Wealthy Russians and citizens of many countries worldwide are showing interest in real estate in the UAE. The city, which has become an oasis of political stability and economic prosperity, attracts with its high standard of living and the possibility of profitable investments. Foreigners are eager to open their own business, for example, a real estate agency in Dubai. This allows them to live and work in the city of their dreams legally.
We analyzed information from open sources. This article does not constitute legal advice. Do you want to know how to open a real estate agency in Dubai, what documents will be needed, and how long it will take? Dynasty Business Adviser specialists will help you.
Why Is a Real Estate Agency in Dubai a Profitable Business?
The high economic growth rates in the region are especially noticeable against the background of crises and stagnation in many countries of the world. According to the D33 program, achieving the Dubai 2040 strategic development plan is possible seven years faster.
The growth of the UAE economy is contributing to an increase in the number of jobs and increased labor migration. The forecasted population increase of 2 million people by 2030 has caused strong growth in the real estate market. Residential properties are selling quickly, as well as commercial and industrial spaces. Realtors see good prospects for business development since their databases are filled with clients from many countries.
Business areas developed by companies in this segment include the following:
- Realtor services for the purchase, sale, and rental of objects for various purposes.
- Development, launch, and support of specialized sites for selecting real estate options online.
- Creation of a management company that manages residential and industrial complexes and provides technical maintenance of communications and engineering structures for life support of residential complexes.
- Cleaning, repair, design, maid services.
Even though registering such companies in Dubai is more expensive than in other emirates, most non-resident investors focus here. Active competition stimulates business development, and a growing market provides opportunities for prosperity to all its participants.
How to Obtain a Real Estate Business License in Dubai
A non-resident who wants to become an operator of this market must officially register a company. The operation of an enterprise in this area does not require a cash deposit. Creating a company allows founders, employees, and members of their families to obtain a residence visa (with confirmation of a sufficient level of family income).
RERA, an official division of the city’s Land Department, regulates the companies. It deals with the following activities:
- Assigning registration numbers to real estate agencies.
- Training their owners and staff in specialized courses.
- Issuance of work licenses.
UAE legislation supports investors. The market, where vast transactions are made daily, is protected from abuse.
Procedure for Registering a Real Estate Agency in Dubai
Now, we’ll tell you how to open a company in Dubai on your own. The business creation algorithm includes the following:
- Trade name confirmations. The founder must create a unique name and obtain approval from the city’s Ministry of Economy.
- Submitting a preliminary application. You must fill out a standard application form, attach a photo of the founder, a copy of the required passport pages, and other documents to obtain permission from the authorities.
- RERA Approvals. You won’t be able to open a real estate company without attending specialized RERA (Real Estate Regulatory Agency) courses and passing a test. Obtaining a certificate allows you to move on.
- Preparation of constituent documents. A businessman, having secured the approval of the city authorities and a RERA certificate, can begin preparing the company’s memorandum of association. If there is more than one founder (LLC status), it must be supplemented with a partnership agreement. You also need to find a respectable office and sign a lease agreement.
IMPORTANT: the rental agreement must be registered through the Ejari system. You can do this online or in tiling centers. The responsibility for technical registration of the document rests with the owner, and the tenant must pay for it.
- Obtaining a license from DED. The prepared package of documents is submitted to the Department of Economic Development of the Emirate (DED). This will become the basis for obtaining a license for services. Its cost is approximately 25,000 dirhams.
- Registrations with RERA. A license allows the agency to register with RERA and receive a registration certificate. You will need a complete package of documents for the company to do this.
- Registrations with the DNRD and the Ministry of Labor. Only companies registered with the Dubai Department of Naturalization and Residency and the Ministry of Labor can hire personnel.
The final stage is receiving a broker card. Ensure that agency staff have RERA brokerage cards.
Time Frame for Opening a Real Estate Agency in Dubai
The growing interest of non-residents in investing in the real estate market has caused delays in the last two years in registering a company and obtaining approval, license, and registration number. We did an analysis showing that in 2023, opening a company took 3 to 4 months. Professional, comprehensive support from experienced lawyers can speed up the procedure.
A Package of Documents Required to Open a Real Estate Agency
An essential condition for quickly completing the procedures for legalizing a business related to real estate is the correct execution and timely submission of documents. So, to register a company with RERA, you must provide the following documents:
- RERA application form.
- A copy of the DED license.
- Document confirming payment for the permit.
- RERA training certificate.
- Office rental agreement with registration in Ejari.
Remember the location map.
Cost for Opening a Real Estate Agency in Dubai
The approximate cost of registering a legal entity in the summer of 2023 was $20,000. This amount includes the following expenses:
- Trade license — $4500.
- RERA certificate — $1500.
- The founder’s residence visa is $1,500.
- Work visa for an employee — $1500.
- Emirates ID — $550.
- Agency name reservation — $150.
- Notary services for certification of the charter — $200.
- Enterprise immigration card — $200.
- Fees for obtaining work quotas — $760.
- Payment for DED services — $2700.
- Payment for consulting support — $6,500.
If you want to relocate to Dubai, consider opening a real estate agency. This segment of the economy shows high growth rates. Prices for residential and commercial properties are rising rapidly, increasing the profitability of investments. There is currently no more dynamic market in the United Arab Emirates. Take a closer look at it and make up your mind. Consulting services for Dynasty Business Adviser managers will help you quickly start your business in Dubai.
