How to Start a Real Estate Business in Dubai?
There’s no doubt that real estate is an excellent investment because of its high and consistent value. It’s hard to think of a better destination to invest in real estate than Dubai.
The United Arab Emirates’ economic center is located in Dubai.
Dubai’s fast growth has made it one of the most sought-after investment destinations in the world. For example, the Burj Khalifa — the world’s tallest skyscraper — and Dubai’s Marina101 and Princess Tower are well-known for their magnificence. Dubai’s real estate industry is exploding. The real estate market in Dubai has attracted 38,318 international investors who have made 51,553 new investments totaling more than AED99 billion ($53 billion) in 2022.
Dubai’s booming real estate market offers one of the best returns when compared to other well-known cities and countries. E-Government services have also made the process of acquiring certificates and corporate licenses, as well as making payments and obtaining visas, significantly more convenient than they were in the past.
If you’re looking to start a real estate business in Dubai, there are a few key things you need to know. In this blog post, we’ll outline the basics of setting up a real estate company in Dubai and getting started in the industry. So, whether you’re a seasoned pro or new to the game, read on for everything you need to know!
Real Estate Business Benefits in Dubai
Dubai’s real estate industry is one of the highest-yielding marketplaces in the world, beating cities such as London and New York.
The Dubai real estate market is now seeing a resurgence in customer and investor interest, and it is heading on the path of sustainable, long-term growth.
Here are some of the most notable benefits of starting a real estate business in Dubai:
1. High Returns
Annual returns of 5 percent or more are typical in Dubai’s real estate market, which continues to give substantial returns to investors.
2. Diverse Market
The real estate market in Dubai is expansive and diverse, providing chances to invest in residential, commercial, student housing, luxury property, hotel units, and industrial units, among others.
3. Transparency of Regulation System
Because the legal system in Dubai is so well recognized and transparent, you may feel confident in your financial choices.
4. Global Market
The Dubai real estate market is famously competitive and invites involvement from anybody, including foreign investors.
5. Rental Yields
Dubai has a rental return of at least 5.80%, making it one of the greatest destinations in the world for property investors. So, if you want to start a real estate business in Dubai, keep in mind the increased rental income that a real estate investment in the Emirates of Dubai will bring.
6. Growing Economy
When investing in real estate, and especially when purchasing property in a foreign nation. You are investing in more than simply the land or property that you currently own. You are also contributing to the nation’s economic growth. When seeking to acquire real estate anywhere in the world, one of the most important aspects to consider is the level and pace of economic growth in the area in question, as well as the rate of growth over the last few years.
7. Safe and Secure
The tremendous sense of safety one experiences in Dubai is pretty remarkable. This is one reason why we feel it is safe for them to relocate to Dubai and start their new lives there. Dubai has retained its reputation as the most stable city in the MENA region, despite the fact that many other countries in the Middle East region have experienced and are now suffering a significant amount of political instability.
8. No Tax
Due to the absence of a property tax in Dubai, after you have acquired real estate and paid the registration fee to the Dubai Land Department, you will never be required to pay any further kind of government tax on your property.
Due to the absence of taxes in Dubai, the city is attracting a rising number of enterprises and investors.
9. UAE Property Visa
The chance to qualify for a resident visa based on the purchase of a home in Dubai is the most significant benefit you will enjoy if you decide to invest in real estate in Dubai. Nonetheless, you will be required to meet extremely certain requirements. In order to acquire your house, it must be worth at least one million UAE Dirhams, you must have a mortgage on it, and it must be in fine living condition.
How to Get a Real Estate Business License in Dubai?
If you’re interested in operating a real estate business in Dubai and want to know how to apply for a RERA license in Dubai, you’ve come to the correct spot. Your strong work ethic and an optimistic outlook are undeniable attributes that will propel you to the top of the Dubai real estate market, where you want to be.
Obtaining a license from the Real Estate Regulatory Authority is the first step to becoming a successful real estate agent in Dubai (RERA). To qualify for a RERA license, it is necessary to pass the RERA examination and get the certification.
At the end of the training, which usually lasts four days, you will know everything you need to know to legally work as a real estate agent in Dubai. After you finish a training course in Dubai, you have to pass a test given by the Real Estate Regulatory Agency (RERA).
RERA License Cost in UAE
Your current level of education will determine how much you will have to pay for your RERA license. The price to take the test is AED 3,200, and it is discounted if you already have a bachelor’s degree. It will cost you an additional 6,300 AED if you do not have a bachelor’s degree.
You will need to consider the price of completing a RERA training course in addition to the fees connected with taking the test itself. These may be purchased for anywhere between AED 2,500 and AED 3,500 on average.
Steps to Start a Real Estate Business in Dubai
Setting up a real estate business in Dubai can be lucrative, but it’s important to understand the process and procedure involved. We will outline some of the key steps you need to take in order to get your business off the ground in Dubai.
Step 01: Define Your Business Activity
After completing your market research, what kind of business strategy do you want to implement? There are no restrictions on your ability to choose either choice. However, you must be cautious while selecting a law company that may function in Dubai.
For example, if you choose to enter the real estate market, you may organize your business as a sole proprietorship or a limited liability corporation. This is the only legal structure that will let you to form a real estate company in Dubai. After selecting a business model for your organization, go to the next step.
Step 02: Choose Your Company Name
When selecting a name for a corporation, it is essential that the name represent the organization’s strengths. For instance, AJ Shah Real Estate LLC would be a suitable name for the business.
In addition, the UAE imposes limits on the language and terms used in corporate names. You may not use any language that is in any manner offensive, derogatory, or blasphemous.
Step 03: Choose your desired business location
Real estate businesses wishing to establish a presence in Dubai may do so in one of three economic jurisdictions: the mainland, the free zone, or the offshore. Each has its own set of restrictions for doing business, as well as benefits and drawbacks. When choosing a jurisdiction, you must consider the nature of your business, the closeness of your office to your target market, and the location of your market.
- Dubai World Trade Centre Free Zone
- Dubai South Free Zone
- Dubai Silicon Oasis Free Zone
- Dubai Multi Commodities Centre (DMCC Free Zone)
- Jebel Ali (JAFZA Free Zone)
- Dubai Airport Free Zone Authority (DAFZA Free Zone)
- Dubai Studio City (DSC Free Zone)
Step 04: Prepare your required documents
- A filled-out and signed application
- Develop an enterprise strategy
- Passport copies of the investor, as well as all shareholders and management
- Original NOC certificate
Step 05: Apply for UAE Visa
If neither you nor your workers are residents of Dubai, you may need to submit applications for visas for your employees and family members at the same time as you submit your application for a visa for yourself.
Step 06: Opening bank account
The last step is to open a corporate bank account in order to carry out transactions and receive payments regarding your business.
Real Estate Business is Profitable in Dubai?
Due to its favorable location, Dubai is regarded as the geographic center of the whole world. This advantage has been fully leveraged by Dubai, which gives quick access to vital regional as well as worldwide development markets. Along the Persian Gulf’s coast lies what will become the commercial hub of western Asia. People respect one another’s dignity, and commercial relationships are honest and fair.
If it is now obvious that Dubai’s economy is the most robust of all, in the middle of a pandemic, it had ups and downs, but it has recovered to its normal trajectory and is anticipated to have a thriving economy in the next years. People who invest in Dubai real estate obtain returns that significantly exceed their expectations.
As a consequence of its opulent infrastructure and lifestyle, Dubai is swiftly ascending to the top of the list of global cities. Everyone who desires to be a successful businessperson should immediately invest in Dubai’s real estate industry.
How Airzone can help set up your real estate business in UAE?
At Airzone, we assist businesses in establishing a foundation in the United Arab Emirates by locating the best service. It is easier to get started if you contact us right away. We can connect you with the right service providers to assist you in growing your business in the UAE.
We can connect you with our trusted partners who can assist you in registering a new company and obtaining a RERA license in the UAE. While you focus on growing your business, we’ll put you in touch with the proper individuals to handle everything from visa applications to critical administrative tasks.
Since the advent of freehold property enabling foreigners to purchase property in the Emirates, the Dubai Real Estate market has been profitable. Many investors choose to participate in real estate via the establishment of real estate firms rather than through the establishment of construction companies, which entails significant financial outlay and additional administrative burden in the form of licensing requirements. Contact Airzone, and allow us to aid you in your plan to start a real estate business in Dubai.
If you want to learn more about how to set up a business in Dubai, we have a comprehensive guide for you. With a thorough understanding of the UAE’s business scene, you should be well prepared to establish a company in the country.