Dubai is known for its luxurious skyscrapers, stunning architecture, and booming real estate market. International real estate investors now frequently go to Dubai. It is the perfect site to launch a real estate firm because of its advantageous location, first-rate infrastructure, and alluring tax policies.
To start a real estate business in Dubai, you will need to obtain a real estate brokerage license from the Dubai Land Department. This license allows you to buy, sell, rent, or manage properties on behalf of clients. The process of setting up a real estate business in Dubai involves several steps, including submitting an application, providing the necessary documentation, and meeting the licensing requirements set by the authorities.
Therefore, let us guide you through the steps involved in starting a Dubai real estate business, from obtaining the necessary license to setting up your office and getting your business up and running.
What Licenses Are Required to Start a Real Estate Business in Dubai?
You must receive licenses and permissions from the authorities to launch a real estate firm in Dubai. The following licenses you must get:
1. Trade License
The first and most crucial license you require to launch any business in Dubai is a trade license. It is also given by the Department of Economic Development (DED) of Dubai and permits you to lawfully carry out commercial operations in the emirate.Â
2. Real Estate Brokerage License
This specialized license, obtained from the Dubai Land Department (DLD), is mandatory for all real estate firms. It authorizes you to engage in real estate transactions within the UAE.
In addition to these core licenses, consider these requirements:
3. RERA Certification
To qualify for the real estate license, you (or your employees acting as real estate agents) must complete a mandatory training course offered by the Dubai Real Estate Institute (DREI) and pass the RERA exam. RERA stands for Real Estate Regulatory Agency, the entity overseeing Dubai’s real estate sector.
4. Ejari Registration
The Ejari system governs rental agreements in Dubai. If you plan to manage rentals, registering with Ejari is necessary for both landlords and property owners.
How To Start a Real Estate Business in Dubai? Step-by-Step Process
Legal business registration is mandatory everywhere, including in Dubai. Therefore, those who are keen on setting up a real estate company in Dubai can do it in either the free trade zones or on the Dubai mainland.
To start a real estate business in Dubai, here are the steps you need to follow in order:
1. Craft a Business Plan
This should outline your company’s goals, target market, marketing strategy, financial projections, and operational structure. Conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can help identify your competitive advantage.
2. Choose Your Business Location
Decide whether to operate on the Dubai mainland, which offers more flexibility, or within a free zone, which may have specific restrictions but can offer tax benefits and a streamlined process.
3. Decide Legal Structure to Start a Real Estate Business
Choose the appropriate business structure before launching a real estate buying and selling brokerage company. This will also assist in positioning the business in the most advantageous operational and financial position.
To conduct real estate brokerage business in Dubai, there are primarily two types of business structures that may be registered:
4. Registering a Trading Name
Once you’ve chosen your company’s legal form or business model, you must apply to the Department of Economic Development (DED) in Dubai along with all necessary supporting documentation to register your trade name.
5. Gather Required Documents
Prepare documents as per the requirements, this may include:
- Application form
- Passport copies of the owner or manager and all shareholders
- Visa copies of all shareholders
- Attested high school or university degree certificates of the manager and partners.
6. Register Your Business with DED
Register your real estate business with the Department of Economic Development (DED) in Dubai. This involves choosing a trade name, obtaining necessary approvals, and completing registration forms.
7. Get RERA Approval & Obtain Necessary Licenses
In Dubai, real estate companies must obtain a real estate brokerage license from the Real Estate Regulatory Authority (RERA). Ensure you meet all requirements and submit the necessary documentation to obtain your license.
8. Complete RERA Training
Enroll in the mandatory Certified Training for Real Estate Brokers program offered by the Dubai Real Estate Institute (DREI). Passing this course is essential for the licensing process.
9. Office Setup
Establish a physical office space for your real estate business. Choose a location that is convenient for your clients and complies with regulatory requirements.
10. Business Bank Account
Open a dedicated bank account for your company‘s financial transactions.
11. Employee Visas
If you plan to hire staff requiring visas, initiate the visa application process. Depending on your business activities, you might need to register with additional entities like the Department of Naturalization and Residency (DNRD) for visas and the Ministry of Labor (MOL) for employing staff.
12. Additional Considerations
Depending on your specific operations, you might need final approval from the Dubai Land Department (DLD).
What is the Cost of Setting up a Real Estate Business in Dubai?
The real estate brokerage license for an LLC generally costs around AED 12,900. Once you have a RERA training certificate in hand, you can start the application process for an estate brokerage license. RERA charges AED 5,020 per activity. The approximate cost of opening a real estate company in Dubai starts from AED 21,000.
However, legal fees, registration fees, office space leasing fees, getting required permissions and licenses, employing staff, marketing and advertising charges, and other operational costs are all involved in starting a real estate firm in Dubai.
The size and scope of the company, the location of the office, the number of workers, and the marketing plan are all variables that will affect the precise cost of starting a real estate firm in Dubai.
For a more precise cost of setting up a real estate business in Dubai and to ensure compliance with the latest regulations, consult with business setup specialists in Dubai at Shuraa. They can guide you through the specific requirements and fees applicable to your business plan.
Benefits of Starting a Real Estate Business in Dubai
Starting a real estate business in Dubai might have several advantages. Here are some of the key benefits of setting up a Dubai real estate business.
1. Booming Real Estate Market
Dubai’s real estate market is one of the most desirable marketplaces in the world for investors and is continually expanding. Due to Dubai’s rising real estate demand, there are several prospects for real estate companies to prosper.
2. Strategic Location
Due to its advantageous location between Europe, Asia, and Africa, Dubai serves as an important worldwide economic hub. This implies that real estate companies in Dubai have simple access to a large pool of potential clients and collaborators.
3. World-Class Infrastructure
Dubai has made significant investments in the development of its transportation, communication, and utility infrastructure. Dubai is now one of the world’s most technologically sophisticated and contemporary cities as a result. The real estate sector is supported by this infrastructure, which facilitates company operations and client access to properties.
4. Stable Economy
The real estate sector is heavily emphasized in Dubai’s stable and diverse economy. However, the government has taken action to guarantee that the real estate market stays stable and transparent, making Dubai an appealing location for real estate enterprises.
5. Ease of Doing Business
The Dubai government has put in place several policies to ease company operations in the city. Whereas this includes simplified licensing processes, a solid legal foundation, and a supportive regulatory atmosphere.
Start your Real Estate Business with Shuraa
Dubai is a great place to establish a real estate firm because it has a thriving real estate market, appealing tax laws, a prime location, first-rate infrastructure, a steady economy, and ease of doing business. Due to these elements, Dubai is the perfect location for real estate companies wishing to grow their operations and increase their revenues.
The process of launching a real estate company in Dubai is challenging and necessitates a full comprehension of the applicable laws, regulations, and licensing standards. It might take a long time and money to get the relevant licenses and permits.
But you may run a prosperous real estate business in Dubai if you follow the rules and have the required licenses. Don’t forget to consult a qualified advisor who can help you through the procedure and prevent any legal problems.
Contact us today for a Free Consultation at +971 44081900 or WhatsApp at +971 507775554 or drop an email at [email protected].
Frequently Asked Questions
1. How long does it take to get a RERA license in Dubai
The timeframe for obtaining a RERA license can vary depending on processing times, but generally, it can be achieved within 2-4 weeks if everything is submitted correctly.
2. What are the different types of real estate licenses in Dubai?
While the Real Estate Brokerage License is the most common, there are other specialized licenses depending on your area of focus. These may include Property Valuer licenses, Property Management licenses, and Facility Management licenses.
3. Do you need a license to sell real estate in Dubai?
Yes, selling real estate in Dubai requires a Real Estate Brokerage License issued by the Dubai Land Department (DLD) and a RERA certification. The RERA certification acts as your RERA Broker ID and is obtained after completing the training program and passing the exam.
4. Do I need a physical office to operate a real estate business in Dubai?
Yes, having a physical office space is typically required to obtain a trade license for your real estate business. However, some free zones may offer virtual office solutions that can be explored depending on your chosen setup.
5. What are the ongoing compliance requirements for operating a real estate business in Dubai?
Once established, you’ll need to maintain compliance with various regulations. This may include renewing your trade license and RERA certification periodically, following Ejari registration requirements for rentals, and adhering to ethical and professional conduct guidelines set by RERA.
6. Is Real Estate a Profitable Business in Dubai?
Yes, Dubai’s real estate market offers significant potential for profitability. With a growing population, a strong tourism sector, and a focus on infrastructure development, there’s a consistent demand for properties.
7. Are Free Zones a better option to start a real estate business in Dubai?
Free zones can be an attractive option for some real estate businesses. They offer benefits like simplified company setup, tax exemptions, and ownership repatriation. However, there are limitations. Carefully consider your business goals and consult business setup experts at Shuraa before deciding between a mainland or free zone setup.
