Real estate agents in Dubai are on a high, earning up to AED150,000 per transaction, as the city’s headline-grabbing real estate market lures more and more global investors, industry insiders said.
The annual incomes of real estate agents, especially for the smartest among them – currently estimated at between AED400,000 and AED500,000 – are projected to see a significant jump in 2024, as they expand their offerings to the demanding clients to execute complex deals and quick turnarounds in making their properties earnings-ready through rentals or resale.
“Real estate agents in Dubai earn varying amounts, with transactions ranging from AED5,000 to AED150,000 as [real estate] deals in the city just don’t happen without agents,” Olga Strakhova, an analyst and broker at Colife Invest, a global real estate consultancy and rental services firm, told Arabian Business.
“Their earnings, however, depend on the nature of each transaction as the more complex the deals are, the higher the potential earnings,” she said.
Strakhova said as Dubai cements its position as a global real estate hub, agents play a crucial role in shaping its story.
“Their adaptability, negotiation skills, and market insights drive industry success. While monthly income may fluctuate with market changes, the annual earning potential knows no bounds for dedicated real estate professionals in the lively city of Dubai,” she said.
Real estate transactions in Dubai hit record levels in 2023, with property transactions in the third quarter posting a 23.1 percent rise, involving 31,399 real estate deals, according to the Dubai Land Department data.
Sales and rentals in Dubai fetch maximum earnings for agents
Industry insiders said on average, agents earn around AED50,000 from a property sale or purchase transaction and between AED10,000 to AED15,000 from a rental deal.
“But some deals can make agents up to AED150,000,” said Dior, a real estate agent in Dubai who goes by a single name.
He said it is hard to pinpoint the average earnings of a real estate agent in Dubai as it all depends on the person, their experience, passion, drive, and many other factors.
“I can say that working in this field is definitely not for everyone, as there is mostly no fixed salary, and in the early stages of one’s career, many find it challenging to cope with this!,” said Dior, who has been working in Dubai’s real estate for 1.5 years now.
The primary activity of real estate agents in Dubai revolves around assisting with the buying and selling of apartments, either on their own or with the help of an agency.
While agents take a 2 percent commission from their clients (buyers or sellers), they need to share half of their earnings with their agency.
Some agents close deals involving their own seller and buyer, taking home a 4 percent commission from such transactions, though such cases are said to be rare.
Industry insiders said it is more profitable for agents to work directly with developers (off-plan market), as they can earn a commission of 2 percent to 7 percent for each sale transaction.
Big firms like Emaar are said to pay agents 2.5-3 percent for units sold, the less established ones pay higher commissions.
All contracts for buying or selling apartments are done through the Dubai Land Department portal, and agencies which have special licenses can access the portal.
Holiday home companies offer another earning avenue for agents
Industry insiders said agents also increase their earning potentials by collaborating with holiday home companies.
“Agents assist those [holiday home companies] in finding apartment owners who want to lease their properties and generate income effortlessly. For each referred client, the agent earns a commission or percentage,” Vyacheslav Kuznetsov, Sales Lead at Colife Dubai, said.
Kuznetsov said their firm specifically focuses on finding agents and agencies that do not have their own holiday homes but want to complete the full transaction cycle for clients.
“Typically, if a property owner purchases an apartment with one agent, they continue to consult them, such as for property management. It’s advantageous for such agents to collaborate with property management companies to fully serve their clients,” Kuznetsov said, adding that Colife offers such services in the Dubai market.
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