Real Estate Business in Dubai, UAE
Dubai's real estate market is consistently in high demand, surpassing even prestigious property hotspots like New York and London in terms of yield. The region boasts some of the highest returns on real estate investments compared to other popular global destinations. Furthermore, the convenience of eGovernment services has streamlined the entire process, making online transactions such as payments, visa applications, and certifications easier than ever.
This naturally positions Dubai's property market as an appealing choice for international investors. Where there's demand, there's opportunity. Whether you aim to invest directly in real estate, establish a property management firm, or launch a real estate brokerage, there can be few promising locations than Dubai.
What Is Real Estate Company?
A real estate brokerage company is a business that deals in the buying and selling of properties. Real estate businesses can be large or small and operate differently. Some real estate companies specialize in a specific type of property, such as commercial real estate or residential real estate. Other realtors may focus on a particular geographic area.
Real estate businesses typically have a network of agents who help buy and sell properties. The real estate agents work with potential buyers and sellers to show them properties that meet their needs. They also negotiate prices and help to complete the sale.
Benefits of Opening a Real Estate Company in Dubai
Opening a real estate company in Dubai comes with numerous advantages that make it a lucrative venture.
Great Opportunities
The real estate industry in Dubai is poised for significant growth. The increasing interest of investors in this market indicates a rising demand for real estate services and offers. To capitalize on this expanding market, starting a real estate company in Dubai is a strategic move.
High Returns
The UAE boasts a beautiful landscape and a rich cultural heritage, making it an attractive destination for property investment. When you establish a real estate company in Dubai, you can expect substantial profits. Moreover, the earnings from your investments can be reinvested to further expand your business.
Easy Licensing Process
Starting a real estate company in Dubai is a straightforward process. You need to adhere to the necessary procedures, including passing the real estate exam, which ensures that qualified individuals operate in the industry. Once you've successfully completed these steps, you can proceed to apply for a license.
Strong Support System
Success in the UAE requires understanding the local culture and business practices. Launching a real estate company in Dubai demands adaptation to the city's unique environment and work ethos. Fortunately, the Dubai government offers robust support, including assistance with financing and establishing a physical office, to facilitate your business endeavors.
Common Business Activities for Real Estate firms in Dubai
There are various property-related business activities to consider. Defining your business activities is crucial as it dictates the type of license required. Whether you're planning a real estate brokerage, property consultancy, or similar ventures, your license must reflect these activities. You can specify multiple business activities and add more later if needed. The license type should align with your company's objectives. For instance, by registering as a real estate brokerage, you can legally represent property sellers, handle rentals, property management, and provide sales and leasing consultations.
- Professional Company
- Sole Proprietorship
- LLC (Limited Liability Company)
- Partnership en-Commendam
- Joint Venture
- Private Shareholding
- General Partnership
- Public Shareholding
Required Documents to get Real Estate Company License in Dubai
The documents needed to obtain a license can vary based on your business type. Here are a few examples of most common required documents:
- Proof of passing the Real Estate Exam.
- A valid passport.
- Proof of having a physical office space.
- Proof of having a licensed broker.
- Proof of having an accountant who is registered with RERA.
- A letter of recommendation.
- Your official degree.
- Criminal record.
- A RERA-approved property valuation certificate.
- Copies of your bank statements and credit card bills for the past three months.
Steps to Launch a Real Estate Company in Dubai, UAE
To acquire a real estate license in Dubai, thorough planning and preparation are necessary. It's imperative to gather all the required documentation and information in advance to avoid encountering any issues during the application procedure.
Firstly, selecting a suitable business location is essential. You have two options: you can either opt for a free zone or go for the mainland. Each jurisdiction comes with its distinct benefits, features, requirements, and limitations.
Opting for a free zone grants you the advantage of 100% ownership of your business, whereas the mainland allows only 49% ownership, with the remaining 51% allocated to the Emirates ID holder. Therefore, it's crucial to make a well-informed choice regarding the economic zone.
The next step involves choosing a specific business activity in Dubai. You can select from various business activities, including:
- Professional Company
- Sole Proprietorship
- LLC (Limited Liability Company)
- Partnership en-Commendam
- Joint Venture
- Private Shareholding
- General Partnership
- Public Shareholding
Defining your business activity upfront is crucial as it determines the type of permissions you'll need. For instance, if you register "real estate brokerage" as your business activity, you can legally represent property sellers, rent buildings, manage properties on behalf of owners, and provide consultation on property sales and rentals.
With a wide range of property-related business activities to choose from, aligning your chosen business type with your business's demands and goals is vital. Given the complexity of this decision, it is advisable to seek the assistance of a business consultant in Dubai.
Once you've established your business model, it's time to choose an appropriate name for your company. Opt for a name that complies with government criteria. Consider including terms like "broker" or "real estate" in your company name, as such terms can make a significant impact and convey the nature of your business.
Visit the Department of Economic Development or the relevant authorities in the free zones to gain approval and register your chosen company name. After successful registration, you'll receive initial approval via email. You'll also need to authenticate your associated documents through Tasheel.
Prior to applying for a license, you must enroll in the Dubai Real Estate Institute's Certified Training for Real Estate Brokers course (DREI). This certification is a prerequisite for obtaining a license. To become a registered real estate broker in Dubai, you must pass an examination at the end of the course and acquire a Good Conduct Certificate from the Dubai Police.
Following this, you should contact RERA to obtain your broker ID. Once you possess your broker ID, you can officially embark on your career as a real estate agent in Dubai. It's important to note that since each emirate has its own real estate regulatory body, having a RERA broker ID is essential for working in Dubai, and you must renew your license annually.
Don't overlook the Memorandum of Association (MoA). The MoA must be prepared in accordance with the protocols established by the Department of Economic Development (DED) and UAE commercial law. Additionally, it is crucial to notarize the MoA.
Now that you've determined your business activity and company name, you're ready to apply for a trade license. If you're applying for a trade license on the mainland, you'll need to visit the Department of Economic Development. For free zones, you'll have to approach the respective authorities.
During the license application process, you'll be required to submit specific documents.
Subsequently, you'll need to obtain final approval in the form of a professional services license. This license is essential for those engaged in property management or brokerage services in Dubai. To obtain it, you'll need to once again submit the necessary documents and applications. Upon acceptance of your application, you'll be issued a trade license.
Prior to commencing your business operations, real estate brokerages in Dubai must secure approval from the Dubai Land Department (DLD). The DLD is the government body responsible for managing real estate-related activities in the UAE.
As a real estate business owner in Dubai, having your physical office space can set you apart from the competition. It enhances your credibility as customers perceive you as an ethical businessperson, ultimately earning their trust.
Remember that the process may vary depending on your chosen econmic zone and business activities. Consulting legal and business experts familiar with real estate business industry is highly recommended.
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Cost of opening a Real Estate Company in Dubai
To establish a real estate brokerage in Dubai, securing a real estate brokerage license is mandatory. The minimum cost for obtaining such a license for an LLC typically begins at approximately AED 18,500.
To obtain the license, you must successfully pass the registration exam administered by the Real Estate Regulatory Agency (RERA). The exam fee, which is part of the overall expense associated with opening a real estate brokerage in Dubai, varies depending on your level of educational qualification.
It's important to note that the total cost of establishing a real estate brokerage in Dubai can fluctuate based on factors such as your business location and the specific activities you intend to undertake.
A Real Estate Brokerage company deals with buying and selling properties. They can specialize in various property types and geographic areas.
Opening a real estate company in Dubai offers opportunities for growth, high returns, a straightforward licensing process, and strong government support.
Common business activities for real estate firms in Dubai include real estate brokerage, property consultancy, property management, and sales and leasing consultations.
Required documents for a real estate company license in Dubai typically include proof of passing the Real Estate Exam, a valid passport, proof of a physical office space, a licensed broker, an accountant registered with RERA, and more.
The steps to launch a real estate company in Dubai include choosing a business location, selecting your business activity, naming your company, obtaining RERA certification, preparing a Memorandum of Association (MoA), applying for a trade license, securing approval from the Dubai Land Department, and obtaining office space.
The cost of opening a real estate company in Dubai starts at approximately AED 18,500 for an LLC license. Additional costs may include exam fees and can vary based on factors like business location and activities.
Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?
