Dubai is famous for its high-rise buildings, impressive architecture, and strong real estate market. Its strategic location and attractive tax policies have become a preferred destination for global real estate investors. For the real estate business in Dubai, entrepreneurs need to get a real estate brokerage license from the Dubai Land Department to engage in activities such as buying, selling, renting, or managing properties for clients.
In this article, we explain the step-by-step process of starting a real estate business and the details of required licenses in Dubai.
Step By Step Process To Start Real Estate Business:
Registering a business is a legal requirement across the world, including Dubai. You have two options to start a real estate business in Dubai: set up your real estate company in free trade zones or the Dubai mainland.
The following steps will help you to start a real estate business in Dubai:
1. Design a Business Plan
The first step is to design a business plan for your real estate business as it defines your company’s objectives, target audience, marketing approach, financial forecasts, and organizational framework. For that purpose, you can perform a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), which assists you in identifying your competitive edge.
2. Choose Your Business Location
Choose between operating within Dubai mainland, which provides greater flexibility, or opting for a free zone, which, despite potential restrictions, offers tax advantages and a simplified registration process.
3. Select a Legal Structure
Select an appropriate business structure before starting your real estate brokerage firm. This decision will optimize your operational and financial advantages.
To engage in real estate brokerage in Dubai, you can register under two primary business structures:
- Sole proprietorship
- Limited Liability Company (LLC)
4. Register a Trade Name
After choosing your company’s legal structure, you need to register a trade name for your real estate business. For that purpose, you must apply to the Department of Economic Development (DED) in Dubai. Along with the application, submit all necessary supporting documents to register your trade name
5. Collect Required Documents
At this step, you prepare the required documents according to the recommendation of authorities, which may include the following:
- Complete application form
- Copies of passports for the owner/manager and all shareholders
- Copies of visas for all shareholders
- Attested high school or university degree certificates for the partners and manager.
6. Register Your Business With DED
To officially register your real estate business with the DED in Dubai, you will need to select a trade name, secure the required approvals, and complete the registration forms.
7. Obtain a License From RERA
Real estate companies in Dubai need to obtain a real estate brokerage license from the RERA. Make sure you meet all the requirements and provide the necessary documentation to secure your license.
8. Complete DREI Training
You need to complete the obligatory Certified Training for Real Estate Brokers program organized by the Dubai Real Estate Institute (DREI). After this training, you need to pass the RERA exam. Successfully completing and passing the exam is necessary for obtaining your real estate license.
9. Set up a Physical Office Space
You need to set up a physical office space for your real estate business in Dubai. For that purpose, you need to choose a location that is accessible for your clients and meets all regulatory standards.
10. Open a Business Bank Account
For setting up a real estate company in Dubai, you need to open a business bank account to handle your company’s financial transactions and secure your real estate investments.
11. Visas For Hiring Employees
If you decide to employ staff who require visas, start the visa application process. You need to register with the Department of Naturalization and Residency (DNRD) and the Ministry of Labor (MOL) to apply for visas for your hiring employees.
12. Other Important Approvals
You also need to get approval from the Dubai Land Department (DLD), depending on your business activities in the real estate sector of Dubai.
Types of Licenses Required To Start Real Estate Business In Dubai:
The following are the required licenses and permissions that are mandatory for setting up a real estate business in Dubai:
1. Trade License
The trade license is mandatory for all types of business in Dubai. The license is issued by the Department of Economic Development (DED). This license allows you to conduct commercial activities legally in Dubai and the UAE.
2. Real Estate Brokerage License
Dubai Land Department (DLD) issues the Real Estate Brokerage License. This license is necessary for all real estate firms. It authorizes you to participate in real estate transactions within the UAE.
3. RERA Certification
To obtain a real estate license, you (or your employees who act as real estate agents) must complete a mandatory training course from the Dubai Real Estate Institute (DREI) and pass the Real Estate Regulatory Agency (RERA) exam. The agency oversees the real estate sector in Dubai.
4. Ejari Registration
Ejari registration is necessary to manage rental properties. The system regulates rental agreements in Dubai. This registration is mandatory for both landlords and property managers.
Benefits of Starting a Real Estate Business in Dubai:
Here are some key benefits of starting a real estate business in Dubai:
1. Growing Real Estate Market
The real estate market in Dubai is very popular worldwide and keeps growing. With more vested interests of people in the real estate sector of Dubai, there are bright chances for real estate companies to be successful.
2. Strategic Location
Dubai is an important global economic hub because of its strategic location, which bridges Europe, Asia, and Africa. The attractive location confirms that real estate companies in Dubai have easy access to a vast network of potential clients and partners.
3. Advanced Infrastructure
Dubai has greatly invested in improving its transportation, communication, and utility infrastructure. Therefore, Dubai has emerged as one of the world’s most advanced and modern cities. This strong infrastructure helps the real estate sector by making business operations smooth and improving how easily clients can access properties.
4. Stable Economy
Dubai has a stable and growing economy, and the real estate sector plays a significant role in its stability and diversification. Therefore, the government has implemented measures to improve the real estate market, which provides an opportunity for the real estate business to grow in Dubai.
5. Ease of Doing Business
The Dubai government has implemented various policies to ease business in the city. These initiatives include simplified licensing procedures, a fast legal framework, and a supportive regulatory environment.
How Can We Help You?
Dubai is an ideal place to start a real estate business due to its vibrant market, favorable tax rules, strategic location, and business-friendly atmosphere. Setting up involves understanding local laws and obtaining licenses, which can be difficult and costly without expert guidance.
Now Consultant, a leading business setup firm, helps you to get to start a real estate business in Dubai. Our business setup experts choose the most suitable type of license for your real estate investment by fulfilling the requirements and following the regulations of relevant authorities in Dubai.
FAQs:
How Much Does It Cost To Start a Real Estate Business In Dubai?
Starting a real estate business in Dubai typically requires an LLC license, which costs approximately AED 12,950. Overall, the initial costs are estimated to be at least AED 21,000. The exact amount can vary depending on your business requirements and investments.
What Is The Minimum Investment Required To Start a Real Estate Business In Dubai?
To start a business in Dubai, you generally need at least AED 300,000 (about $82,000) as minimum capital, as required by the Dubai Department of Economic Development (DED). The exact amount can vary depending on your business requirements and investments.
Can Foreigners Start a Real Estate Business In Dubai?
Yes, foreigners can now fully own real estate brokerage businesses in Dubai, as the government has removed the previous requirement of needing local Emirati partners.
How Can I Market My Real Estate Business In Dubai?
You can market your real estate business in Dubai through social media platforms or with the help of websites and Google Ads. You can also market your business by physical means with the help of banners and other means
