Are you considering investing and wondering how to start real estate business in Dubai? Here is your comprehensive and ultimate guide. Dubai is known for its dynamic real estate sector, which offers success and growth; therefore, starting a real estate business can be worthwhile for new entrepreneurs. Making your real estate business successful requires understanding the legal rules and regulations, compliance with regulations, and a marketing strategy.
Starting a real estate company in the UAE involves several steps, such as getting a real estate brokerage license from the Land Department of Dubai, submitting an application and required documents, and meeting the requirements set by the authorities. Start a successful real estate business with careful planning and understanding of Dubai’s real estate market.
How to Open a Real Estate Business – Step-by-Step
To start your real estate business in Dubai, here are the steps you need to follow,
Select a Legal Structure – Start a Real Estate Business in Dubai
The first step in starting a real estate business is selecting an appropriate legal structure. It is necessary as it will define your company’s future business operations. You can choose the mainland from a free zone business setup for your real estate business in Dubai. Selecting a free zone is common among real estate firms as it provides attractive business conditions and other tax benefits. There are two business structures to choose from,
- Limited Liability Company (LLC)
- Sole Proprietorship
Registering Trade Name of Company – Start Real Estate Business in Dubai
After securing a legal structure for your company, register your company’s trading name. For this purpose, you must send an application to the Department of Economic Development (DED) with the required documents. Select an impressive and attractive trading name that best represents the business activities you plan to conduct.
Getting Initial Approval – Start Real Estate Business in Dubai
After reserving your trading name, you need initial approval from Dubai’s Department of Economic Development. The process includes filling out an application form and submitting the initial documents before moving on to setting up your real estate business.
Getting Approval From RERA – Start Real Estate Business in Dubai
The Real Estate Regulatory Agency is the regulatory authority for Dubai’s property and real estate market; getting its approval is mandatory. First l, complete a training course at the Dubai Real Estate Institute (DREI) and obtain the Certified Training for Real Estate Brokers qualification. After the training, you must pass the RERA exam to progress.
Gather a Memorandum of Association – Start Real Estate Business in Dubai
Depending on your business structure, gathering a Memorandum of Association (MoA) is essential to start your real estate brokerage. This document displays your company’s rules and structures and needs to be notarized in court to be official.
Select a Business Location – Start a Real Estate Business in Dubai
The next step is carefully selecting a location for your business. Whether you buy or lease an office, you must get a tenancy contract with the Ejari, responsible for keeping rental contracts in check.
Apply for a Trade License – Start a Real Estate Business in Dubai
A good business foundation for running a legitimate company in Dubai is getting a trade license from the DED. You’ll need a Dubai Land Department’s real estate brokerage license to get a real estate license in Dubai. After getting your brokerage license, you can legally run your real estate business in Dubai.
Register with RERA – Start Real Estate Business in Dubai
After obtaining your license, register your business with RERA Dubai by submitting your application form, photocopying your DED license, tenancy contract, proof of payment for your RERA courses and certificates, and business location.
Register with DNRD and MOL – Start Real Estate Business in Dubai
Suppose you plan to hire workers from overseas and want to sponsor their visas. For this purpose, you must register your real estate residency visa with the Department of Naturalization and Residency Dubai (DNRD) and the Ministry of Labour (MoL). This step is mandatory for companies involving multicultural teams.
Approval from DLD – Start Real Estate Business in Dubai
Before officially commencing your business, you need approval from the Dubai Land Department (DLD). As DLD is responsible for everything related to real estate, getting its approval confirms that you abide by local laws and regulations.
Open a Bank Account – Start Real Estate Business in Dubai
Open a bank account for your business’s financial transactions by submitting the necessary documents and considering “Know Your Customer” (KYC) procedures.
Craft a Business Plan
Embarking on setting up a real estate company in Dubai needs a strategic business plan. A business plan will help set the roadmap to achieve your goals and plans. A business plan must be systematic, with easy steps that align with your path.
Outlining Clear Objectives
In the initial stage of making business plans, it is essential to outline clear objectives and visions. These objectives should include all your future business targets and guide all your strategic choices.
Perform SWOT Analysis
Conducting a SWOT analysis is a necessary step that helps you assess your business’s strengths, as they need improvement, and other challenges and opportunities. The SWOT analysis helps set clear and realistic objectives for your company. Having a deep understanding of the local market in Dubai’s real estate sector can strengthen your business. Additionally, areas that require improvement include having good professional relationships.
Dubai’s emerging market trends can bring many opportunities, while obstacles can come from economic fluctuations and changes in laws and regulations. Conducting a SWOT analysis helps make strategies that bring advantages, address areas that need improvement, and minimize risks.
Planning Budget & Finances
A comprehensive financial strategy is a keystone of your business plan as it includes every aspect of fiscal planning, from capital requirements to expected financial revenue. This economic plan helps you make financial decisions for your business. It helps attract investors and partners, which is vital for upholding and expanding your company.
Sales and Marketing Strategy
An effective business plan also consists of a marketing strategy, which plays a vital role in establishing a prominent presence in the competitive real estate market of UAE. The marketing and sales strategy comprises Product, Price, Place, and Promotion. It includes deciding on properties you’re selling, setting competitive prices, finding the right place for customer engagement, and making attractive promotional content.
Eligibility Conditions to Start a Real Estate Business in Dubai
The eligibility conditions to start a real estate business in Dubai are simple as follows,
- Individuals must be at least 21 or above to apply for a permit to start a property business in Dubai.
- If you are under 21, you can get your guardian’s consent and approval from local authorities to become a shareholder in a real estate enterprise.
- Meet the eligibility criteria before working as a real estate agent in Dubai.
Documents required for Registering Real Estate Company
There are several documents and legal requirements to start your real estate brokerage. Find the required documents and list of legal requirements below.
- Clearance Certificate from Police Department. The Company’sCompany’s owner must provide the relevant certificate from the Dubai Emirates Police.
- Approval from DED. Getting initial approval from the DED is the first step and a legal requirement.
- Office Space. Your company must have a physical office in Dubai to run your business.
Documents for Initial Approval
- Passport of the company’s owner or manager
- Residency Information
For Newcomers. Passport page along with the details of the last border crossing in the UAE.
Long-Term Residents. If the owner already has a UAE residency visa, they must submit the following,
- Emirates ID
- Visa
- No Objection Certificate (NOC) from the current visa sponsor.
Company Name. Submit several names for your company according to the Department of Economic Development (DED) requirements.
Final Words
Understanding how to start real estate business in Dubai is essential as it is a challenging process that requires a careful understanding of local laws and license requirements. Following the rules and getting the required license, you can set up a successful real estate business in Dubai. Contact Al Riyady with any real estate market and business setup queries. Get help from our expert business consultants with Auditing Services, Accounting Services, Tax Consultancy and more questions.
