Are you considering investing and wondering how to start a real estate business in Dubai? Here is your ultimate and inclusive guide.
The real estate market in Dubai is full of opportunities, which attracts many investors. If you’re thinking of having your own real estate business in Dubai, then visibility and awareness are a must for a robust and solid plan.
That’s why we’re bringing you this inclusive and detailed guide from experts in the field about how to start your real estate business in Dubai. It will help you in each step so you won’t feel overwhelmed or lost.
- How to set up a real estate company in Dubai
- Eligibility Conditions
- Organizations Responsible for Licesning Real Estate Companies
- Legal Requirements
- Licences Required
- DLD Requirements for Each Type of Business
- Estimated Budget
- Options for the Office Location
- Are the Free Zones a Better Option?
- Legal Considerations for Setting Up an Office Space
- Benefits of Starting a Real Estate Business in Dubai
1. How Can You Start Your Real Estate Business in Dubai Step by Step?
Step 1: Develop a Comprehensive Business Plan
To kick off your journey, there are some things you must consider to create a solid foundation for a successful real estate business. Like any other business you wish to build, you must develop a solid business plan.
This plan should cover the following key points:
- Your business goals: Clearly outline your business objectives, such as specializing in residential, commercial, or industrial real estate or providing specific services like property management or brokerage.
- Target market: Determine the specific demographic or niche you want to serve.
- A marketing strategy: Plan how you will attract clients and promote your business.
- Financial projections: Estimate your startup costs, revenue, and profitability.
- Your operational structure: Decide how you want your company to be organized and managed.
Furthermore, it may be useful to assess other competitors in the market to see where you can have an edge or provide something of unique value.
Step 2: Choose a Legal Structure
Generally, you will have the choice between two business structures to register as a real estate brokerage in Dubai:
- Limited Liability Company (LLC)
- Sole proprietorship
Step 3: Company Registration
You will need to learn about the legal requirements and regulations that govern the sector here to establish your real estate business in Dubai,
To register your real estate company in Dubai, you will need to follow the following steps:
- Get a “good conduct” certificate from the police.
- Obtain initial approval: Apply to the Dubai Economic Department (DED) for preliminary approval.
- Reserve your business name: Choose a unique and appropriate name for your company.
- Register your business: Complete the registration process with the DED and obtain a trade license.
Step 4: Find Suitable Office Space
The location for your office is not something that you should overlook. In fact, we recommend choosing a location that aligns with your target market. Moreover, you should also consider other key factors like prices and facilities.
Bear in mind you will also need to register your contract with Ejari to comply with tenancy regulations.
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Step 5: Fulfill RERA Requirements
Next, you will need to fulful RERA requirements and get your RERA license. To do so, you need to do the following:
- Obtain external approval: Get approval from the Real Estate Regulatory Authority (RERA).
- Acquire a real estate brokerage license: Complete the necessary training and pass the RERA exam to obtain your license.
- Register with RERA: Submit the required documentation to register your business with RERA.
Step 6: Complete Post-License Requirements
After you get your RERA license, you’ll have just a few more steps before you’re ready to kick off your business activities.
- Obtain residency: Register for immigration and obtain a residency visa for business owners and employees.
- For owners – General Directorate of Residency and Foreigners Affairs (GDRFA).
- For employees – Ministry of Human Resources and Emiratisation (formerly Ministry of Labour).
- Hire employees: Register with the Ministry of Labor and process necessary documentation for employees.
- Obtain broker cards: Secure broker cards from RERA for your employees.
- All brokers must apply for training at the Dubai Land Department, after which they must pass the exam.
- Note: If the licence recipient does not plan to engage in brokerage personally, they do not need to register for a broker card.
- Open a bank account: Prepare the necessary document package and open a bank account considering KYC (Know Your Customer) procedures.
Step 7: Comply with Legislation & Stay on the right side of the law
At this point, you’re ready to soar but bear in mind that you may need to register with the Federal Tax Authority (FTA) or other government entities, and, of course, be sure to comply with anti-financial crime laws and anti-money laundering measures.
2. What Are the Eligibility Conditions to Start Your Real Estate Business in Dubai?
The eligibility conditions to start your real estate business in Dubai are not strict. Find more below about them.
- Age Requirement: Individuals must be at least 21 years old to apply for a permit to conduct real estate business in Dubai.
- For Those Below 21: If you’re under the age of 21, then consent of a guardian, along with approval from the city’s authorities, are required to become a shareholder in a real estate company.
Ensure you meet these criteria before proceeding with your business aspirations in Dubai’s real estate sector.
3. What Are the Organizations Responsible for Licesning the Companies in the Real Estate Sector in Dubai?
There are different key organizations responsible for licensing companies in the real estate sector in Dubai. They are all governed by the Government of Dubai. Find below the names of those organizations.
- Dubai Department of Economic Development (DED)
- Dubai Real Estate Regulatory Agency (RERA)
For Mainland Companies
- Regulating Authority: The licence is issued by DED with the permission of the Real Estate Regulatory Agency (RERA), which is part of the Dubai Land Department (DLD).
4. What Are the Legal Requirements and Documents That You Should Prepare to Register for Real Estate Company in Dubai?
You should be prepared with a number of documents and aware of the legal requirements needed upon starting your real estate business in Dubai.
Find below the list of requirements.
- Police Clearance Certificate: The owner of the company must provide the relevant certificate from the Dubai Emirate Police (Police Clearance Certificate).
- DED Approval: An Initial Approval from the Dubai Economic Department (DED) is mandatory as step No.1.
- Office: All Businesses in Dubai must have an office
Documents for Initial Approval in DED:
- Passport: for the company’s owner and manager. (It could be the same person or different)
Residency Status Information:
- For newcomers: the passport page with details of the last UAE border crossing.
- For long-term residents: If the owner and/or manager already possesses a UAE residency visa, the below items are required
- Emirates ID
- Visa
- No Objection Certificate (NOC) from the current visa sponsor is needed.
- Company Name: You should be ready to propose several company name options, and names should fulfill DED requirements.
5. What Are the Licences and Permits Required to Set Up a Real Estate Company in Dubai?
The required licences or permits differ depending on the activity of your business in UAE; however, whatever your business activity, you must have a licence in order to operate legally.
The DED has numerous Real Estate activities; some of the most popular are :
- Real Estate Buying & Selling Brokerage
- Leasing Property Brokerage Agent
- Buying and Selling of Real Estate
- Leasing & Management of Self-Owned Property
- Leasing and Management of other people’s property
6. What Are the DLD Requirements for Each Type of Business?
The DLD requirements differ according to the type of real estate activity that you choose. Find below the nature of the main types and the requirements needed from the DLD to start operating.
Real Estate Buying and selling Brokerage and Leasing Property Brokerage Agents can operate as:
- Sole Establishment
- Civil Company
- Limited Liability Company (LLC)
Buying and Selling of Real Estate can operate as:
- Limited Liability Company (LLC)
Common Requirements for All Three Activities:
- External approval from RERA (Dubai Real Estate Regulatory Agency) is mandatory
- All brokers are mandated to take an exam for the Broker Card registration.
Leasing & Management of Self-Owned Property & Leasing and Management of Other People’s Property.
Permissible Business Structures:
- Sole Establishment
- Civil Company
- Limited Liability Company (LLC)
Post-Licence Requirements:
- External Approval: From RERA (Dubai Real Estate Regulatory Agency).
- Establish a personal profile on the RERA platform.
Additional Requirements for Leasing and Management of Other People’s
- Property: A security deposit of AED 5 million is necessary.
- Training: RERA proposes that both the licensee and the manager take the Ejari course, regardless of the type of property management.
7. What Is the Estimated Budget for Starting and Operating a Real Estate Company in Dubai?
If you’re thinking about starting a real estate brokerage in Dubai, you should be prepared to spend at least AED 27,000 to get started. But keep in mind, this is just a starting point—there are several other costs you’ll need to consider, depending on your specific needs and the scale of your business.
However, beyond just the monetary investment, you will also need to develop a deep understanding of Dubai’s dynamic property market and learn how to navigate the regulatory environment.
With adequate planning and market research, you can definitely improve your chances of building a profitable and sustainable business in this competitive industry.
However, there is no exact amount for setting up your business as it can be affected by different factors and differs from one to another.
Find below the division of some of the basic costs of setting up a real estate business in Dubai:
- External approval RERA: AED 5,000
- Online courses for brokers: AED 525
- Broker exam: AED 773
- Licence voucher: around AED 27,000. (This is not the total cost)
Licence voucher: around AED 27,000. (This is not the total cost)
Important note on the Licence Voucher
- The licence voucher is the invoice that DED issues for the incorporation and it includes government licencing fees of DED.
- There are many factors that affect the cost of the licence voucher, including:
- Location
- Size
- Office rental price
- Company name (more expensive in English)
- Type of business activity
- Adding an additional activity to the licence (provided they’re compatible).
Note: Please note that all amounts listed can vary depending on specific conditions and changes in legislation.
8. Are There Specific Places Better for the Office Location?
No, there isn’t a specific place better than another, as it all depends on your preference, business, and budget.
However, you’re free to choose a suitable area, if your company is on the mainland, then it must have an office for registration in the Emirate of Dubai.
9. Is the Free Zones a Better Option? And why?
Free zones in Dubai as the location for your office might be a good or bad option according to your case; accordingly, it’s better to know about each option to decide.
Free Zones
- Companies registered in free zones have limited operations within the UAE. They can only operate within that specific zone or outside of the UAE.
- Such companies are not allowed to conduct business in the general mainland market of the UAE.
Mainland UAE Companies
A mainland company has the capability to conduct operations both locally and globally.
Nowadays, local companies also gain the trust of both local and foreign partners, including banking institutions.
10. What Are the Considerations for Setting Up an Office Space That Meets Legal and Operational Requirements?
There are some points that you should consider while setting up the office of your new business. Being aware of them will make the process easier and provide you with some guidance.
Office Space Requirements for Mainland Companies in Dubai
Type of office space:
- The office must be a physical space.
Lease Agreement:
- Must be signed under the name of the Company.
- Lease duration: at least 1 year.
There are two main options for office rental in Dubai :
- Business Center Office: This is a more cost-effective choice as it’s fully furnished and includes all utility-related payments. (but not all activities are allowed to be registered on the base of BC)
- Standalone Office: This option might be more costly, as it requires additional expenditures for setup and incurs extra fees.
11. What Are the Benefits of Starting a Real Estate Business in Dubai?
There are many benefits that come with starting a real estate business in Dubai; it’s not only about having your own business but also what this city has to offer in this regard.
Find below some of the perks that come with starting your business in Dubai.
- Economic Growth: Dubai boasts a rapidly growing economy, sparking interest in the real estate market.
- Diverse Property Options: The market’s variability offers choices between budget and premium segment properties.
- Business Activity: Dubai is a business hub, home to numerous international corporations and solvent clients.
- Record Transaction Volumes: In 2022, real estate transactions doubled, hitting a 12-year record with a total sum of $41.13 billion.
- Foreign Investments: Dubai ranks second worldwide in direct foreign investments, with investments in real estate growing by 100% in recent years.
- Tourism Infrastructure Development: There’s an anticipated 134% increase in built-up area over the next 20 years, with property returns ranging from 7 to 13%.
- Presence of Major Developers: Dozens of globally renowned developers operate in Dubai, backed by the government.
- Tax Benefits: Most taxes, including those on real estate and international activities, are set at zero.
- Stable Infrastructure: Dubai offers reliable infrastructure and world-class amenities.
- Attractive Policies: The city is renowned for its investor-centric policies and provides equal rights to both local residents and foreigners.
- Reputation: Dubai is recognized as a global hub for upscale real estate.
12. How to Start a Real Estate Broker Company in Dubai?
Starting a real estate broker company in Dubai involves several key steps:
- Decide on your business location
- Select your business activity
- Pick a company name
- Get RERA certified
- Draft a Memorandum of Association
- Apply for a trade license
- Obtain approval from the Dubai Land Department
13. How Much Does a Real Estate Broker Make in Dubai?
A real estate broker in Dubai can earn anywhere from AED 6,500 to AED 26,000 per month, depending on factors like industry, location, and experience. Dubai, in particular, offers some of the highest salaries in the UAE for real estate brokers.
You now have answers to all the details regarding how to start your real estate business in Dubai; it all starts with information gathering, good planning, and, most importantly, visibility over what happens in the market.
You can check the latest insights about the real estate market in Dubai through the Market Watch Q3 2023 report from here.
