The real estate business is one of the most thriving businesses in Dubai right now. With the advanced infrastructure, powerful climate, and vibrant economy, Dubai seems to skyrocket in terms of enabling more business opportunities. Therefore, How to Start a Real Estate Business in Dubai investment has been in the limelight for edges and several entrepreneurs including Chinese nationals are investing in the real estate business in Dubai.
However, how do you establish a profitable real estate business in the UAE? Read on to find some solid nuggets on how to start a real estate business right now in Dubai.
- Conduct a market research
- Select your real estate business model
- Register your real estate company
- Acquire your professional skills
- Find a space for your business
- Outsource other real estate services
- Market your real estate business
That said; Dubai gets a bigger portion of its revenue from real estate businesses. Meaning, this is the right time to jumpstart your real estate business in the UAE without looking back. Yes, starting a real estate business is quite costly. In this article, you’ll also learn the cost of starting a real estate company in Dubai.
Apart from that, we’ve documented some of the common questions about the real estate business you might want to know before delving much into the business. They include;
- How much does a real estate agent make in Dubai?
- What are the documents required to register a license for Real-Estate Business in Dubai?
- Which business entities can be registered to carry out real estate business in Dubai?
Having the above points in mind will help you map out a strategic move on how to execute your real estate business. And so, the UAE authorities have are also trying to make real estate business proactive by endorsing things such as trade licenses, easy mode of payments, visa applications, and e-channel services to help investors carry out their business activities online without visiting offices for their documents registration and approval.
So, before we discuss how to start a real estate business in the UAE, it is advisable to acquaint yourself with the following to help you in your real estate business journey.
Let’s dive in;
How much does it cost to start a real estate company in Dubai?
Usually, the cost of opening a real estate company in Dubai is roughly 21,000 AED. Additionally, opening a real estate business is accompanied by the licensing application. It is needless to say the cost of obtaining an estate brokerage license, especially for an LLC company is roughly 12,950 AED.
On top of that, RERA is the one responsible for some real estate charges in Dubai. That means; the cost RERA charges per real estate activity are usually AED 5,020. Therefore, immediately, you get RERA certification, you can execute your trade licensing application without any problem.
How much does a real estate agent make in Dubai?
How much a real estate agent in Dubai make in Dubai does solely depends on the job title or position one is holding? Their earnings might defer a great deal. However, a Real estate broker can make roughly AED 45,500.
Which business entities can be registered to carry out real estate business in Dubai?
As much as there are various business entities you can engage in. Real estate business on the other hand compels you to join an entity that is compatible with their business structure.
Therefore, there are only two business entities in Dubai you are permitted to register your real estate business. They include;
- Limited Liability Company (LLC)
- Sole Proprietorship
Thus, ensure you understand some of the legal instructions passed through in Dubai for one to start a real estate business. You might be put behind bars for not complying with Dubai policies as far as the real estate business is concerned.
Also read: How to Start a Cleaning Company in Dubai
What are the documents required to register a license for Real-Estate Business in Dubai?
A trade license is one of the salient documents business investors ought to apply before fully executing their business agenda. Therefore, you can obtain your real estate trading license from the Department of Economic Development in Dubai, commonly known as DED.
DED recommends having the following documents in-store when registering a real-estate business;
- Ejari tenancy contract
- Passport copies
- Valid UAE resident visa
- Signed LSA and MoA
- Final application form
- Passport copies of the shareholder and the owner
The above pointers might help you to map out your real estate business before its launch. Now you have all the nitty-gritty to set up your real estate business, what steps do you need to start a real estate business in Dubai?
Let’s find out:
How to Start a Real Estate Business in Dubai
If you want to start a real estate business this year, we got you covered. Read on to find out some of the solid steps you should take to enhance the success of your real estate business in Dubai.
Conduct a market research
Conducting market research is a free ticket to a successful business. Generally, market research will help you identify your target client, competition in the industry, and the stronghold ideas to execute to beat your competitors.
There are several real estate companies in Dubai doing well. Meaning, without conducting in-depth market research, you won’t spot what they are doing and not pop out through the clutter.
So, the first step is to do background market research to identify the market trend in your industry.
Select your real estate business model
After you are done with the market research, which business model will you embrace? You are not bounded to which one to choose. However, ensure to choose an entity that is permitted in Dubai.
For instance, you can select either a Limited Liability Company or Sole Proprietorship model for your real estate business. These are the only model you can register your real estate business within Dubai. Once you are done selecting a business model for your business, move to the next step.
Register your real estate company
Now you are either running an LLC real estate or a Sole Proprietorship business, right? To make your brand known in Dubai, you must register your company to obtain full ownership, that’s if you’re starting your company in a Free Zone in Dubai.
Thus, registering your real estate company involves even the trade name of your business. In this case, submit relevant documents to the Department of Economic Development in Dubai to get your company and name approved.
Note most of the applications can be done via the UAE e-channel portal. You need not visit offices physically to get your application done and approved.
Acquire your professional skills
Starting a real estate business requires you to have certain qualifications for this business. And so, entrepreneurs who are looking forward to opening a real estate business must be certified. In addition, they must pass through training institutes to learn the details needed in the real estate business.
Thus, professional qualifications in the real estate business are the salient features required when applying for a real estate trade license.
Find a space for your business
Immediately you have the required certifications for running a real estate business, you’ll be compelled to set up an office for your business. An office accords your credibility and gives your client an ample opportunity to meet and discuss their business needs with you.
Therefore, consider looking for a strategic location having in mind your audience and competition as well.
Once you have set up an office for your real estate business, you’ll need to outsource some services in your office. For instance, you’ll want to hire full-time employees, accounting services, and more. But that is not enough; connecting with other people globally will enhance the growth of your business.
So, ensure you market your real estate business through social media channels such as Quora, Twitter, Facebook, and Instagram among others.
However, this entire process can be a heart-wrenching endeavor; we at Vigor Business set up in Dubai helps clients reach their desired goal by helping them where to acquire the legal documents to set up a business in Dubai. Feel free to reach us for a business setup in Dubai.