Investors and entrepreneurs worldwide can discover a plethora of profitable business opportunities in Dubai, especially in the real estate industry. The city has a thriving market for real estate considering its popularity and demand in tourism, commerce, and other significant sectors.
Hence, it makes up an ideal platform for entrepreneurs to start a real estate company in the UAE. If you are wondering how to set up a real estate firm and what could be the real estate license cost in Dubai, then this article will guide you with all the details.
Types of real estate business in UAE
Below given are the various types of real estate firms one can set up in the UAE –
1. Property Brokerage
In this business, the agent sells properties directly to buyers or sellers. In addition, they arrange a team who finds prospective clients and show them properties. One of the basic requirements for this type of business is the ability to negotiate deals.
2. Property Management
In this business, the agent takes care of the properties that are rented out by other people. When the lease expires, the agent helps to renew it or help the owner to sell the property. This line of work requires excellent negotiating ability and management skills.
3. Land Development
This line of work involves planning projects of land development. For this purpose, the developer hires professionals to handle each aspect of the project such as engineering, architecture, marketing, construction, etc. to ensure the smooth operation of the project and derive expected results.
4. Property Agency
A property agent handles buying and selling of real estate properties. They act as middlemen between the buyer and the seller and get paid on a commission basis. Therefore, they need to have a large pool of clients in order to make greater profits.
Benefits of opening a real estate business in UAE
There are several benefits to starting a real estate business in Dubai. The most prominent ones are explained here –
1. No income tax
The topmost benefit that comes with establishing a real estate firm in UAE is that no income taxes are levied on real estate company owners. Besides, as of now, the UAE government has imposed a nominal rate of taxes on company revenue.
2. Minimum VAT
VAT was introduced in the year 2018 at a 5% rate in the UAE. The collected VAT was retrieved from the end user and paid to the customer for public use. The implemented VAT by the UAE government is assumed to be one of the lowest in the world.
3. Standard lifestyle
A real estate business setup in Dubai allows you to enjoy a luxurious lifestyle, not just by yourself but with your family as well. All you need to do is get a real estate agent license in Dubai along with a residence visa and a family visa.
4. Growing economy
When you invest in real estate in UAE, you are ultimately investing in the economy of that country. As the economy of Dubai is already on the rise, starting a real estate business would only profit in the long run.
5. High returns on rent
The rental return in Dubai is around 5.82%. Moreover, the real estate market is anticipated to soar high in the future and the investors can enjoy a stable and continuous cash flow. Thus, it makes Dubai one of the best destinations for real estate investors.
6. Better opportunities
The real estate industry in UAE has a bright future ahead of itself, which is why more and more people are showing interest in property investment and the demand for real estate services is also rising. Hence, tapping into this growing market can help you get started with your business journey and make good profits.
7. Easy licensing
It is quite easy to set up a real estate company in Dubai if you follow all the required procedures correctly. In order to ensure that only competent individuals qualify for this field of work, the government has mandated the real estate exam that every candidate has to clear to proceed with the license application.
8. Robust support system
A real estate business setup in UAE would require you to understand the local culture and customs and adapt to the environment and work ethics of the country. The government also extends comprehensive support to fulfill this purpose of the business owner by helping them secure finances for the business and assisting them with company formation.
Alternatively, you can also seek assistance from the business formation experts at UAE Expansion who share a healthy rapport with all the significant authorities and government agencies in the UAE. They can help you secure necessary approvals and also suggest easy ways to clear the RERA exam compliantly.
Real Estate License in Dubai
Once you have determined what kind of business you want to establish in Dubai, the next step is to get your real estate agent license. The Real Estate Regulatory Authority (RERA) is the supervisory body that administers the real estate industry and oversees all activities related to the sale and purchase of real estate in Dubai. Its major responsibilities include the issuance of RERA licenses to real estate agents, brokers, and even companies assuring their compliance with the laws and provisions.
Securing a RERA license in Dubai is relatively straightforward compared to other countries. However, it is always better to move carefully through expert assistance so as to ensure that your application is free from any possible errors or delays. UAE Expansion professionals will carry out this job thoughtfully and make sure your real estate license cost in Dubai is minimal and affordable.
Moving forward, to get an RERA license, you have to provide the following documents and information to the authorities –
- RERA Exam results
- Proof of qualification
- Proof of funds/financial statements
- Passport copy
- Lease agreement for the office facility
- Complete list of the staff members
- A declaration of compliance with the rules and regulations of RERA
You will also have to pay a license fee which is a part of your real estate license cost in Dubai. The fee amount will vary depending on the size of the company. Once you receive your license, you can easily get started with your real estate business.
Now that you are aware of the legal requirements of this business, it’s time to look at the real estate agent license cost in Dubai.
Cost of opening a real estate brokerage in Dubai
The real estate license cost in Dubai differs according to the specific area you choose and the business venture you plan to operate. It also includes the RERA exam fee that the applicant undertakes to get the RERA license. Again, the amount of the exam fee would vary depending on the educational background of the candidate. In addition, the applicant may also have to incur expenses for additional activities and government levies.
To get a detailed estimate of the real estate license cost in Dubai is AED 28,500 to AED 50,000. Contact the legal experts at UAE Expansion.
Key Steps to Start Real Estate Business in Dubai and the UAE.
A real estate company in UAE can be registered by following the below procedures.
- Name Approval
- Initial Approval + Tasheel
- Memorandum of Association
- UAE local partner
- Approval from Estate Brokers Registration Services (RERA)
- Good Conduct Certificate
- Dubai Land Department Approval
- Dubai Rented Office Space
Connect with UAE Expansion
A real estate company formation in Dubai necessitates the completion of a large number of transactions and legal formalities. Although the process is formulated in a way to keep the interests of the investors, there might be still a requirement for expertise considering the complexities of the real estate laws set forth by RERA.
The legal experts of UAE Expansion are well-versed in the whole process, and thus can easily guide you at every step, starting from business planning to getting your real estate license. All you need to do is get in touch with them, share your prerequisites, and they will handle the rest.