The booming real estate market of Dubai offers plenty of opportunities for entrepreneurs looking to step into the thriving economy of the UAE. The iconic skyscrapers, stunning architecture, and luxurious properties, including residential, commercial, and retail spaces attract property investors and buyers from around the world, creating an ideal location for real estate entrepreneurs. However, it is crucial to know how to start a real estate business in Dubai.
This business idea facilitates real estate investors with an advantageous location, first-rate infrastructure, and alluring tax policies, however, there are certain legal requirements they need to abide by. This comprehensive guide on how to start a real estate business in Dubai will take you through all the intricate details of the process, including company registration, licensing, and a deep understanding of Dubai’s real estate market.
Real estate businesses in Dubai
Dubai holds a reputation worldwide for its luxury properties and ambitious development projects. Besides, the steady growth of the market fuelled by increased foreign investment and global events provides a lucrative platform to set up and grow a successful real estate business.
Here are some of the common business activities that you can undertake in this sector:-
- Real estate brokerage – Businesses connect buyers and sellers and earn commissions on transactions.
- Property development – Acquiring land, obtaining permits, and managing construction to create new properties.
- Property management – Handling maintenance, rent collection, and tenant relations.
- Real Estate Investment Trusts (REITs) – Investing in income-generating properties and distributing profits to shareholders.
How to start a real estate business in Dubai: Mandatory licenses required
Different licenses are issued for specific real estate activities that you plan to undertake in Dubai –
Real estate broker license: The Dubai Department of Economy and Tourism issues this license to real estate agents in Dubai who help people buy, sell, or rent properties. To obtain this license, the agents need to be employed by a registered real estate brokerage firm in the Emirate and obtain a residency visa, if they are an expat. Furthermore, they need to complete a mandatory training course conducted by the Dubai Real Estate Institute (DREI) and pass the RERA exam.
Real estate company license: The Real Estate Regulatory Agency (RERA) issus this license through the Department of Economic Development to individuals who want to set up their own real estate brokerage firm in Dubai.
Why start a real estate company in Dubai: The key benefits
A real estate business setup in Dubai comes with several advantages. For instance,
- Booming market – The real estate market of Dubai is continually expanding and is one of the most desirable marketplaces. The growing demand creates several prospects for real estate ventures to prosper.
- Strategic location – Dubai’s advantageous location serves as a global economic hub to launch a Real Estate Company in the UAE and access a large pool of potential clients and collaborators.
- World-class infrastructure – Dubai is considered one of the most technologically refined and modern cities in the world due to its significant investments in the development of its transportation, communication, and utility infrastructure. This facilitates company operations and client access to properties.
- Stable economy – The real estate sector contributes significantly to Dubai’s stable and diverse economy. Besides, the extensive support from the government makes the Emirate an appealing location for real estate enterprises.
- Ease of doing business – The policies placed by the Dubai government ease company operations in the city, which includes simplified licensing processes, a robust legal foundation, and a supportive regulatory atmosphere.
How to start a real estate business in Dubai?
Business registration is mandatory, even for those keen to know how to start a real estate business in Dubai. Here are the steps you need to follow:-
Develop a Business Plan
Creating a solid foundation is vital for a successful real estate business. It includes developing a solid business plan, which must include:
- Your business goals
- Target market
- Marketing strategies
- Financial projections
- Operational structure
Creating a strong business plan will help you assess other competitors in the market and see how you can provide something of unique value.
Choose Your Business Location
Determine whether you want to operate on the Mainland or any Free Zone. Dubai Mainland offers more flexibility whereas Free Zones have specific restrictions but can offer a plethora of benefits compared to other jurisdictions in Dubai.
Decide Legal Structure
Choose an appropriate business structure that will assist in placing the business in the most advantageous position, both in operational and financial terms. For a real estate business, there are primarily two types of business structures – Sole Proprietorship and Limited Liability Company (LLC).
Register a Trading Name
After choosing the company’s legal form or business model, register a trade name to the Department of Economic Development (DED) in Dubai along with all necessary supporting documentation.
Gather Required Documents
Prepare documents as required by the authorities. This may include the following:-
- Application form
- Passport copies and Visa copies of the business owner/manager and all shareholders
- Academic certificates of the manager and partners (Attested)
Register Your Business with DED
Business registration with the Department of Economic Development requires meeting certain legal requirements and regulations, such as –
- Obtain a Good Conduct Certificate from Dubai Police.
- Apply to the DED for preliminary approval.
- Choose a unique and appropriate trade name.
- Fulfill the registration formalities and obtain a trade license.
Get RERA Approval & Obtain Necessary Licenses
Real estate companies in Dubai need to obtain a brokerage license from the Real Estate Regulatory Authority (RERA). However, they need to meet all requirements and submit the necessary documentation.
Complete RERA Training
The Dubai Real Estate Institute (DREI) offers mandatory Certified Training for Real Estate Brokers. To obtain this license, individuals need to pass this course.
Office Setup
Your real estate business would require a physical office space that is convenient for clients and complies with regulatory requirements.
Business Bank Account
To manage your company’s financial transactions, you will require a dedicated bank account.
Employee Visas
If you plan to hire staff from abroad, you will require appropriate visas. To initiate the visa application process, register with additional entities such as the Department of Naturalization and Residency (DNRD) for visas and the Ministry of Labor (MOL) for employing staff.
Additional Considerations
You may also require additional approvals from the Dubai Land Department (DLD) depending on your specific operations.
Launch a Real Estate Company in the UAE: Costs involved
The cost of setting up a real estate business can vary depending on certain factors, such as –
- RERA Registration fee
- DREI training certificate fee
- Visa fees
- Additional approvals
- Company registration fees
- Office space leasing fees
- Marketing and advertising charges
- Other operational costs
Additionally, the size and scope of the company, the location, and the number of workers can affect the cost of starting a real estate firm in Dubai. For a more precise estimate, consult with business setup specialists at Shuraa.
Partner with Shuraa Business Setup!
Dubai’s real estate market offers amazing and profitable opportunities for entrepreneurs. However, the incorporation process can be challenging and complex for newbies. Shuraa Business Setup specializes in helping entrepreneurs with smooth and stress-free incorporation. From obtaining appropriate licenses and visas to acquiring approvals and office spaces, Shuraa will handle all the details so that you can focus on growing your business.
Book a free consultation today with their corporate advisors and start your entrepreneurial journey to Dubai.
