By Bimal Lulla, Founder of AXXA
By our own numbers, a basic brokerage set-up with a few agents, one admin, an accountant and basic portals costs about AED 50,000 a month, or AED 600,000 a year. That is my operating example, not a minimum price for every Dubai brokerage. Your own budget depends on the company you want to build, and it needs to include your time as well as cash.
What are the fees to open a brokerage?
The DLD fee is only one part of the budget.
DLD's real-estate licensing service lists an annual fee of AED 5,000 plus a AED 20 knowledge and innovation fee. That AED 5,020 is the DLD fee only. It is not the full trade licence, office or business set-up cost.
You also need to budget for the company's set-up, premises, equipment and the arrangements required to operate. Some are initial expenses; others recur. Mixing the two can make an attractive first-year number difficult to use when planning year two.
What does it cost month after month?
The continuing costs are the part you need to carry through a quiet month.
My AED 50,000 monthly example covers a few agents, one admin, an accountant and basic portals. It excludes marketing spend. A smaller operation may cost less; a company with more staff or services may cost more.
Build your own worksheet rather than treating my number as a quote.
| Cost to obtain a quote for | What to include |
|---|---|
| Premises | Rent, deposits, utilities and service charges |
| People | Admin, accounting and any other staff or outsourced support |
| Portals and systems | Listing package, a CRM and the users you need |
| Operations | Compliance support, renewals and business administration |
| Initial set-up | Equipment, fit-out and other one-off expenses |
| Cash reserve | Costs that continue while you wait for commission |
Keep one-off costs separate from annual running costs. Include every expense relevant to your plan.
What does ownership cost in time?
In my experience, operations, back office and accounts take about two hours of the owner's day.
Those hours can go on developer registrations, payment follow-ups, accounts, renewals and supporting transactions. They still need attention when you would rather be with a client.
Owning the company means organising and overseeing those functions. It does not mean you must personally perform every accounting, admin or compliance task. You can appoint qualified support, but that has a cash cost and still requires management.
At what income does owning beat an 80% split?
For a simple cash comparison, divide your annual brokerage costs by 20%.
The assumption is that you close the same business under either route. Owning lets you retain 100% before company costs; an 80% split leaves 20% with the brokerage. Compare commission excluding VAT, before tax, owner time and any change in sales productivity. Costs that apply equally under both routes should not be counted twice.
Break-even commission = annual brokerage costs ÷ 20%.
Using my AED 600,000 annual example, that gives AED 3 million.
| Same annual commission, excluding VAT | At an 80% split | Owning, less AED 600,000 company costs |
|---|---|---|
| AED 1 million | AED 800,000 | AED 400,000 |
| AED 3 million | AED 2.4 million | AED 2.4 million |
| AED 4 million | AED 3.2 million | AED 3.4 million |
These are illustrations, not forecasts. They assume your own deals carry the entire overhead. If other agents work in your company, include the shares you retain from their deals as owner revenue. That can change the comparison significantly.
Does tax change the comparison?
It can, so the table is a comparison before tax.
The general UAE corporate-tax rate is 9% on taxable income above AED 375,000, subject to the applicable rules and reliefs. Taxable income is not the same as revenue. UAE Government corporate-tax guidance.
Eligible resident taxable persons may elect Small Business Relief where revenue is no more than AED 3 million in the current and relevant previous tax periods, subject to conditions. The Ministry of Finance has extended the relief to tax periods ending by 31 December 2029. It is not automatic exemption for every company below that revenue. Use advice on your own circumstances before relying on it in a budget.
What does AXXA provide instead?
AXXA lets you keep 80% of every deal's commission, excluding VAT, with no desk fees or monthly charges.
The company handles the back-office structure, with admin and transaction support, finance and compliance functions, developer registration and follow-ups. You have access to a CRM, unlimited standard portal listings and office facilities. I also provide a monthly market session, difficult-deal guidance and personal-brand guidance.
Your own clients and database stay yours. Any referral fee you owe a third party is yours to settle from your share.
Commission is paid within three working days of the payment reaching AXXA, once your documents and KYC for the deal are complete. It is the same on every deal type; on off-plan, the payment is the developer's payment. Compliance conditions also apply; ask me to take you through them on the call. AXXA is the agent model of Blue Collection Real Estate Brokers LLC.
If you prefer to focus on selling with the back office handled, put your own figure in the calculator. We can discuss the fit: Book a call.
What are the common questions?
- Is AED 600,000 the minimum annual cost of a Dubai brokerage?
No. It is my own basic operating example, with a few agents, one admin, an accountant and basic portals, excluding marketing.
- How do I compare ownership with an 80% split?
Divide the additional annual company costs by 20%, comparing the same commission excluding VAT. Then account for owner time, tax and income retained from other agents.