7 June, 2024

How to Start & Setup a Real Estate Company in Dubai

start real estate company in dubai

Demand for Real Estate in Dubai is so extreme, property in the emirate consistently receives higher returns than prime property hot spots like New York and London. It is also the area with highest returns on real estate pitted against other prime localities world-wide. The eGovernment services further support the whole procedure almost efficiently online- Navigating payments, procuring visas, offshoring certifications!

This makes Real Estate in Dubai an appealing bet for international investors. And where there is a market there is business. If you still have the intention of putting your hard-earned money in a Real Estate for investment, whether doing it by yourself or going to start a Real Estate management or a real estate brokerage in Dubai is the perfect place for you to do such great things.

And when you start a business in UAE with RadiantBiz assistance, you can be ready to go in next to no time. Finding the right business setup in Dubai is a piece of cake for our team, as we are skilled in business setup in Dubai including licensing, visas and many more.

 

Overview of Real Estate Business in Dubai

Being one of the top devising cities of the Middle East, Dubai is one of the richest cities in the Middle East. Basically, it is the place where anyone could find five-star accommodations, malls, and leisure centers. The city is also home to dozens of large multinationals as well as smaller companies. It is Located in the center and has a good transportation system, its Real Estate market is also in high demand. This makes it well-suited for many entrepreneurs who wish to start a real estate company in Dubai.

Dubai Real Estate Market

The Dubai real estate market is a booming sector with a reputation for luxury properties and ambitious development projects. The market is currently experiencing steady growth, driven by factors like increased foreign investment and upcoming events.

Types of Real Estate Businesses in Dubai

Potential business activities one may explore for his real estate venture include:

Real Estate Brokerage

This is an opportunity for companies to facilitate transactions between buyers and sellers and generate revenue from sales. To operate legally, one must obtain a license from the Dubai Land Department (DLD). Real estate brokerage can include residential, commercial, and industrial properties, providing a wide range of opportunities for growth and specialization.

Property Development

Dubai is renowned for its ambitious construction projects. This sector includes acquiring land, obtaining necessary permits, and overseeing the construction process to develop new properties. Successful property development requires a keen understanding of market trends, a network of reliable contractors, and efficient project management skills. Developers can focus on residential, commercial, or mixed-use properties, each offering unique opportunities and challenges.

Property Management

Many property owners in Dubai seek management companies to handle the day-to-day operations of their properties. This includes maintenance, rent collection, and tenant interactions. Effective property management ensures high occupancy rates, tenant satisfaction, and property value appreciation. Companies can specialize in managing different types of properties, from high-end residential complexes to large commercial buildings.

Real Estate Investment Trusts (REITs)

REITs are firms that invest in income-generating properties and share profits with investors. They offer a way for individuals to invest in large-scale real estate projects without directly buying property. Dubai encourages real estate investment but has regulations in place to ensure transparency and protect investors. Establishing a REIT involves acquiring diverse properties, managing them efficiently, and adhering to strict financial reporting standards.

Real Estate Marketing and Advertising

Specializing in marketing and advertising for real estate can be a lucrative venture. This includes creating marketing strategies, managing online and offline campaigns, and utilizing social media platforms to attract potential buyers and tenants. Companies can offer services like virtual tours, professional photography, and targeted advertising to help properties stand out in a competitive market.

Real Estate Consultancy

Providing expert advice to investors, developers, and property owners can be a valuable service. Real estate consultants offer market analysis, investment strategies, and project feasibility studies. This role requires in-depth knowledge of the local market, regulatory environment, and emerging trends. Consultants can help clients make informed decisions and maximize their returns on investment.

Short-term Rental Management

With the rise of platforms like Airbnb, managing short-term rentals has become a significant business opportunity. This involves handling bookings, guest communications, and property maintenance. Short-term rental management companies can optimize occupancy rates and provide a hassle-free experience for property owners looking to capitalize on the tourism industry in Dubai.

Real Estate Technology Solutions

Developing and implementing technology solutions for the real estate industry can address various needs such as property management software, virtual reality tours, and online marketplaces. Proptech (property technology) companies can innovate how real estate transactions are conducted, improving efficiency and user experience for both professionals and consumers.

how to start a real estate business in dubai

How to start a real estate business in Dubai

Launching a real estate business in Dubai involves several critical steps. Here is a detailed guide to help you navigate this process effectively:

1. Deciding Business Location

Choosing the right location for your business is crucial. Factors to consider include the nature of your business, market accessibility, and specific benefits of the location.

Dubai offers three primary economic zones for real estate firms: mainland, free zone, and offshore. Each has its own set of regulations, advantages, and disadvantages. for example,  some have the option for fewer regulations, exemption from personal income tax, import duties, currency restrictions, and excessive regulations.

2. Choosing Business Activity

Next, you need to select your business activity in Dubai. Real estate firms can engage in various activities, including:

  • Professional Company
  • Sole Proprietorship
  • LLC (Limited Liability Company)
  • Partnership en-Commendam
  • Joint Venture
  • Private Shareholding
  • General Partnership
  • Public Shareholding

Clearly outlining your business activities is essential as it determines the type of license you need. Whether you plan to run a real estate brokerage, open a property consultancy, or engage in other related activities, these must be specified in your license application. You can include multiple business activities and add more later if needed.

3. Choosing a Company Name

The UAE has specific naming conventions you must follow. The name should avoid blasphemous and offensive language and should not include names of well-known organizations. These rules are straightforward and will be covered in your initial consultation.

4. Getting RERA Certification

To qualify for a real estate license, you must complete the Dubai Real Estate Institute’s Certified Training for Real Estate Brokers course (DREI) and pass an exam. After passing, obtain a Good Conduct Certificate from Dubai Police and contact the Real Estate Regulatory Agency (RERA) for your broker ID. The RERA broker ID is mandatory and must be renewed annually.

Documents Required for RERA Registration:

  • Application Form
  • DED License Copy
  • Tenancy Contract (Ejari)
  • Payment Receipt for RERA Courses
  • Location of Your Business

5. Memorandum of Association

A Memorandum of Association (MOA) is a legal document required during company incorporation. It outlines the company’s objectives and the economic activities it plans to undertake. The MOA must be typed in accordance with the protocols of the Dubai Economy and Tourism Department and UAE commercial law, and it needs to be notarized.

6. Applying for a Trade License

After completing the initial stages, you can apply for your trade license. In free zones submitting various documents and obtaining a professional services license for property management or brokerage services.

You must also register your company with the Department of Naturalisation and Residency Dubai (DNRD) and the Ministry of Labour (MOL) to hire foreign employees and sponsor their visas. This process includes undergoing a fitness test, blood test, and chest x-ray. You can also sponsor visas for dependents and domestic staff.

Documents Required:

  • Business and shareholder details
  • Proof of address
  • Identification documents

7. Getting Approval from Dubai Land Department

The Dubai Land Department (DLD) oversees real estate activities in Dubai. Before starting operations, you must obtain approval from the DLD. This includes setting up a corporate bank account, which RadiantBiz can assist with, by advising on the best financial institution for your needs.

 

What Licenses Are Required to Start a Real Estate Business in Dubai?

Starting a real estate company in Dubai requires obtaining several key licenses and permissions from the authorities. Here’s a comprehensive guide on the licenses you need to secure:

1. Trade License

The first and most crucial license you need to launch any business in Dubai is a trade license. Issued by the Department of Economic Development (DED) in Dubai, this license permits you to legally carry out commercial operations in the emirate. It is the foundation of your business, allowing you to operate within the regulatory framework of Dubai.

2. Real Estate Brokerage License

A specialized real estate brokerage license is mandatory for all real estate firms and is obtained from the Dubai Land Department (DLD). This license authorizes you to engage in real estate transactions within the UAE, ensuring your operations comply with local laws and regulations.

3. RERA Certification

To qualify for the real estate brokerage license, you or your employees acting as real estate agents must complete a mandatory training course offered by the Dubai Real Estate Institute (DREI). After completing the course, you must pass the Real Estate Regulatory Agency (RERA) exam. RERA oversees Dubai’s real estate sector, ensuring agents adhere to industry standards and practices.

Documents Required for RERA Certification:

  • Completed application form
  • DED license copy
  • Tenancy contract (Ejari)
  • Payment receipt for RERA courses
  • Business location details

4. Ejari Registration

The Ejari system regulates rental agreements in Dubai, ensuring all rental contracts are standardized and legally binding. If your firm plans to manage rental properties, registering with Ejari is necessary for both landlords and property managers. Ejari registration provides legal protection and ensures transparency in rental transactions.

cost of real estate license in dubai

What is The cost of Real Estate License in Dubai?

Starting a real estate business in Dubai involves several costs and steps. Here’s a detailed breakdown to help you understand the financial requirements:

Licensing Costs

Real Estate Brokerage License for an LLC

The cost for obtaining a real estate brokerage license for a Limited Liability Company (LLC) generally starts around AED 12,900. This is a crucial step in legally operating a real estate business in Dubai.

RERA Training and Certification

Before you can apply for a brokerage license, you must complete RERA training. The Real Estate Regulatory Agency (RERA) charges AED 5,020 per activity for this certification. Having a RERA training certificate is mandatory to proceed with the application for a real estate brokerage license.

Initial Setup Costs

The approximate cost to open a real estate company in Dubai starts from AED 21,000. This estimate includes initial licensing and certification fees but does not cover all expenses involved in the setup process.

Additional Costs

Starting a real estate firm involves various other costs:

  • Legal Fees: Covering the costs of legal advice and services for setting up the business structure.
  • Registration Fees: Fees associated with registering the company with relevant authorities.
  • Office Space Leasing Fees: Costs of leasing office space in a suitable location.
  • Permissions and Licenses: Obtaining necessary permissions and additional licenses as required.
  • Employing Staff: Salaries and benefits for hiring qualified staff.
  • Marketing and Advertising Charges: Costs for promoting your business through various channels.
  • Operational Costs: Ongoing expenses such as utilities, office supplies, and other overheads.

Factors Influencing Costs

The precise cost of starting a real estate firm in Dubai can vary based on several factors:

  • Size and Scope of the Company: Larger firms with broader services will incur higher costs.
  • Location of the Office: Premium locations may involve higher leasing fees.
  • Number of Employees: More staff will increase payroll and associated costs.
  • Marketing Plan: Extensive marketing campaigns will require a larger budget.

 

Start your Real Estate Business with RadiantBiz

Dubai is an ideal place to establish a real estate firm due to its thriving property market, favorable tax laws, prime location, first-rate infrastructure, stable economy, and ease of doing business. These factors collectively make Dubai an excellent hub for real estate companies looking to expand their operations and boost their revenues. The city’s strategic location at the crossroads of Europe, Asia, and Africa provides unparalleled connectivity and access to a vast market, while its advanced infrastructure supports efficient business operations. Additionally, Dubai’s appealing tax policies, including the absence of personal income tax, further enhance its attractiveness for business setup.

However, launching a real estate company in Dubai is not without challenges. It requires a thorough understanding of the local laws, regulations, and licensing standards. Securing the necessary licenses and permits can be a time-consuming and costly process. Prospective business owners must navigate a complex legal landscape, including obtaining a trade license, a real estate brokerage license, RERA certification, and Ejari registration for managing rental agreements.

Despite these challenges, running a prosperous real estate business in Dubai is achievable by adhering to the regulatory requirements and securing the required licenses. Consulting a qualified advisor is crucial in this process. They can guide you through the intricacies of the setup procedure, ensuring compliance with all legal requirements and helping to avoid potential legal issues. With the right approach and expert guidance, you can successfully establish and grow a real estate firm in Dubai’s dynamic market, leveraging the city’s many advantages to build a thriving business.

 

FAQ : Start Real Estate Company in Dubai : 

 

How much does it cost to open a real estate company in Dubai?

Setting up a real estate brokerage in Dubai involves various costs. The Real Estate Regulatory Agency (RERA) charges approximately AED 5,020 per activity, and you need to obtain a RERA training certificate. For a Limited Liability Company (LLC), the cost of the real estate license in Dubai is roughly AED 12,950. In total, the initial cost to start a real estate company in Dubai begins at around AED 21,000.

How to start an estate agency in Dubai?

Here are the steps to start a real estate business in Dubai:

  • Decide on Business Location: Choose between mainland, free zone, or offshore locations based on your business needs.
  • Choose Business Activity: Determine the specific real estate services you will offer.
  • Choose Company Name: Select a name that complies with UAE naming conventions.
  • Get RERA Certification: Complete the mandatory training course and pass the RERA exam.
  • Prepare a Memorandum of Association (MOA): Outline the company’s purpose and activities.
  • Apply for a Trade License: Submit your application to the Department of Economic Development (DED).
  • Obtain Approval from the Dubai Land Department (DLD): Secure the necessary approvals to operate legally.

Is real estate profitable in Dubai?

Dubai real estate market has a strong track record of providing stable and high returns on investment. With an average annual return of 5% to 8.4%, it compares favorably with other major global cities, making it a profitable venture.

How much does a RERA license cost in the UAE?

The cost of a RERA license in Dubai varies:

  • AED 6,300 for applicants without a bachelor’s degree.
  • AED 15,750 for applicants with no educational qualifications.

What is the minimum investment in Dubai real estate?

Investors can purchase properties in Freehold Zones, which are designated areas where foreigners are allowed to buy real estate. The minimum investment amount is AED 2,000,000 (approximately $545,000). Investors can also take out a mortgage from a UAE bank with a 20% down payment.

How to start a small real estate business in Dubai?

Here is the step-by-step process to start a small real estate business in Dubai:

  • Craft a Business Plan: Develop a comprehensive business plan outlining your objectives and strategies.
  • Choose Your Business Location: Select the most suitable location for your business.
  • Decide on Legal Structure: Determine the legal structure of your business, such as LLC or sole proprietorship.
  • Register a Trading Name: Choose and register a trading name that complies with UAE regulations.
  • Gather Required Documents: Prepare all necessary documents for business registration.
  • Register Your Business with DED: Submit your application to the Department of Economic Development.
  • Get RERA Approval & Obtain Necessary Licenses: Complete the RERA certification process and secure the required licenses.

How long does it take to get a real estate license in Dubai?

The Economic Department typically issues a real estate agent license within two to three days of application. Additionally, you will receive a broker card. The real estate agent license in Dubai is valid for one year and must be renewed a month before the expiry date.

How much does it cost to start real estate in Dubai?

In summary, opening and operating a profitable, licensed real estate brokerage in Dubai costs upwards of AED 1 million per year. This includes:

  • Licensing and professional fees: AED 30,000+
  • Office space and furnishings: AED 100,000+
  • Software, hardware, and tools: AED 100,000+

For more precise costs and to ensure compliance with the latest regulations, consult with business setup specialists in Dubai. They can guide you through the specific requirements and fees applicable to your business plan.