How to start a Real Estate Business in Dubai: Dubai, with its advantageous location, first-rate infrastructure, and alluring tax policies, has become a popular destination for international real estate investors.

If you are considering launching a real estate business in Dubai, it is crucial to understand the legal, regulatory, and licensing procedures involved.

This comprehensive guide will walk you through the licenses required, the cost of setting up a real estate business in Dubai, the benefits of starting a real estate business in Dubai, and the step-by-step process to establish your company.

Licenses Required to Start a Real Estate Business in Dubai

Before launching a real estate firm in Dubai, you must obtain several licenses and permissions from the necessary authorities. Here are the key licenses you need:

1. Trade License

The first and most crucial license you require to launch any business in Dubai is a trade license. This license, issued by the Department of Economic Development (DED) of Dubai, allows you to lawfully carry out commercial operations in the emirate.

2. Real Estate Brokerage License

To run a real estate firm in Dubai, you must obtain a real estate brokerage license from the Dubai Land Department (DLD). This license is a requirement for all real estate brokerage firms, and without it, you cannot legally engage in any real estate business in the UAE.

3. Commercial License

If you plan to have someone else buy or sell property on your behalf, a commercial license is necessary.

4. Ejari Registration

Dubai has a system called Ejari that governs rental agreements. It is mandatory for all landlords and property owners to register their tenancy agreements with Ejari.

5. RERA Certification

In Dubai, the real estate industry is governed by the Real Estate Regulatory Agency (RERA). Therefore, all real estate brokers and salespeople must have RERA accreditation.

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Cost of Setting up a Real Estate Business in Dubai

Launching a real estate firm in Dubai involves various costs, including legal fees, registration fees, office space leasing fees, licenses and permissions, employee salaries, marketing and advertising charges, and other operational expenses.

The total cost of starting a real estate business in Dubai depends on factors such as the size and scope of the company, location of the office, number of employees, and marketing plan.

For example, obtaining a RERA training certificate costs around AED 5,020 per activity. The license for a Limited Liability Company (LLC) costs about AED 12,950.

In general, starting a real estate business in Dubai is estimated to cost at least AED 21,000 overall. It is crucial to fully comprehend the local market and relevant laws and regulations before beginning operations.

Benefits of Starting a Real Estate Business in Dubai

Starting a real estate business in Dubai offers several advantages. Here are five key benefits:

1. Booming Real Estate Market

Dubai’s real estate market is highly desirable for investors and continuously expanding. With the rising demand for real estate in Dubai, there are numerous opportunities for real estate companies to thrive and succeed.

2. Strategic Location

Dubai’s advantageous location between Europe, Asia, and Africa positions it as an important worldwide economic hub. This means that real estate companies in Dubai have easy access to a vast pool of potential clients and collaborators, enhancing business opportunities.

3. World-Class Infrastructure

Dubai has invested significantly in developing its transportation, communication, and utility infrastructure. As a result, it has become one of the most technologically advanced and modern cities globally.

This infrastructure supports the real estate sector by facilitating company operations and improving client access to properties.

4. Stable Economy

Dubai’s stable and diverse economy places a strong emphasis on the real estate sector. The government has taken measures to ensure the real estate market remains stable and transparent, making Dubai an attractive location for real estate businesses.

5. Ease of Doing Business

The Dubai government has implemented various policies to ease business operations in the city. This includes simplified licensing processes, a solid legal foundation, and a supportive regulatory environment.

These factors contribute to the ease of doing business in Dubai and create a favorable environment for real estate enterprises.

How to Set up a Real Estate Company in Dubai: Step-by-Step Guide

Setting up a real estate company in Dubai requires a comprehensive understanding of the applicable laws, regulations, and licensing standards. To help you navigate the process, here is a step-by-step guide:

1. Choose the Legal Structure

Before launching your real estate company, determine the appropriate legal structure. The two primary options for real estate brokerage businesses in Dubai are sole proprietorship and Limited Liability Company (LLC).

2. Register the Trading Name

Submit an application to the Department of Economic Development (DED) in Dubai, along with the necessary supporting documents, to register your company’s trading name.

3. Obtain Preliminary Approval

Submit the required application form and documents, such as passport copies, visa copies, and educational certificates, to obtain the preliminary approval receipt.

4. Obtain RERA Approval

Enroll in the Certified Training for Real Estate Brokers offered by the Dubai Real Estate Institute (DREI) and successfully complete the program. Afterward, you must pass the Real Estate Regulatory Agency (RERA) test.

5. Prepare the Memorandum of Association (MoA)

Depending on the legal structure of your company, complete and sign the MoA, which will require notarization and legalization by the court.

6. Secure Office Space

Find suitable premises or office space for your business. If you are renting, make tenancy arrangements (Ejari) with the relevant parties.

7. Apply for the License

Apply for the Dubai real estate trade license that will allow you to operate your firm.

8. Register with RERA

After receiving the license, register your business with RERA by completing the necessary paperwork, including the application form, DED license copy, tenancy contract (Ejari), payment receipt for RERA courses, and the location of your business.

9. Register with the Ministry of Labour (MOL) and Department of Naturalization and Residency Dubai (DNRD)

To hire foreign workers and sponsor their visas, register your real estate brokerage firm with the Ministry of Labour (MOL) and Department of Naturalization and Residency Dubai (DNRD).

10. Obtain Approval from the Dubai Land Department

Before opening a real estate brokerage in Dubai, you must obtain approval from the Dubai Land Department, the governmental entity overseeing real estate matters in the area.

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Conclusion

Launching a real estate business in Dubai offers significant opportunities for growth and success. The booming real estate market, strategic location, world-class infrastructure, stable economy, and ease of doing business make Dubai an ideal location for real estate companies.

By following the necessary procedures, obtaining the required licenses, and fully understanding the local market, you can establish a thriving real estate business in Dubai.

To ensure a smooth process and avoid legal issues, it is advisable to consult a qualified advisor throughout the establishment of your real estate company.

For further assistance and guidance, you can contact us at +971 58 586 5477 (WhatsApp / Call) or email us at info@recorporate.net and book free business consultation with us.