How do you Set up a Real Estate Business in Dubai?

Are you looking to establish a real estate business in Dubai? The Emirate is a testament to visionary planning and continuous innovation. Establishing a real estate company in Dubai allows you to explore the untapped potential and opportunities available in the market. The rental yields in Dubai are increasing significantly due to the growing population and demand for commercial and residential projects. This makes it the perfect time to invest in the real estate market in Dubai.

In this article, we provide all the necessary details to enter the real estate industry in Dubai. Read on to learn about the benefits of business incorporation along with other details.

Benefits of Starting a Real Estate Business in Dubai

There are certain benefits for starting a real estate business in Dubai. Let us look at them in detail:

• Support from Authorities

The government authorities offer numerous incentives to attract foreign investors and increase inbound investment. From access to freezone facilities, the benefit of full ownership and the option to avail of long-term visas, the authorities ensure providing a business-friendly environment. Establishing the Real Estate Regulator Authority (RERA) ensures standardisation within the market due to transparent regulations.

• Increased Profitability

In Dubai, the rental yields fall among the highest, making it a profitable market for real estate agencies. The increase in population leads to infrastructure development and a surge in demand for new commercial and residential projects.

• Infrastructure and Technological Support

Entrepreneurs prefer Dubai for its high-quality and modern infrastructure like advanced transportation facilities and good telecommunication. Iconic projects like Burj Khalifa, and Palm Jumeirah, among others throw the limelight on real estate builders in Dubai. Moreover, the Emirate has adopted smart city technologies to enhance efficiency and reduce manual labour.

• Tax Benefits

Offering significant tax advantages, such as no personal income taxes and property tax, increases investment in the real estate market of Dubai. The absence of taxes enhances the return received on past investments, making it popular among investors worldwide.

• Connection to other Sectors

The real estate sector is directly linked with other growing sectors such as the tourism and hospitality business in Dubai. As a result, the growth of these sectors directly impacts Dubai's real estate market.

Which Licenses are Required to Start a Real Estate Business in Dubai?

Here is the list of licenses needed to start a real estate business in Dubai:

• Trade License

If you want to start a real estate business in Dubai and need to operate your activity, you need to get this license from the Department of Economic Development (DED). This is the authority that allows you to perform your business activities.

• Brokerage License

This license is related to the land, so you need to get this license from the Dubai Land Department (DLD). With this license you can engage in activities like buying, selling, reselling and renting properties in Dubai.

• Commercial License

The commercial license in Dubai allows you to allow someone else to buy or sell a property on your behalf.

• RERA Certification

This is a license which is essential for anyone who is involved in the real estate business in UAE. RERA makes you look credible in the eyes of your clients.

• Ejari

The Ejari is known as the rental agreement which is mandatory for any landlords and property owners in Dubai. This is a tenancy agreement registered with Ejari.

How to Start a Real Estate Business in Dubai?

If you are interested in starting a real estate business in Dubai, here is the step-by-step process that needs to be followed-

Step 1 - Choose an appropriate business structure based on the business objectives.

Step 2 - Decide on the jurisdiction where you want to set up your real estate company in Dubai, freezone or the mainland.

Step 3 - Register the trade name and obtain the trade name certificate from the relevant authorities.

Step 4 - Submit the application along with the necessary documents to the authorities and receive initial approval.

Step 5 - Clear the training course in the Dubai Real Estate Institute (DREI) and obtain certified training for real estate brokers in Dubai.

Step 6 - Secure an office space and acquire the lease agreement.

Step 7 - Apply for a business license by paying the requisite fees. You may need to receive approvals and permits from relevant authorities like the Dubai Land Department (DLD) based on the activities your business conducts.

Step 8 - Register your business with RERA by submitting a copy of the business license and other necessary documents.

Note- The process to register a real estate business can change depending on the chosen jurisdiction and the chosen business activity.

How Commitbiz Can Help?

Commitbiz LLC has been in the business for over 17 years and has incorporated 10,000+ companies in several jurisdictions. Our business advisors have the skills and knowledge to reduce business burdens and provide quality and comprehensive services. They ensure an understanding of the business needs and address them effectively to ensure long-term success. Contact us to learn more about setting up a real estate business in Dubai.