Dubai is known for opportunities like its well-developed architecture & a fancy lifestyle. These facilities attract thousands of people to own land in the UAE. This high demand boosts the real estate market, making it an option for many worldwide.
Yes, you get my point. You can launch your real estate business in Dubai. This blog has compiled all the important information about licenses, eligibility, and processes to help you complete the requirements. We also highlight the benefits of having a real estate agency in this developing market.
Let’s Start A Business In UAE Together,
Types Of Licenses and Certificates:
Operating and conducting business activities requires certain certificates & licenses, just like in any other country. Here are the details:
Trade License
The first is the trade license from the DED regulatory authorities. This license allows you to run your business activities in the Emirates.
Real Estate Brokerage License
This license, issued by DLD, the Dubai Landing Authority, is specially assigned to real estate firms and allows you to engage in real estate transactional activities within the UAE.
Alongside these Licenses, it also requires:
RERA Certification
RERA looks after Dubai’s real estate sector and ensures you are implementing all the rules and regulations. The government enforces this test.
Ejari Registration
To manage rental properties, you must register using the Ejari system. This system oversees rental agreements in Dubai and is required by the government for landlords and property owners.
Starting A Real Estate Business In Dubai:
Here I have broken down the process into simplified chunks so your dream of starting your real estate agency in Dubai can come to life. Follow every step to ensure that your process is smooth.
- Develop Your Business Plan
The first step is to list the necessary information about your company and turn that document into your business plan. This information possesses your company’s goals, marketing strategy, financial plans & target market. Overall, it’s a complete follow-up plan for how you will run your business.
- Select Your Business Location
Next, decide whether to operate on the Dubai mainland or in a free zone. Mainland offers more flexibility, while free zones provide tax benefits and an easier setup process.
- Choose the Legal Structure
Select from two legal frameworks normally used for real estate businesses, which will help you and your firm manage your operations and finances more effectively.
- Sole Proprietorship
- Limited Liability Company (LLC)
- Register Your Business Name
Choose a name for your business, but remember that having an English name in Dubai can cost you more. Then, apply your name to the Department of Economic Development (DED) to register as a trade name.
- Prepare Necessary Documents
Compile all the necessary documents, including an application form, passport copies of the owner or manager and all shareholders, visa copies of all shareholders, and attested degree certificates of the manager and partners.
- Complete Business Registration with DED
Register your real estate business with the DED. This involves choosing a trade name, obtaining the necessary approvals, and completing the registration forms.
- Finish DREI Training
Enroll in the Training for Real Estate Brokers program the Government’s Official Institute “DREI” offers. After this, you will appear on the RERA test.
- Obtain RERA Approval & Licenses
Get a real estate broker license from the RERA to start your business activities in UAE. Ensure you meet all requirements and submit the important documents.
- Set Up Your Office Space
Find a physical office space for your business. Select a convenient and pocket-friendly location for you also; this location should meet the regulatory requirements to avoid any hurdle in your process.
- Open a Business Bank Account
Open a bank account in the UAE to make financial transactions for your company.
- Apply for Employee Visas
If you are hiring staff in Dubai who are not Emirates citizens, you must apply for their visas. For the staff hiring process and visas, collaborate with the General Naturalisation and Residency Department for visas and the Ministry of Labor for hiring staff.
- Final Approvals and Considerations
The Dubai Land Department (DLD) will give the final approval. This department finalizes your approval according to your business activities. Following these steps, you can successfully start a real estate business in Dubai.
What Is The Cost of Start Real Estate Agency In Dubai:
Basic Cost Breakdown
License Voucher: Around AED 27,000
Starting a real estate business in Dubai involves various costs, with the estimated budget beginning at approximately AED 27,000 for the license voucher. The license voucher is the invoice the Department of Economic Development (DED) issued for incorporation. It includes government licensing fees.
Additional Fees
In addition to the basic costs, there are several other fees to consider:
- External Approval from RERA: AED 5,000
- Online Courses for Brokers: AED 525
- Broker Exam: AED 773
Cost Of Setting Up Your Office In UAE:
The cost of setting up your real estate business in Dubai may vary on various factors such as:
- Location: Office area affects the rental price.
- Size: Larger offices cost more.
- Office Rental Price: Varies widely in Dubai.
- Company Name: English names may cost more.
- Type of Business Activity: Different activities have different costs.
- Additional Activities: Adding extra activities to your license increases cost.
Advantages of Starting a Real Estate Agency in Dubai
Fast Growing Economy
Dubai’s fast-growing economy makes the real estate market exciting and offers good chances for businesses to grow.
Diverse Property Options
Dubai has many types of properties, from affordable to luxury, meeting different needs and preferences.
Business Hub
Dubai is a global business center that attracts international companies and wealthy clients, creating a lively real estate market.
Record Transaction Volumes
In 2022, Dubai saw a huge increase in real estate deals, reaching $41.13 billion, showing strong market activity.
Foreign Investments
Dubai is one of the top places in the world with foreign investments. The real estate sector has grown by 100% recently, drawing money from worldwide.
Tourism Infrastructure Development
Over the next 20 years, built-up areas in Dubai are expected to grow by 134%, promising good returns on property investments from 7% to 13%, thanks to ongoing tourism projects.
Major Developers Presence
Many famous global developers work in Dubai, supported by government help, ensuring high-quality projects and investment opportunities.
Tax Benefits
Dubai offers zero taxes on real estate and international activities, making it a tax-friendly place for investors.
Stable Infrastructure
Dubai has reliable infrastructure and top-class amenities, improving the quality of life and business operations.
Attractive Policies
Dubai’s investor-friendly policies give local residents and foreigners equal rights, creating a good environment for business growth and development.
Global Reputation
Dubai is famous, and individuals from around the world like to invest here, which ultimately results in the growth of the real estate market.
Start Your Real Estate Business Now With Ignite Zone:
The perks in this market are countless, but the process can be frustrating. You have to follow many rules to get the license; sometimes, you can get rejected. To avoid this rejection and save money on this process, pick the right business consultant agency to guide you and help you avoid the problems. With the right help and following the rules, Dubai offers many chances to grow and succeed in real estate.
