Dubai is the centerpiece of modern infrastructure and a sprawling metropolis. Dubai real estate employs the most cutting-edge expertise and technology in the world. It also provides consistent investment, attracting the world's largest multinational corporations.
As a result, there are numerous business opportunities in Dubai's real estate industry. Many investors are interested in learning how to obtain a real estate licence in Dubai. This article focuses on the costs of establishing a real estate brokerage in Dubai.
However, it is also important to understand the requirements. Dubai's real estate sector is expanding, which is why opening a real estate brokerage in Dubai is in high demand. Opening a real estate brokerage in Dubai, like anywhere else in the world, necessitates obtaining a licence, developing a business plan, securing funds, and hiring agents.
But, there are some additional requirements that are only found in Dubai, UAE, so it's better and more cost-effective to work with the local business experts at Dhanguard, who provide end-to-end business assistance by doing all the heavy lifting for you.
Why is it necessary to have 100 percent UAE local ownership in a real estate brokerage business in Dubai?
Mainland businesses in Dubai are required by law to assign a 51 percent partnership to a UAE national. In order to operate a real estate brokerage business in Dubai, you must give a UAE national 100 percent ownership.
- It may appear that giving a UAE national 100 percent ownership is risky. However, the UAE commercial law and the RERA, which is the regulatory arm of the Dubai Land Department, aim to provide the investor with complete security.
- Establishing a real estate brokerage business in Dubai entails a large number of transactions. There have been cases where expat investors have gone missing with large sums of money or have abused the licence. As a result, in order to have complete control, a UAE national is given 100 percent ownership.
- The establishment of a real estate brokerage business in Dubai is designed to protect the interests of the investors. The Emirati is given 100 percent ownership, and the investor becomes the company's manager. The investor is given full power of attorney over the company. The investor is also given complete operational ownership, as well as complete control over the company, with proper documentation.
Steps to Initiating a Real Estate Agency in Dubai
When you follow the right steps, becoming a real estate broker in the UAE is fairly simple. To learn how to become a real estate agent in Dubai, follow the steps outlined below
Approval of a Name
You must choose a name for your Dubai real estate brokerage. For a small fee, you can select any Arabic or English name. The name must adhere to the guidelines established by the Department of Economic Development (DED).
Initial Approval + Tasheel
To begin a real estate brokerage in Dubai, obtain preliminary approval from the Department of Economic Development (DED) and the necessary documentation from Tasheel.
Memorandum of Association
At this point, the Memorandum of Association (MOA) must be typed in accordance with UAE commercial law and the protocols of the Department of Economic Development (DED). The importance of noting the MOA cannot be overstated.
Local partner in the UAE
One needs to have a local partner in UAE before starting their Real Estate Business in UAE.
What is Real Estate?
Here's everything you need to know about becoming a real estate agent in Dubai with the help of a local sponsor. To start a real estate brokerage in Dubai, you must partner with a UAE national and give him 100 percent ownership.
You can engage in corporate sponsorship in Dubai by partnering with a reliable and trustworthy local partner. You may seek documentation such as an Investor's Right Protection Contract or the company's Power of Attorney, which appoints you as manager and gives you 100 percent operational ownership of the company.
Services for Real Estate Broker Registration (RERA Services)
The real estate broker or agent must be certified by the Real Estate Brokers Association in order to open a real estate brokerage in Dubai. Registration is required (RERA). It is mandatory to apply for the RERA Exam and obtain a Broker ID.
The following steps are required for RERA certification:
- Obtaining a residence visa through the company
- Applying for RERA-certified real estate broker training
- Attending classes at the RERA training centre of choice
- Taking the RERA exam
- Top ten fastest growing businesses in Dubai, UAE by 2021
- Obtaining the necessary licenses and certifications
Certificate of Good Conduct
Dubai Police issues the Good Conduct Certificate to the Real Estate Regulatory Agency.
Approval from the Dubai Land Department
The Dubai Land Department must approve the establishment of a real estate brokerage in Dubai (DLD). The Dubai Land Department is the government agency in charge of all real estate matters in the region.
Office Space for Rent in Dubai
According to the regulations of the Department of Economic Development, all real estate brokerage licenses issued by RERA in Dubai require a rented office space or even an office in a business centre.
The Cost of Establishing a Real Estate Brokerage in Dubai
The cost of obtaining a real estate brokerage licence in Dubai is determined by several factors, including location and business activities.
The cost of the RERA registration exam is determined by the educational qualifications. The exam fee is AED 3,200 for bachelor degree holders and AED 6,300 for non-bachelor degree holders. The fee for applicants with no educational qualifications is AED 15,750. RERA charges a fee of AED 5,020 per activity.
After obtaining an RERA training certificate, licence processing can begin. A real estate brokerage licence for an LLC costs around AED 12,950.
The approximate cost of establishing a real estate company in Dubai begins at AED 21,000. This cost will vary depending on the other activities chosen as well as government fees.
The Essential Step to Begin a Real Estate Business in Dubai and the UAE
The procedures outlined below can be used to register a real estate company in Dubai.
- Acceptance of a Name
- Tasheel + Initial Approval
- Association Memorandum
- Local partner in the UAE
- Estate Brokers Registration Services approval (RERA)
- Certificate of Good Conduct
- Approval from the Dubai Land Department
- Office Space for Rent in Dubai
Conclusion
Still have questions about how to start a real estate company in Dubai or elsewhere in the UAE? Do you need to know about RERA's certified real estate broker training? Or are you looking for information on how to apply for an RERA licence in Dubai?
Do you have any reservations about any of the steps involved in becoming a real estate agent in Dubai? If you have any questions about establishing a real estate company in the UAE or any other business sector, please contact our professional business consultants.
We provide free UAE company formation consultation at Dhanguard. We assist you with all aspects of business setup in the UAE and assist you in taking the first steps in your entrepreneurial journey.