can practise their beliefs. Currently there is a very, very small temple in Bur Dubai and the community has outgrown this. So this will be a major temple and open to all denominations and a place should reflect India’s diversity.
It fits so well into the UAE’s own commitment to tolerance and pluralism and coming in the year of tolerance gives it that extra dimension.
What we will see on April 20 is the foundation ceremony and we expect a pretty broad cross section of the Indian community to be present, both from the UAE and abroad. The Hindu group that is building the temple will have their holiest leader attending – and we expect very senior representation from the leadership of the UAE.
When the designs were taken to the leadership, there were two clear options. There was a New Jersey model with a rectangular structure with the temple recessed inside so it was not too visible from the outside and another was the Neasden temple in London with the spires in its classical shape. And they said: look we said we wanted a temple so it should look like a temple. So this should be a classical style temple in all its glory.
It is beautifully located - 30 minutes outside of Abu Dhabi and barely 45 minutes to Dubai so it serves the needs of both communities.
This is going to be the big temple where I expect people to come from across the country at major festivals and occasions.
It is hugely important – it will take a couple of years to complete given the scale. It is going to be remarkable and will contribute something not just to the landscape in terms of visual architecture but also to the ethos. Here will be a real representation of UAE’s pluralism.
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SQUADS
Bangladesh (from): Shadman Islam, Mominul Haque, Soumya Sarkar, Shakib Al Hasan (capt), Mahmudullah Riyad, Mohammad Mithun, Mushfiqur Rahim, Liton Das, Taijul Islam, Mosaddek Hossain, Nayeem Hasan, Mehedi Hasan, Taskin Ahmed, Ebadat Hossain, Abu Jayed
Afghanistan (from): Rashid Khan (capt), Ihsanullah Janat, Javid Ahmadi, Ibrahim Zadran, Rahmat Shah, Hashmatullah Shahidi, Asghar Afghan, Ikram Alikhil, Mohammad Nabi, Qais Ahmad, Sayed Ahmad Shirzad, Yamin Ahmadzai, Zahir Khan Pakteen, Afsar Zazai, Shapoor Zadran
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Rating: 1 out of 4
Running time: 81 minutes
Director: David Blue Garcia
Starring: Sarah Yarkin, Elsie Fisher, Mark Burnham
BMW M5 specs
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Power: 727hp
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Transmission: 8-speed auto
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On sale: Now
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Monster
Directed by: Anthony Mandler
Starring: Kelvin Harrison Jr., John David Washington
3/5
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
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The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
