Dubai is the hub of real estate, and when we hear the word “Dubai,” the first thing that comes to mind is skyscrapers, high-rise buildings, and luxury penthouses. People from around the globe are buying properties in Dubai, which has led to the real estate business experiencing an increase of 18–34% in 2024. Real estate is deemed as one of the most profitable businesses one can start in Dubai in 2024. But the question is how to start a real estate business in Dubai in 2024? If you are looking for a guide, this blog is for you.
What Is a Real Estate Business?
Any property that falls under the category of buildings or land is considered real estate. A real estate business involves buying and selling lands and properties in an area and earning profit through them.
What Are the Prerequisites for Starting a Real Estate Business in Dubai?
The real estate business is quite simple and straight-forward in Dubai. Here are a few formalities that should be fulfilled:
1. Choosing a jurisdiction for your business
The first step is choosing a jurisdiction where you aim to buy or sell properties. It can be either on the mainland, in a free zone, or offshore (with limited activities such as Real estate activities with own or leased property, and real estate activities on a fee or contract basis). The location you choose for your business is based on many factors, such as:
- Cost of the property
- Popularity
- Type of property Area
2. Choosing the structure of your real estate business
There are many different types of property-related businesses. You need to lay out the business’s structure to proceed. This will provide a clear idea of the kind of license required. The license must specify whether you intend to operate a real estate brokerage, start a property consulting service, or engage in any other connected activity.
The license type selected must fit your business’s requirements and objectives. If you declare real estate brokerage as a commercial activity, for instance, you can lawfully represent a building’s seller, rent a building, oversee buildings for owners, and provide advice on building sales and rentals.
Below are the legal structures to choose from to set up a real estate company in Dubai:
- LLC (Limited Liability Company)
- Public Joint Stock Company
- Private Joint Stock Company
- Sole proprietorship
3. Choose a name and logo for your company
After the location and structure of the business has been decided, the next step is choosing a brand identity, which is the name and logo of the brand. A tagline and a mission statement for the company can also be decided during this stage.
There is a very specific name convention in the United Arab Emirates (UAE) that must be followed. Don’t worry, though; they are all simple and mostly common. All you need to do is refrain from using the names of well-known businesses and offensive or unpleasant words. Other than that, you are good to go.
4. Get the necessary licenses
To create a real estate company in Dubai, it is often required to obtain some licenses and approvals from the relevant authorities. The licenses listed below are required:
Trade License: A trade license is the first and most important license needed to start a business in Dubai. It is granted by Dubai Economy and Tourism (DET) and enables a business owner to conduct business legally within the emirate.
Brokerage License for Real Estate: To operate a real estate company in Dubai, it is required to obtain a real estate brokerage license from the Dubai Land Department (DLD). Therefore, without this license, which is necessary for all real estate brokerage companies, it is not permitted to legally conduct any real estate business in Dubai and the UAE.
Commercial License: Having a commercial business license is essential if you are looking for another person to purchase or sell real estate on your behalf.
Ejari License: Rental agreements are managed by the Ejari system in Dubai. All property owners and landlords must specifically register their rental agreements with Ejari.
Certification for RERA: It is essential to enrol in the Dubai Real Estate Institute’s (DREI’s) Certified Training for Real Estate Brokers course to be eligible for the license. This certification is required to issue licenses. After completing the course, one should pass an exam to qualify as an authorised real estate agent in Dubai. Also, it will be required to get a good character certificate from Dubai Police.
Next, to get the broker ID, get in touch with RERA. It is possible to legally start working as a real estate agent in Dubai as soon as the broker ID is issued. Since every emirate in Dubai has a real estate licensing authority, RERA broker IDs are mandatory. It is crucial to keep in mind that the license needs to be renewed every year.
Documents needed to register under RERA
Below are the documents required to register under RERA:
- Application form
- Copy of DET license
- Tenancy agreement (Ejari)
- Receipt for payment of RERA education
- Office address
Memorandum of Association (MoA): Companies in Dubai and the UAE are required by the UAE Commercial Companies Law to incorporate an object clause in their Memorandum of Association. The section explains the specific purpose of the company’s creation and enumerates the business ventures it intends to carry out following incorporation. A company’s actions may be voidable for operating outside of its authority if they exceed the scope of activities specified in the object clause. The business can potentially face fines from the government and lawsuits from outside parties.
How Much Does It Cost to Start a Real Estate Business in Dubai?
The costs included to set up a real estate company in Dubai mostly include registration fees, office space rental fees, hiring staff, obtaining the necessary permits and licenses, marketing and advertising expenses, and other running costs.
It is important to keep in mind that launching a real estate company in Dubai requires a thorough understanding of the local real estate market and any related laws and regulations.
What Are Some Benefits of Starting a Real Estate Business in Dubai?
The real estate market ion Dubai is well-known for two main reasons; the first being the luxurious lifestyle in Dubai, and the other is the promising future. Below are some of the other benefits that will interest you:
Premium site: It is easy to access the city’s key financial and business centres by staying in one of Dubai’s most sought-after commercial sites.
Simple to start: Enjoy a seamless registration process, with priority help from government platforms, and a wide range of support services suited to your specific business requirements.
An excellent location to work and live: Seize the chance to make a home and a career.
0% income tax: Finally, the most attractive benefit of starting a real estate business in Dubai is the 0% tax on personal income.
License Categories for Real Estate Business Activities
- Mortgage consultation activity
- Real estate consultation activity
- Real estate development activity
- Brokerage for sale and purchase of real estate activity
- Brokerage for renting real estate activity
- Real estate registrar activity
- Real estate services registrar activity
- Real estate promotion registrar activity
- Real estate public auctions organization activity
- Real estate public exhibitions organization activity
- Owners’ associations administrative supervision services activity
- Real estate administrative supervision services activity
- Real estate evaluation services activity
- Real estate inspection services activity
- Real estate survey services activity
- Private real estate leasing and managing services activity
- Real estate leasing and managing services for third party activity
- Land and real estate purchasing and selling activity
- Real estate representation office activity
- Real estate mortgage broker activity
GateStone Group Simplifies the Real Estate Startup Process
The UAE is the centre of global business and prosperity. This is your opportunity to make a difference and get your brand known worldwide. Gatestone Group can assist you at any point during your real estate journey and complete your company formation process from start to finish swiftly and efficiently.
We have the most skilled group of professionals and knowledgeable advisors for a real estate business setup. Contact us via email at [email protected]. Or schedule a brief, complimentary consultation by calling 971 52 410 0849 or +971 4 450 1023.
FAQs
By the end of 2024, there will be 3.5 million people living in Dubai, out of which majority will be foreigners. Due to the increased demand for homes bought by this rising population, the real estate industry is profitable in the present and will be in the future as well.
Yes, in Dubai, foreigners can become real estate agents after fulfilling additional requirements as stated in the blog. To work as a real estate agent in Dubai, foreign nationals need to apply for a residency visa. Gatestone Group can assist you in applying for a residency visa and assist in company establishment process.
