For many years, Dubai’s real estate sector has been rapidly expanding. In addition, new regulations are set to take effect in 2022, allowing more foreign investors to purchase property in the emirate. This means that inquiries about real estate in Dubai are increasing faster than ever, making now an excellent time to start a real estate company in Dubai.
Furthermore, the growing population density of Dubai, particularly the increasing number of expatriates in Dubai each year, combined with pro-business government policies and, not to mention, the robust economy, are enough to entice potential investors to establish a real estate buying and selling brokerage company in Dubai.
Benefits of starting a Real Estate company in Dubai
Dubai’s real estate industry has been steadily growing for many years and is now one of the most appealing property markets in the world. Some of the primary advantages of starting a real estate company in Dubai are as follows:
Impressive returns:
The Dubai property market continues to provide significant returns to investors, with yields of 5% or higher being common.
Transparent regulations:
Dubai has a well-respected and transparent legal system, so you can invest with confidence.
Diverse market:
Dubai’s property market is large and diverse, with buildings in a variety of sectors to invest in, including residential, commercial, student housing, luxury property, hotels, and industrial units.
An open market:
The property market in Dubai is highly competitive and open to all investors, including foreign investors.
How to get RERA approval?
If you want to become a real estate agent or start a real estate business in Dubai, you must first complete certified real estate professional training. The training usually lasts four days and will provide you with a thorough understanding of everything you need to know to legally work as a real estate agent in Dubai. After completing a training course, you must pass an exam administered by Dubai’s Real Estate Regulatory Agency (RERA). You will be able to apply for an agent’s license if you pass the exam.
How much is RERA Permit Cost?
The cost of a RERA permit is determined by your prior education level. The examination costs AED 3,200 if you have a bachelor’s degree. It costs AED 6,300 if you do not have a bachelor’s degree.
You must consider the costs of completing a RERA training course in addition to the fees for taking the exam. These are typically priced between AED 2,500 and AED 3,500.
The RERA fee per activity is AED 5,000 every year and is renewed annually along with the trade license.
Steps to start a Real Estate Company in Dubai
The Department for Economic Development (DED) of Dubai lists numerous steps to take when starting a real estate business in Dubai. When you work with WeServe, we can walk you through the six essential steps listed below:
Step 1: Select the Trade Name of the Company
When you choose a trade name for your company, it should describe your primary business activities.
Step 2: Choose the Jurisdiction
In Dubai, real estate firms can base themselves in one of three economic jurisdictions: the mainland, the free zone, or the offshore. Each of these has its own set of business rules, benefits, and drawbacks. When deciding on your jurisdiction, consider the nature of your business, market accessibility, and office location. WeServe can advise you on the best jurisdiction for your specific situation.
Step 3: Choose the Legal Structure
You’ll also need to decide on your company’s legal structure; different structures are better suited to different types of businesses. The following are some of the most common types of legal structures for real estate firms in Dubai:
- Sole Proprietorship
- Limited liability company (LLC)
- Free Zone Corporation
- Foreign Company Branch
Step 4: Submit all your documents
When applying to open a Dubai real estate business, you must submit the below documents, depending on your structure and location. At WeServe, we can advise you on which documents you require and double-check that they are all correct:
- A copy of your passport
- A copy of your Emirates ID
- Your office space’s certified tenancy contract / Ejari
- RERA approval form
Step 5: Approval for special activities under Real Estate
If your real estate company needs to engage in special activities (for example, real estate construction), you may need permission from other appropriate authorities. WeServe can help you with the specifics.
Step 6: Visa application process
If you (or your employees) are not Dubai citizens, you may need to apply for visas for your employees and family members at the same time you apply for your visa. The steps are as follows:
- Obtaining Entry Permit
- Change Status
- Medial Test
- Emirates ID
Cost of starting a Real Estate Company in Dubai
In Dubai, the cost of establishing a real estate company ranges between AED 15,000 and AED 25,000. (in addition to your RERA license). Costs will vary depending on a variety of factors, such as your location, office startup costs, and whether you choose to base yourself in a Dubai free zone or operate through a mainland or offshore company. In general, startup costs are lower if you are located in a Dubai free zone.
Document Required to Start a Real Estate Company in Dubai
The documents needed to obtain a license may differ depending on the nature of your business. The following are some examples of the most common documents you will be required to present:
How to Expand Your Real Estate Business in Dubai?
Here are some tips that would help for growing your real estate business in Dubai:
Make a Business Plan
A business plan can help you clarify which type of real estate you specialize in, as well as your fees, cash flow requirements, and targets.
Uniform marketing:
Several essential marketing activities that your company must perform regularly include updating online listings, advertising your properties on social media, and hosting promotional events.
Understand the market
It is very important to have a good understanding of the market. Keep examining and learning about places and locations. Explore the area and conduct a physical examination of the places.
Build strong website
To deliver more compelling marketing, you must have a website, learn how to use customer relationship management (CRM) software, and invest in technologies such as virtual reality tours or drones.
Spend time on your leads
Spend time building relationships with prospects to learn more about what they truly want and stay in touch with them.
Be Updated
Dubai’s Real Estate market is expanding with time. It is very important to be updated with the latest trend in the market. Keep an eye on the competitor and what they are offering to their customers, and what marketing strategies they are following.
Working with WeServe
WeSeve has assisted many companies in successfully obtaining business licenses in Dubai and elsewhere. We have assisted many real estate agents, investors, property developers, and other real estate professionals with business setups in Dubai. Our experts understand all requirements (including how to obtain a RERA certificate) and can advise you on all steps required to launch your Dubai real estate company.
Furthermore, we can provide you with a variety of other services that will help you run your Dubai real estate company more successfully.
Contact WeServe today to start a winning business in Dubai’s ever-changing real estate market.
