Are you, too, wondering about the cost of opening a real estate brokerage in Dubai? If yes, before we get to that, you must learn how to set up a real estate business in Dubai. Moreover, why and how to get a real estate agent license in Dubai.
As a matter of fact, brokers and real estate agents play an important role in promoting the real estate market in Dubai. According to a report by Dubai Land Department (DLD), the total value of real estate brokers’ commissions for 2016 totaled over AED 1.5 billion from 32,932 transactions. Whereas Dubai’s real estate market also attracted 5,933 active brokers and 2,285 registered brokerage offices.
Furthermore, 2021 saw an increase in property prices in Dubai. According to the statistics, from November 2020 to October 2021, Dubai’s property became more expensive monthly (from AED 820 to AED 977/ft2 on average/month). And yet, in the first half of the year, a record 37,762 units were sold. Hence, today, there’s a huge demand for real estate brokers.
This shows how beneficial it is to start a real estate brokerage in Dubai. If you’ve read so far and it interests you, we suggest you read ahead. We further discuss the benefits of opening a real estate brokerage in Dubai, its registration process, and the cost of opening a real estate brokerage in Dubai.
What Are the Benefits of Opening a Real Estate Brokerage in Dubai?
Opening a real estate brokerage business in Dubai has several benefits. Here, we have mentioned the most prominent ones.
1. No Income Tax
The topmost benefit of opening a real estate brokerage business in Dubai is that you don’t have to pay income tax. Moreover, as of now, Dubai doesn’t charge any tax on a company’s profits, be it corporate or personal tax.
2. Minimum Value-Added Tax
UAE introduced VAT in 2018 at 5%. This VAT rate locked by the UAE government is one of the lowest in the world. Moreover, it is a tax payable to the government and usually levied on the end consumer.
3. High-Standard Lifestyle
Another one of the benefits of doing real estate business in Dubai is that you get to enjoy a luxurious lifestyle. Also, it’s not just you that gets to experience it. You can make arrangements for your family too. But for that, you’ll need to apply for a family visa.
4. Consistently Growing Economy
If you invest in real estate, especially overseas property, it’s not just a house or a piece of land that you invest in. You’re ultimately investing in the economy of Dubai. And since the economy of Dubai has been consistently growing, opening a real estate brokerage business in Dubai will only benefit you in the long run.
5. High Returns on Rents
The rental return in the golden city is not less than 5.82%. That’s precisely what makes Dubai one of the best designations for property investors.
In addition, investors get to enjoy a stable and continuous cash flow. Second, the real estate market in Dubai is set to soar high in the future. So, now is the time to be aware of the cost of opening a real estate brokerage in Dubai.
What Are the Required Documents to Star a Real Estate Brokerage Business in Dubai?
Since real estate businesses involve a lot of legal work, a lot of paperwork and documentation are involved too. Here, we have only mentioned the primary documents you’ll need to start the registration process:
- A copy of your passport.
- 2 colored, passport-size photographs.
- A copy of your visa or an entry permit.
In addition, you need to acquire a few more legal documents and permissions. You can contact the legal experts at the UAE Expansion India branch to get a detailed list of documents.
What Is the Process to Open a Real Estate Brokerage Firm in Dubai?
Note that the process to open a real estate brokerage firm in Dubai is simple. The only thing you need to do is collect and submit the required documents on time. Rest is just a piece of cake. To give you an idea, here’s an overview of the process.
- The first step is to understand the market. Study the areas you think will be best for setting up a real estate brokerage firm in Dubai. Moreover, don’t just rely on virtual information. It’s best if you go and check out the sites yourself.
- Next, decide on a business model. First, you determine if you want to set up a company in one of the free zones or in the mainland area. Second, you must choose between a branch, an LLC, a public or private partnership, or a sole proprietorship.
- Decide on a trading name, collect the required documents and submit them to DED.
- If all seems right, you’ll get the initial approval. Once you get the initial support, you must apply for a real estate agent license in Dubai or a real estate broker license in Dubai.
- On submitting all the final documents, you’ll get your license in a matter of 4 to 5 days. Furthermore, ensure to pay the required fee within 24 hours of receiving the license.
- Apply for the RERA approval and get a legally approved broker ID.
What Is the Cost of Opening a Real Estate Brokerage in Dubai?
It is challenging to give an accurate estimate of the cost involved. However, to provide you with an idea, the cost of opening a real estate brokerage in Dubai starts from around AED 21,000. Furthermore, there are a few more additional costs you need to arrange for. So, to get a detailed cost estimate, you can contact the legal experts at the UAE Expansion .
Open Your Real Estate Brokerage Firm in Dubai
Now that you’ve read this blog, you’re well-equipped with all the information needed to start a real estate brokerage business in Dubai. Still, there are a few things that you need to be clear about. Moreover, you must know about all the additional documents, permissions, and costs involved. Therefore, it’s best if you get in touch with the experts. The legal experts at theExpansion India branch are well aware of the whole process. They will guide you at every step, from business plan to documentation to getting your license. All you need to do is call them, and they will take care of the rest.