Dubai offers a strategic business location, with options to set up in the mainland or a free zone, catering to various business activities. Crafting a solid business plan and selecting the appropriate business structure are foundational steps to ensure success in the competitive Dubai real estate industry.
Steps to Set up a Real Estate Business in Dubai
Craft a Business Plan
Outline your company’s objectives, conduct a SWOT analysis, plan your budget, and detail the organizational structure and operational strategies.
Choose Your Business Location
Decide whether to operate on the mainland or within a free zone, evaluating tax benefits, operational restrictions, and business goals.
Decide on Legal Structure
Choose between a sole proprietorship, partnership, or limited liability company (LLC) during the company formation process, considering the impact on liability, taxes, and operational flexibility
Register Your Trading Name
Submit an application to the Department of Economic Development (DED) ensuring the name complies with DED guidelines and is unique.
Gather Required Documents
- Real Estate Exam certificate
- Valid passport
- Proof of office space
- Licensed broker proof
- RERA-registered accountant proof
- Recommendation letter
- Official degree
- Criminal record check
- RERA property valuation certificate
- Recent bank and credit card statements (last three months)
Register Your Business with DED
Obtain a trade license by submitting the required forms and documents and secure initial approval from the Dubai Economic Development.
Get RERA Approval and Obtain Necessary Licenses
Enroll in the Certified Training for Real Estate Brokers program at the Dubai Real Estate Institute (DREI), pass the Real Estate Regulatory Agency (RERA) exam, and apply for the real estate brokerage license from the Dubai Land Department (DLD).
Complete RERA Training
Complete the mandatory course for real estate brokers and obtain the necessary certification to qualify for the RERA license.
Set Up Your Office
Secure a physical office space that complies with regulatory requirements and register your tenancy contract with Ejari.
Open a Business Bank Account and Hire Staff
Open a dedicated bank account for your company’s financial transactions and apply for employee visas through the Department of Naturalization and Residency Dubai (DNRD) and the Ministry of Labor (MOL). Hire qualified employees to manage and operate your real estate business.
Benefits of Starting a Real Estate Business in Dubai, UAE
Types of Licenses Required to Start a Real Estate Business in Dubai
These real estate licenses ensure that your real estate firm complies with Dubai’s regulatory requirements and operates within the legal framework established by the government.
Types of Real Estate Businesses in Dubai
1. Property Brokerage
A property brokerage involves facilitating the buying, selling, and renting of properties on behalf of clients. Real estate brokers and agents work to connect buyers and sellers, negotiate deals, and provide market insights. This type of business requires strong negotiation skills and a comprehensive understanding of the local real estate market.
2. Property Management
Property management businesses handle the day-to-day operations of residential and commercial properties. This includes tasks such as tenant management, rent collection, property maintenance, and lease renewals. Property managers act as intermediaries between property owners and tenants, ensuring that properties are well-maintained and generating income.
3. Land Development
Land development involves acquiring land, planning, and executing development projects. This can include residential, commercial, or mixed-use developments. Land developers are responsible for overseeing the entire project lifecycle, from initial planning and zoning to construction and final sale. This type of business requires expertise in project management, construction, and market analysis.
4. Property Agency
A property agency acts as a middleman between buyers and sellers, handling all aspects of real estate transactions. Agents within a property agency work to list properties, market them to potential buyers, conduct viewings, and negotiate sales contracts. Property agencies often earn commissions based on successful transactions and must maintain a large client network to be successful.
Costs of Starting Your Real Estate Business in Dubai
| Cost Item | Estimated Cost (AED) | Description |
|---|---|---|
| Trade License | 12,000 – 15,000 | Issued by the Department of Economic Development (DED). |
| Real Estate Brokerage License | 5,020 | Issued by the Dubai Land Department (DLD) for engaging in brokerage activities. |
| RERA Certification | 3,200 – 15,750 | Training and exam fees for obtaining RERA certification. |
| Ejari Registration | 200 per lease agreement | Required for managing rental agreements. |
| Office Space Lease | 30,000 – 100,000 (annual) | Cost depends on location and size of the office. |
| Employee Visas | 4,000 – 7,000 per visa | Cost for each employee visa, including application and processing fees. |
| Legal and Consulting Fees | 5,000 – 15,000 | Fees for legal advice and business setup consultation. |
| Marketing and Advertising | 10,000 – 50,000 | Initial marketing and advertising costs to promote the business. |
| Miscellaneous Administrative Costs | 5,000 – 10,000 | Includes documentation, registration fees, and other administrative expenses. |
| Insurance | 2,000 – 5,000 (annual) | Business insurance costs, including liability and property insurance. |
FAQS (Frequently Asked Questions)
How much does it cost to start a real estate business in Dubai?
Starting costs range from AED 21,000 to AED 45,000, covering licenses, office space, employee visas, and administrative fees.
How to start your own real estate company in Dubai?
Choose a business structure, register your trade name, gather documents, get initial approval, obtain RERA approval, complete training, set up your office, open a bank account, and hire staff.
What are the licenses and permits required to set up a real estate company in Dubai?
Required licenses include a Trade License from DED, Real Estate Brokerage License from DLD, RERA certification, and Ejari registration. Additional licenses may be needed based on specific activities
Is real estate business profitable in Dubai?
Yes, due to high rental yields, strategic location, favorable tax policies, and a growing market.
Can foreigners own real estate businesses in Dubai?
Yes, especially in freehold areas and free zones allowing 100% foreign ownership.
What are the legal requirements and documents you should prepare to register for a real estate business in Dubai?
Documents include proof of passing the Real Estate Exam, passport, proof of office space, licensed broker, RERA-registered accountant, recommendation letter, official degree, clean criminal record, property valuation certificate, and recent bank statements.
How much does a real estate agent make in Dubai?
Income varies, with commissions ranging from 2% to 5% of property value.
How long does it take to get a RERA license in Dubai?
Typically, 2-4 weeks, including training and passing the RERA exam.
What are the eligibility conditions to start your real estate business in Dubai?
Must be 21+, have a clean criminal record, pass the Real Estate Exam, and complete RERA certification.
What are the ongoing compliance requirements for operating a real estate business in Dubai?
Renew trade and brokerage licenses annually, maintain Ejari registration, ensure agents are RERA certified, and comply with local real estate laws.
