Dubai, one of the metropolises in the United Arab Emirates, is one of the top destinations for real estate investment. Hence, starting a real estate business in Dubai can be a profitable investment considering the favourable incentives and constructive advantages offered by the Emirates. However, before stepping into this competitive industry, it is crucial to grasp the knowledge regarding the legal and regulatory requirements involved in the setup procedure.
So, here’s a detailed guide covering everything essential related to the real estate industry, including step-by-step directions on how to open a real estate company in Dubai.
Reasons to open a real estate company in Dubai
Before delving into the actual business setup process, let’s look at some of the reasons to consider this particular industry and market –
- Thriving market – With ongoing developments and infrastructure projects, and a rising demand for diverse properties, Dubai has witnessed considerable growth in the real estate sector. This generates lucrative opportunities for real estate businesses of all types, be it residential, commercial, or luxury properties.
- Strategic location – Dubai is situated at the junction of Europe, Asia, and Africa. Besides, the city is a global hub for business and tourism. This international connectivity, thus, facilitates the augmentation of the potential client base for real estate services, attracting more people from around the world to the city.
- Corporate-friendly atmosphere – Dubai accommodates business-friendly policies, a modernized bureaucracy, and a regulatory framework that encourages entrepreneurship and economic growth. The government actively enforces initiatives that support the industry and make it relatively straightforward to start a business in this sector.
- Exponential growth – With the growing development projects in Dubai, the demand for real estate is also high. As the city is expanding, the potential for real estate companies is also augmenting.
- Tax benefits – The tax advantages provided to businesses in Dubai are well-known, such as no personal income tax, corporate tax, or capital gains tax. This advantage, thus, contributes to the overall productivity of real estate transactions and investments.
- Stable political environment – The stable political and economic environment provides a secure foundation for business operations. Furthermore, the nation’s commitment to infrastructure development and economic diversification reassures the solidity of the real estate market.
- RERA regulations – The RERA has established strict guidelines ensuring transparency, and protecting the rights of buyers and sellers, thereby contributing to a reliable commercial environment. Therefore, all businesses engaged in real estate activities are required to comply with RERA regulations
- Diverse population – Dubai accommodates a diverse population, with a blend of different cultures and nationalities. This diversity demands various types of properties, based on different needs and preferences. Real estate companies can, thus, leverage this diversity to offer a wide range of services.
- Luxury market – The luxury real estate market of Dubai attracts high-net-worth individuals and investors who are looking for premium properties. Hence, businesses specializing in luxury real estate can cater to the rising demand for high-end residential and commercial spaces.
- Innovative infrastructure – Dubai boasts of innovative infrastructure, including remarkable structures and smart city programs. This makes it an attractive destination for real estate investments.
- Quality of life – The city of Dubai has world-class amenities, healthcare, education, and recreational facilities that contribute to a high quality of life. Coupled with a safe and cosmopolitan environment, Dubai presents an ideal location for individuals and families looking for residential properties.
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Licenses required for a real estate business in Dubai
To open a real estate business in Dubai, you need to secure the following licenses:-
- Trade license – Issued by the Department of Economic Development (DED), the trade license is the most critical license required to start any business in Dubai. This license allows them to conduct commercial operations legally in the emirate.
- Real estate brokerage license – A real estate brokerage license from the Dubai Land Department (DLD)is mandatory for a real estate firm in Dubai. It assures that business owners can legally conduct real estate business activities in the UAE.
- RERA certification – The Real Estate Regulatory Agency (RERA) is the governing body that controls the real estate industry in Dubai. Hence, anyone who wants to work as a real estate broker or salesperson in the city needs to be RERA certified. This certificate will validate that you are aptly qualified for this job and duly follow the RERA regulations.
- Ejari registration – The Ejari system in Dubai oversees rental agreements. The landlords and property owners in the Emirates are required to get their tenancy agreements registered with Ejari.
How to open a real estate company in Dubai?
Legal registration of businesses is mandatory everywhere, including in Dubai. So, here’s what you can do to register a real estate business in Dubai:-
- Get an understanding of the real estate landscape – Understand the market dynamics, demand for residential, commercial, and hospitality properties, trends, investment opportunities, and regulatory environment.
- Conduct market research – Conduct thorough market research and feasibility analysis. Assess market demand, competition, target demographics, and potential risks.
- Craft a business plan – Create a well-defined business plan outlining your objectives, strategies, and financial projections.
- Choose an appropriate structure – An appropriate legal structure will play a vital role in the success of your real estate firm, whether you opt for sole ownership, partnership, limited liability company (LLC), or corporation.
- Choose a business name – Your company name must adhere to the naming parameters set by the UAE. Do not forget to consult with the experts at Shuraa to ensure compliance with the naming rules.
- Get RERA certification – Entrepreneurs or investors applying for a real estate license in Dubai need to register for the Dubai Real Estate Institute’s Certified Training for Real Estate Brokers course (DREI). Successful completion of this course is mandatory for the licensing process.
- Draft the MOA – Prepare an MOA that specifies the purpose of the company, lists the economic activities it intends to undertake, and defines the company’s relationship with its members and the general public.
- Apply for the license – There are various licenses required to operate a real estate business in Dubai. Secure these licenses and necessary permits from the relevant authorities to avoid any legal consequences in the future.
Documents required for the setup process
The list of documents required for the real estate business in Dubai is as follows:-
- Initial approval from the DED
- Trade name reservation certificate
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Police Clearance Certificate
- Office lease agreement
- Real estate brokerage license from the Dubai Land Department (DLD)
- Preliminary approval from RERA
Cost of real estate business setup in Dubai
The expenses involved in starting a real estate firm in Dubai include legal fees, registration fees, office space leasing fees, getting required permissions and licenses, employing staff, marketing and advertising charges, and other operational costs. In addition, the size and scope of the company, the location of the office, the number of workers, and the marketing plan can also impact the overall cost.
Conclusion
Whether you specialize in luxury properties, commercial spaces, or affordable housing, Dubai offers mass opportunities, a diverse market, and a business-friendly environment for the success and growth of real estate businesses in the market.
So, take the first step towards your entrepreneurial journey in Dubai today! With the support of experts of Shuraa Business Setup, you can handle the setup procedure with assurance, convenience, and without any legal problems. Contact for a free consultation at +971 44081900 or WhatsApp at +971 507775554 or email at info@shuraa.com.
