Setting up a real estate brokerage in Dubai can be a profitable venture for you. Dubai has emerged as one of the world’s top regions for attracting foreign investment; thanks to its world-class infrastructure, breathtaking skylines, trading opportunities, and tourism.
In this article, you will learn everything about how much it costs to open a real estate brokerage in Dubai. We are going to go through the steps to establish a real estate business. Let us:
Growth of Dubai Property Market
Dubai’s property market is growing at an unprecedented rate, thanks in part to the world’s tallest building:
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- The Burj Khalifa.
- Marina 101
- Princess Towel
In comparison to other popular regions around the world, Dubai’s thriving real estate market generates one of the highest returns. Furthermore, with e-Government services making the entire process online, obtaining certifications and trade licenses, making payments, and obtaining visas have become easier than ever.
Statistics for the Dubai Property Market in 2023
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- Total transactions in Dubai’s residential market: 9,876, marking an 18.8% increase from the year prior in June 2023.
- Year-to-date residential transactions: 57,737, the highest figure recorded over the year’s first two quarters until June 2023.
- Average price increase in Dubai’s residential market: 16.9% in the year through June 2023.
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- Average apartment prices grew by 17.2%.
- Average villa prices increased by 15.1%.
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- Average residential rents increased by 22.8% in the year to June 2023.
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- Slight decrease from the 24.2% increase recorded a month earlier.
- Average apartment asking rents grew by 22.7%.
- Average villa asking rents increased by 23.1%.
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Data Provided by: CBRE Report
Are you prepared to launch a real estate venture in Dubai?
There are several steps you must take before applying for your license. No matter if you want to start a real estate brokerage, a property management company, or become a developer.
To begin, sketch out your business activity. This will determine the type of service you are allowed to provide. For example, if you list real estate brokerage as an activity, you can:
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- Renting out properties.
- Acting as a representative for a property’s seller.
- Consulting on property sales and lettings.
- Managing property on behalf of owners.
There are numerous property-related business activities to pursue. It is advisable to work with a company formation expert at this stage; this is because your chosen activity must align exactly with the activities you wish to carry out.
The following step is to select a company name. In the UAE, this requires a little more thought than in other parts of the world. Why? Because the UAE has a strict but simple set of naming conventions. An expert in company formation can assist you in adhering to them.
The rest of the process
To summarize, you should avoid using any offensive or blasphemous language. Avoid well-known company names and abbreviations if naming your company after yourself. For example, Damian Jacobs Consulting rather than D Jacobs Consulting. You must also ensure that the name you want to use is available for registration.
The last step before submitting your license application is to decide whether you want to set up in a free zone or in the Mainland. Both have numerous advantages. Free zones, such as Fujairah Creative City, provide advantages such as:
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- A quick and simple incorporation process.
- Ongoing business support.
- Financial incentives such as tax exemptions and no currency restrictions.
The Mainland, on the other hand, enables you to conduct direct trade with the UAE market and compete for potentially lucrative government contracts. The best setup for you will be determined by the nature of your business. Again, an expert in company formation can advise on the best approach.
Step by step for setting up a real estate brokerage in Dubai
Recognize the market
To be a successful real estate entrepreneur in Dubai, you must first understand the market. Examine the areas where you want to establish your business and learn everything you can about them.
Instead of relying solely on virtual information, conduct a physical inspection and exploration of the surroundings. Another excellent way to gain a better understanding of your real estate market is to speak with nearby property owners; they usually have valuable insights into the day-to-day activities and livelihood.
Select a business model
If you are a foreign national looking to start a real estate business in Dubai, you must carefully select your business model. If you want complete control over your business, you will need a free zone license, which comes with restrictions. To conduct trading operations in the UAE, you will need to work with a local service agent.
However, the other option is to establish a business in Dubai Mainland, where you will own 100% of the company; and UAE citizens will only be local service agents. The citizen acts as a sponsor, ensuring that you run your business and trade by your wishes. Your business model can be regardless of the type of ownership you choose.
At Connect Group, we make it easy for you to find a suitable business model for your company. So, feel free to get in touch with us for more information.
Finish the company registration procedure
After deciding on a business type, you must register it in Dubai. Along with the business, you will need to come up with a trading name under which you will operate. Try to come up with names that immediately make people think of real estate.
Additionally, you must submit your business and trading documents to the UAE Department of Economic Development. After you submit the documents, the relevant governing body will grant you a commercial license to conduct real estate buying and selling operations.
Obtain your credentials
Obtaining the necessary qualification is one of the most important requirements for establishing a real estate business in Dubai. As an entrepreneur, you must take the Dubai Real Estate Institute’s qualification exam (DREI). The Certified Training for Real Estate Brokers certification requires a four-day training schedule and an exam. This is a fundamental requirement for obtaining a real estate license in Dubai.
Apply for company certifications that are relevant to your industry
The Real Estate Regulatory Authority of Dubai is in charge of issuing licenses for the establishment of a real estate business. You will need to take a professional training course to get your business approved and authorized by this organization.
Typically, different types of real estate activities necessitate different types of licenses; this is why it is recommended that you check RERA’s website before you begin.
Set up a professional office
You will need to set up your office space once you have obtained the necessary certifications. A physical office gives your company credibility and allows buyers to contact you whenever they want. Look for a good location for your office because it can help you make a good first impression on your customers.
In addition, you have the option of renting or purchasing office space on the Dubai Mainland. Make sure your office has a landline where you can receive business calls. You can also choose from a variety of Connect Group Business Center for desk or office space.
Contract out specific services
When starting a real estate business in Dubai, it is recommended that you outsource some of your operations. For example, your company will require accounting services, and hiring a full-time employee will be prohibitively expensive.
Hence, you can work on a pay-as-you-go model and use your money wisely if you outsource these services to a reputable agency. Also, at Connect Group, we offer tax consultancies, so we can handle your VAT and accounting needs.
Put yourself in the shoes of the client
Quick commissions may appear to be lucrative in the real estate business. As a newcomer, you may be tempted to seal a deal simply to make some quick cash. However, this strategy may lead to you being on the wrong side of the market in the long run.
Remember that the goal of the real estate business is to assist your buyers in finding the right property; so, it is critical to understand their requirements. You will not be able to establish your brand in the future unless you offer what the customer wants.
Hence, good deals not only help you build an excellent customer experience, but also help you get referrals in the long run.
Stay up to date on the latest trends
Dubai’s real estate market is constantly expanding, which makes it extremely competitive. It is best to stay ahead of the curve if you want to sustain your business in the long run. Try to stay up to date on the latest real estate laws and market structure changes.
Simultaneously, you will need to keep a close eye on your competitors’ offerings. Because markets are constantly changing, staying up to date on recent initiatives will help you gain an advantage with your buyers.
Why is 100% UAE local ownership required for a real estate brokerage business in Dubai?
Investors looking to establish businesses in the Mainland are aware of the benefits of partnering with a local sponsor (UAE national) who receives a 51 percent stake in your company. In the case of a real estate brokerage firm, however, you must offer an Emirati 100 percent ownership. This is done to ensure that ex-pats do not overspend on financial transactions related to their Dubai real estate company.
Hence, to protect investors in the UAE, the investor has 100 percent power of attorney over the company, while the local sponsor has 100 percent ownership. Furthermore, the investor has complete operational control over his company and has the authority to make all critical decisions for his real estate brokerage firm.
As a result, you can contact us at Connect Group, and we will serve as your local partner to assist you in establishing your brokerage firm in Dubai.
How much does it cost to start a real estate brokerage in Dubai?
You will need a real estate brokerage license to open a real estate brokerage in Dubai. The minimum cost of setting up a real estate business in Dubai for an LLC is approximately AED 53,950.
Therefore, to obtain the license, you must pass the Real Estate Regulatory Agency’s registration exam (RERA). The exam fee that is included in the cost of opening a real estate brokerage in Dubai varies depending on your educational background.
Hence, the total cost of establishing a real estate brokerage in Dubai varies according to your location and business activities in UAE.
How can Connect Group help you?
Starting a real estate business in Dubai can be profitable due to the city’s fantastic market opportunities and ever-growing investments. All you need to start your business plan is the right support. Connect Group assists you in establishing your real estate brand in the Dubai market.
Our expert consultants assist you every step of the way with documentation, banking, licensing, and so on, allowing you to focus on building the foundation of your business. In recent years, we have assisted several aspiring entrepreneurs in carving out a niche for themselves in the Dubai real estate industry.
Would you like to contact Connect Group to obtain more information about how much it costs to open a real estate brokerage in Dubai? Ask us any questions by calling us at +971 43 316 688. Also, feel free to email us at [email protected].
