Is Real Estate a good business in Dubai?
Whether you wish to start a real estate brokerage business, a property management company or become a developer, setting up a real estate business in Dubai is one of the most profitable businesses in UAE. Dubai’s real estate market is generating one of the highest returns compare to other popular regions around the world. While the market may have slowed over the past year or two, Dubai real estate is still generating impressive returns.
With the increase number of expatriates, world class infrastructure, breathtaking skylines, trading opportunities and its pro government policies and e-government services Dubai is attracting potential investors to set up real estate business in Dubai.
There are most popular business activities related to Real Estate in Dubai and they are:
- Real Estate Buying & Selling Brokerage – This service allows to provide brokerage services for the buying and selling of property.
- Buying and selling of real estate- This service is available to firms engaged in buying and selling property, including residential and non-residential buildings, for the purpose of resale.
- Real Estate Consultancies- This service allows specialist to provide sound advice to potential buyers as well as developing strategies to achieve their goals and objectives.
- Real Estate Representative Office- This service is available to real estate representative offices established in the Emirate of Dubai by a global company or organization to represent it in the UAE in order to market and promote the property that it owns outside UAE.
- Real Estate Management Supervision Services – This service is available to firms engaged in providing property management services such as contracting with maintenance, cleaning, and security companies; managing the administrative affairs of property and contracting with real estate brokers to rent real estate units.
What are the Steps involved in Setting up Real Estate in Dubai, Mainland?
So, before starting up a real estate business you must consider below important step:
- Understand the Market, conduct market research and a physical inspection and explore the surroundings.
- Decide on your business model whether you want a complete ownership of your business, General Partnership, Joint Venture, Public Shareholding, Private Shareholding, Limited Liability, Professional company.
- Register the trade name for your organisation by submitting the business and trading documents to the Department of Economic Development (DED) in the UAE to get your commercial licence to conduct the operations of your business.
- Qualify yourself for licensing process by taking professional training or course as per the Dubai Real Estate Institute (DREI) and obtain certificate. This is essential to get the permit from the Real Estate Regulatory Agency in Dubai.
- Since the different types of real estate activities require specific kind of licenses check with the RERA’s (Real Estate Regulatory Authority, part of the Dubai Land Department, is a government agency that licenses real estate agents, brokers, and developers and regulates all real estate activities in Dubai) website to apply for the relevant certification in order to get your business approved and authorised by from the Real Estate Regulatory Authority.
- Take an additional approvals from the Department of Naturalisation and Residency Dubai (DNRD) and Ministry of Labour (MOL) to employ foreign employees and sponsor their visas. Dubai Land Department is required for opening a real estate brokerage in Dubai which administers everything concerning real estate in the region. Certificate of Good Conduct from Dubai Police General Headquarters
- Find an advantageous location for business and Set up your physical office to give your business credibility and helps customers to reach out to your anytime.
- Since the real estate business is ever growing it is best to stay aware of the latest property management laws and changes in the market structure.
What are the documents required to register a license for Real-Estate Business in Dubai?
Along with license fees, you must provide these documents to the Dubai Economic Department:
- Completed application form
- Two Passport size pictures
- Passport copy of the owner and the partners or shareholders (if any)
- Copy of emirates ID of the local sponsor (if any)
- Notarised MoA and LSA
- NOC for ex-pat partners
- Valid residence or tourist visa
- Tenancy contract (Ejari)
Once you obtain the license your company needs to be registered with RERA for this you need to submit the below documents:
- DED Licence copy
- Tenancy Contract (Ejari)
- Payment Receipts for RERA Courses
- Location of your business
In addition you need to have the:
- Certificate issued by Dubai Police General Headquarters
- Approval from Land Dubai Land Department
How much does it cost to start a real estate company in Dubai?
The cost of obtaining the real estate licence will depend on many factors based on your location, business activities, company size and other operational costs. However, in most cases, the start-up costs are usually low which starts from approximately AED 30K. This cost may vary depending on the other activities chosen and government fees.
To make it easier, once you have your business plan ready in your hand, you can always take help from the expert business setup consultants in Dubai UAE, who will assist you through the process to obtain a licence for your real estate business, and take care of all the necessary admin tasks leaving you free to concentrate on what you do best.
Infographic on how to start your Real Estate business in mainland Dubai
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