Dubai’s real estate market is booming and is predicted to continue growing in the upcoming years. Experts forecast that property values will rise, making it an ideal time to invest in this lucrative industry.
This year alone, the real estate market in Dubai is expected to be worth over $700 billion, with residential real estate accounting for over $400 billion. The good news is that this market is expected to keep expanding, which means that there’s plenty of room for growth and profit.
If you’re looking for a smart investment opportunity, opening a real estate company in Dubai could be the perfect choice for you.
This market offers significant opportunities for growth and success, and you could be part of this exciting industry.
To learn more about starting a real estate business in Dubai, check out this blog and discover how to turn your dream into a reality.
What are the procedures for opening real estate company in uae?
Choosing a Legal Structure:
The legal structure you choose depends on your nationality, business goals, property type, and location. Common options include a sole proprietorship or a Limited Liability Company (LLC). Learn more about types of legal structures in Dubai.
Selecting Business Activities:
We can assist you in selecting the most suitable business activities for your company.
Selecting Right Location and License
Choose Business setup in Free zone or setup your business in Mainland for your real estate company. Also, we can select the right license after we decide your business activties.
Registering Your Trading Name:
Choose a unique and relevant name for your real estate business that adheres to Department of Economic Development (DED) guidelines (avoiding offensive language and religious references). Register the chosen name with the DED.
Obtaining Initial Approval:
Secure approval from the DED for your chosen business activities. Consider seeking guidance from a business setup consultant like us tonavigate this process effectively. Additionally, acquire police clearance (a Good Conduct certificate) from the authorities.
Securing Office Space:
Find a suitable office location that aligns with your team size, budget, security needs, and desired area. Our Business setup consultants can assist you in finding the right office space for your business. Once finalized, register the office space with Ejari.
Acquiring RERA Approval:
The Real Estate Regulatory Agency (RERA) regulates Dubai’s real estate industry. To operate legally, you’ll need their approval.
Preparing a Memorandum of Association (MoA):
This document outlines your company’s objectives and structure based on your chosen business activities. The MoA should be prepared in Arabic, Dubai’s official language, but can include an English translation for reference. All founding members need to sign the MoA in the presence of a witness, followed by notarization by a public notary in Dubai.
Applying for a Trade License:
Once you have the necessary approvals, apply for a trade license from the DED. This license is essential for legal business operations.
Registering with RERA:
Upon acquiring your trade license, register your company with RERA to obtain a real estate license.
Training and Certification:
Real estate agents in your company must complete a RERA-approved training course offered by the Dubai Real Estate Institute and pass the RERA registration exam.
Obtaining Professional Practice Cards:
Apply for professional practice cards for each real estate agent in your company. These cards authorize them to legally practice real estate brokerage in Dubai.
Paying RERA Fees:
Finally, pay the RERA licensing fee associated with your company registration.
Registering with Government Departments (Optional):
If you plan to hire employees, register with relevant government departments such as the Ministry of Labor (MOL).
Dubai Land Department Approval:
Secure final approval from the Dubai Land Department.
What documents and other requirements are needed to start a real estate business in Dubai (for both foreign and UAE/GCC nationals)?
- Initial Approval from the Department of Economic Development (DED).
- Trade License/Business License issued by the DED.
- Memorandum of Association (MoA) outlining your company’s objectives and structure. (Note: Articles of Association are not typically required in Dubai).
- Police Clearance Certificate for all shareholders and directors.
- Passport copies of all shareholders and directors.
- Secured Office Space with a registered lease agreement.
- Evidence of a Registered Local Service Agent (if applicable) – This is only required for foreign companies without a UAE national partner.
- Real Estate Brokerage License from the Real Estate Regulatory Agency (RERA).
- RERA Approval.
While this list covers the general requirements, additional documents may be requested depending on your specific circumstances. We highly recommend consulting with business setup experts like us so that we can help you setup your business.
What is the Benefits of Starting a Real Estate Business in Dubai?
Thriving Real Estate Market in Dubai :
Dubai’s real estate sector is a major source of income, and experts predict continued growth in 2023 and 2024 with rising property values. This presents a prime opportunity for investors to earn strong returns.
Investor Confidence :
Dubai’s reputation as a global investment hub attracts a steady stream of international investors. This ongoing influx of capital contributes to market stability and growth.
Strategic Location:
Dubai boasts numerous attractions that draw tourists worldwide, making it a prime destination for rental properties. This provides consistent demand for your real estate services.
Favorable Government Initiatives:
The Dubai government actively fosters business growth through attractive tax policies and easy business setup procedures. This supportive environment makes Dubai an ideal location to launch your real estate venture.
What Activities Fall Under Real Estate?
- Buying and selling of real estate
- Real Estate Buying & Selling Brokerage
- Real Estate Registration Agent
- Leasing Property Brokerage Agents
- Leasing & Management of Self- Owned Property
- Jointly Owned Property Management Services
- Leasing Property Brokerage Agents
These are just a few of the many activities involved in real estate. You can choose the services that best align with your goals and interests.
Age Requirement for starting a real estate business in DUbai
There is no specific age restriction to own a real estate company. However, to become a licensed real estate broker and engage in brokerage activities, you must be at least 21 years old.
Minors as Shareholders:
If you are under 21 and wish to be a shareholder in a real estate company, you will need parental consent and approval from the authorities.
These are just a few of the many activities involved in real estate. You can choose the services that best align with your goals and interests.
Do you need a license to sell real estate in dubai?
To operate a real estate business in Dubai, you must obtain a real estate broker license and secure approval from the Real Estate Regulatory Agency (RERA). Operating without these licenses is a serious offence with significant legal consequences.
How to Plan Your Real Estate Business in Dubai?
While you’re likely aware of the growth and profitability of Dubai’s real estate sector, thorough planning is crucial before launching your business. Let’s delve into each step of the process:
Planning and Research
Understanding the Market :
Dubai offers diverse property types and investment options.
- Property Types: These can be broadly categorized into commercial and residential properties.
- Investment Options:
- Buy-to-Let: Purchasing a property to generate rental income. This is a solid strategy for steady cash flow.
- Property Flipping: Buying a property, renovating it, and selling it for profit. This requires expertise in market fluctuations and renovation to avoid losses.
- Off-Plan Properties: Investing in under-construction properties for potentially lower rates. Be aware of potential delays and have a backup plan to avoid over-investing in a single project.
- Real Estate Investment Trusts (REITs): Investing in companies that own and manage real estate, essentially acquiring a share of their profits. However, returns may be lower compared to owning property directly.
Target Audience and Business Model:
Determine your niche market (e.g., commercial or residential) and choose the right audience. Decide on your business model, whether focusing on brokerage or property management.
Legal Requirements to start a Real Estate business in Dubai
Legal Structure:
Choosing the right legal structure (e.g., sole proprietorship or LLC) is essential. It impacts taxes, liability, and overall operations. Consult with business experts for guidance.
Business License:
Selecting the most suitable Trade license for your activities can be complex. We can help you choose the right one for your real estate business.
RERA License:
Obtain a license from the Real Estate Regulatory Agency (RERA) by passing an exam and meeting specific qualifications.
DED Registration:
Register your business with the Dubai Department of Economic Development (DED).
Legal requirements To Start Your Real Estate Business In Dubai
Office Space:
Secure a professional office location that projects a trustworthy image and is visible in a high-traffic area.
Team Building:
Recruit qualified and licensed real estate agents to join your team.
Marketing Strategy:
Develop a marketing plan to attract clients and showcase your properties. In today’s digital age, a website and social media presence are crucial. Consider paid advertising on platforms like Google Ads or Facebook for lead generation.
Business Bank Account:
Open a dedicated bank account for your real estate business. We also assist with Opening a Business bank account for your needs.
What is the Estimated Budget for Starting and Operating a Real Estate Company in Dubai
While the minimum cost to obtain a trade license for a real estate company starts around AED 12,500, this represents only a portion of the total startup cost. The final amount depends on several factors:
- Type of legal structure: This can impact licensing requirements and fees.
- License fees: These vary depending on the specific licenses you require.
- Government fees: There may be additional government fees associated with business setup.
- Office space: The cost of office space will depend on location, size, and desired features.
Additional ongoing costs include:
- Marketing & Advertising
- Deposits & Security Fees for your office
- Equipment & Supplies for real estate office
- Employee Salaries & Commission
- Real Estate License Renewal Fees
Considering these factors, a low-end budget to start a real estate company in Dubai might range from AED 50,000 to AED 100,000.
Why choose us for opening a Real Estate Company in Dubai?
For guidance on minimizing expenses during business setup and formation, consulting with real estate business experts like us is highly recommended. We can help you complete the process and start your real estate business in dubai within a few weeks.
