Dubai is known for its booming real estate market, offering plenty of opportunities for entrepreneurs looking to start a real estate business. With its iconic skyline and luxurious properties, Dubai attracts investors and buyers from around the world which makes it an ideal location to establish a real estate business.
The real estate market in Dubai is known for its variety of properties, including residential, commercial, and retail spaces. Property management is a popular option for those looking to start a real estate business in Dubai, as it involves overseeing rental properties on behalf of owners.
This could include tasks such as finding tenants, collecting rent, and maintaining the property. On the other hand, real estate development involves purchasing land and building properties for sale or rent, making it a more hands-on approach to the business.
So, let’s understand the benefits, real estate license, process, and other essential information you need to get started.
Dubai’s 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
Here are some of the business activities you can undertake for your real estate business:
1. Real Estate Brokerage
This is a popular option, where businesses connect buyers and sellers and earn commissions on transactions. To operate legally, you’ll need to obtain a license from the Dubai Land Department (DLD).
2. Property Development
Dubai is a hub for innovative development projects. This sector involves acquiring land, obtaining permits, and managing construction to create new properties.
3. Property Management
Many property owners in Dubai look for professional management companies to handle maintenance, rent collection, and tenant relations.
4. Real Estate Investment Trusts (REITs)
These are companies that invest in income-generating properties and distribute profits to shareholders.Dubai welcomes foreign investment in real estate. However, there are regulations to ensure a smooth process.
Which License is Required to Start a Real Estate Business in Dubai?
To start a Dubai real estate business, there can be different licenses required depending on the specific activities you plan to undertake. This may include:
1. Real Estate Broker License
This is required for anyone who wants to work as a real estate agent, helping people buy, sell, or rent properties. To get this license, you’ll need to:
Be employed by a registered real estate brokerage firm (you cannot be freelance)
- Obtain a residency visa (if you’re an expat)
- Complete a mandatory training course by the Dubai Real Estate Institute (DREI)
- Pass the RERA exam
- Apply for the license through the Dubai Department of Economy and Tourism
2. Real Estate Company License
This is needed if you want to set up your own real estate brokerage firm. The Real Estate Regulatory Agency (RERA) is the governing body for real estate in Dubai, and they issue licenses through the Department of Economic Development.
If you want to manage properties for landlords, you’ll need a separate license for private real estate leasing and managing services.
How to Start a Real Estate Business in Dubai?
Starting a real estate business in UAE or Dubai involves several steps, including:
1. Choose Your Business Location
Decide whether to operate on the Dubai mainland or within a free zone. Each has its own advantages and regulations.
2. Choose a Business Structure
Decide on the type of legal entity for your business, such as a sole proprietorship, partnership, or LLC. Foreign investors typically set up an LLC in Dubai.
3. Trade Name Registration & License
Reserve your desired business name with the Department of Economic Development (DED). Obtain the necessary trade license for real estate brokerage from the DED or the relevant free zone authority.
4. Obtain RERA Registration & Approvals
Register your business with the Real Estate Regulatory Authority (RERA), the regulatory body overseeing real estate activities in Dubai. RERA issues the official real estate brokerage license.
Complete the mandatory Certified Training for Real Estate Brokers program offered by the Dubai Real Estate Institute (DREI). You may also need to obtain final approval from the DLD for your real estate brokerage activities.
5. Office Setup
Secure office space for your Dubai real estate business. Consider factors such as location, size, accessibility, and facilities.
6. Company Bank Account
Open a corporate bank account for your business transactions.
7. Hiring Staff
Hire qualified and licensed real estate agents to work for your firm. Ensure that they are knowledgeable about the local real estate market.
8. Obtaining Visas
As the business owner, you’ll act as the sponsor for your employees’ visas. The specific visa type (employment visa, investor visa) will depend on your and your employees’ roles and circumstances.
What is the Cost of Setting Up a Real Estate Business in Dubai?
The cost of obtaining a real estate license in Dubai generally starts from AED 12,900* but can vary depending on a few factors, such as:
- Registration fee charged by RERA
- Type of business activity
- Cost of obtaining a DREI training certificate
- Visa fees
- Company setup fees
- Additional approvals
Therefore, the exact cost of starting a real estate business in Dubai varies. We recommend getting an expert consultation from Shuraa Business Setup for the most up-to-date cost information.
Benefits of Starting a Real Estate Business in Dubai
Dubai’s real estate market offers a wealth of opportunities for entrepreneurs.
1. 100% Foreign Ownership
Unlike many other places, Dubai allows foreign investors to own 100% of their company for many business activities. This gives you full control over your business decisions and profits.
2. Exemption from Property Taxes
There are currently no property taxes levied on real estate ownership in Dubai. This can be a major advantage for investors and developers.
3. Lifestyle Advantages
Dubai offers a high quality of life with a multicultural environment, tax-free imports of many goods, and year-round sunshine.
4. Thriving Real Estate Market
Dubai’s real estate market is known for its steady growth and high rental yields. This can offer promising returns for investors and developers.
5. Government Support
The Dubai government actively promotes foreign investment and offers streamlined business setup procedures. There are also initiatives and support programs for startups.
Partner with Shuraa Today!
Starting a real estate business in Dubai can be an amazing and profitable opportunity for entrepreneurs. However, starting a business can be complex, which is why seeking expert guidance is essential.
At Shuraa Business Setup, we specialize in helping entrepreneurs every step of the way. From obtaining licenses and approvals to providing office space and visa assistance, we’ve got you covered.
We encourage entrepreneurs to take advantage of our services to make the process smooth and stress-free. With Shuraa Business Setup, you can focus on growing your business while we handle the details. Don’t miss out on the chance to be a part of Dubai’s thriving real estate industry.
Contact Shuraa Business Setup for a Free Consultation today and start your entrepreneurial journey with confidence.