Dubai is a vibrant city and pretty powerful. Its world-class infrastructure has already established it as a major player in terms of trade and tourism and has attracted major foreign investors in the world.
So, if you have planned to embark on a real estate company in Dubai, as an entrepreneur, you have to see the unlimited amount of potential and just keep building. And the good news for entrepreneurs is that real estate is one of the thriving businesses in Dubai.
As for the race in the Gulf States for skyscraper structures, Dubai is the front-runner. This guide has been drafted to help investors and business professionals who are keen on investing in the UAE real estate sector by giving a complete view regarding the regional view of the industry.
The Dubai Real Estate Market
Over the past few years, the government has taken the necessary steps to focus on and diversify the real estate segment. Business investors have got complete flexibility to invest in any of the available segments for a real-estate business setup in Dubai.
Office Market
The demand for operating business has been continually rising, which demands office, co-working, and customized office space solutions. Investors prefer to invest in the real estate office market, as there exists a huge demand.
Retail Market
The retail sector stands as one of the top-performing business industries that significantly contributes to the GDP of the nation. The space requirement for retail outlets has been continuously growing and is expected to reach the next level within a few years.
Hospitality Market
The growth in the tourism industry has got a drastic impact on the hospitality sector, which equally demands proper land and space to execute its operations. There has been significant growth in the hospitality sector over the few years in the United Arab Emirates.
Residential Market
The number of tourists has been spiking up, which is increasing the number of inhabitants in the region of UAE. The growing population turns up the residential market, which is focusing on low sales prices, thus increasing the supply to drive in and strengthen the local currency.
Industrial and Logistics Market
The industries and logistics sectors stand as one of the essential business segments that contribute significantly to the development of the economy.
How to Start a Real Estate Business in Dubai?
The incorporation of a real estate business on the grounds of the UAE involves the following steps:
1. Select the Location and Business Structure
The location of a company determines its success to a great extent. The area provides multiple business location benefits to the investors to select among Mainland and the Dubai Free Zones according to the number of shareholders present and business capital available.
Once the location gets finalized, the next move is to complete the business structure that represents the type of company that will be incorporated.
2. Decide a Trade Name
Once the business structure gets finalized, the next step is to register the trade name with the Department of Economic Development in the Emirates. It is to be kept in mind to include “Real Estate” or “Broker” in the trade name, which will quickly speak about the business services that will be carried out during the business life-cycle of the business entity.
3. Obtain the Business License
The next step is to obtain a business license for the business entity, which stands as a legal permit that will allow it to carry out business activities in a proper way. On the grounds of the United Arab Emirates, it stands as a mandate for the business entity to obtain a business license to carry out the respective operations.
The real estate business needs to gather approval and authorization from the UAE Government and the Real Estate Regulatory Authority (RERA) in Dubai.
4. Hire Back-Office Services
To ease out the business activities and professionally maintain each domain, the business entrepreneurs in the UAE prefer to go ahead with professional experts when it comes to maintenance of several activities like back-office, real estate accounting, keeping track of the company expenses and revenue generated, etc. The core idea behind hiring the pro services is to utilize the time in a productive way and devote maximum time to future planning and strategizing.
Benefits of Starting a Dubai Real Estate Business
There are various reasons to set up your company in Dubai. However, given below are some of the benefits of proceeding ahead with a real estate business in the ground of Dubai:
1. Lucrative Market for the List of Real Estate Companies in Dubai
Business incorporations and foreign ex-pat settlements have seen tremendous growth when it comes to the land of the UAE. Investing in the real estate market sounds to be profitable because there exists a huge demand in all possible categories.
2. The Tax-free Jurisdiction Turns Out to Be Extremely Beneficial
One of the driving agents that grabs the attention of international investors to invest in the region of UAE is the tax-free benefit that the area holds. The government has exempted the income tax, and individuals have complete freedom to earn lump sum without paying any taxes.
However, since 2018 the VAT has been implemented by the government of UAE, which mandates that business professionals pay 5% consumption tax who are involved in the supply chain process.
3. Complete Repatriation of Capital Invested and Profits Earned
The UAE investment rules allow business investors to relax and become carefree regarding the repatriation of capital invested. Upon discontinuation or liquidation of the company, no extra tax needs to be paid, and the owner can carry back the total capital and profits to the home country.
4. No Property Tax is Applicable and Therefore Attracting Investors
In Dubai, there is no property tax, which indicates the fact that once you have bought the property and have paid the registration fee to the Land Department, there is no other government tax that is to be paid against your property at all. This no-tax policy of the Emirate attracts a lot of investors and businesses to start a business in Dubai.
Handling the incorporation process with the help of business experts eases the process and can complete the relevant proceedings in one go. If you are planning to step ahead and set up your company in UAE, do contact us today-we’d be glad to assist.