With the influx of several investors wanting to venture into the real estate business in Dubai; lots of them are surfing to know the cost of opening a real estate brokerage in Dubai. Indeed, the real estate business is a hot-cake type of business in UAE with a 100% return on investment. Due to the world-class infrastructure, stable economy, and sunny climate, foreign investors are seeking their way to settle in Dubai. So, this skyrockets the need for real estate in UAE to harbor a vast population of people flocking in Dubai and its environment.
As the demand for real estate increases, the cost for opening a real estate brokerage in Dubai starts from AED 21, 000. FINRA will need you to have at least $100,000. And, in case they reserve your firm, they may require $150, 000 in the capital. Additionally, the real estate brokerage license for the LLC is roughly AED 12, 950, and you’ll be ready to set your brokerage business in UAE up and running.
Knowing the cost of opening a real estate brokerage in Dubai is a step close to the real estate business setup in UAE. That means; familiarizing yourself with the cost of opening a brokerage firm in Dubai will ultimately propel you to start your brokerage firm, right? And, so, starting a brokerage firm might compel you to acquaint yourself with little tidbits of information on how to go about it.
In this article, I will walk you through everything you need to know about the real estate brokerage business in Dubai apart from the starting cost. Therefore, some of the things you’ll need before setting up your brokerage firm in UAE are real estate license, hiring agents, business plan, and securing funds among others.
However, there are other tenets the UAE authority will need you to have to be fully eligible for this business. If you find you cannot retrieve the documents needed, always seek help from an expert business setup consultant in Dubai. And, so, to get a detailed understanding of real estate brokerage, you’ll learn the following in this article, the difference between real estate agent and real estate broker, how much does it cost for a real estate business license in a free zone, and how to start a real estate business in Dubai.
Let’s get started;
What is the Difference Between a Real Estate Agent and Real Estate Broker?
Oftentimes, these words are used interchangeably. And when used, the majorities get it wrong when relating to the certain business and agents they want to deal with. So, in this post, you’ll understand what the terms mean and use them correctly and in their proper context.
Real Estate Broker
In most cases, real estate brokers are involved in the legal duties for the entire real estate transaction practices done either by the Dubai real estate, or by individuals themselves. Apart from this, a broker takes the full onus of other additional management and financial responsibility needed to run the whole process successfully.
Similarly, in the real estate industry, brokers normally go through thorough and intensive training. Because of their position in the industry, they are expected to strictly obey higher business standards compared to the real estate agents in Dubai.
Additionally, brokers can also supervise, employ and legally establish other duties to be given to the real estate agents. Compared to a real estate agent, brokers can overseas the educational and training of the agents, so that they can be responsible in their business conduct.
Real Estate Agent
Real estate agents usually work directly for a broker in Dubai. In addition, they only execute their agenda under the supervision of the brokers. That means; In Dubai, a real estate agent cannot work without the help of a broker in this field. A broker must be there to initiate the whole process.
In the same vein, since a broker is more skilled, a real estate agent ought to pay some fee to them, so that they can work closely with brokers. The fee is always used to cater for office space used by the brokerages. As if that is not enough, when a real estate agent gets a commission, they can give a portion of it to the brokerage.
How much does it cost for a real estate business license in a free zone
When you decide to set a brokerage company, an estimated cost of a real estate business license in a free zone is AED 15,000 – AED 25,000. Generally, the cost for a real estate business license in a free zone is not always high as others might presume.
Most of the free zones are tax-free and offer a business-friendly environment for both foreign investors and the Dubai homes-based business owners.
How to start a Real Estate Business in Dubai?
Starting a real estate business in Dubai can be a great move for you. With all the quality features incorporated in Dubai, one can experience a productive business environment. However, before you start your brokerage firm in UAE, you’ll be required to adhere to certain principles listed below;
Get to know the Real Estate Market in Dubai
This ought to be your first move before jumpstarting your real estate business journey. Primarily, you’ll want to consider the prolific and productiveness of the place you are setting up your firm. That means; get to know how the real estate business market is in Dubai and gauge the most targeted places you can rely on.
Don’t just lean on the online information, conduct thorough research to get the whole information you need for your business setup.
Select a Business Model
Selecting a business model is another critical part when starting a real estate business in Dubai. You’ll be required to choose a business model that suits your business properly. Therefore, a business model can be either complete ownership, partnership, or an LLC form of business.
Get your Company Registered
After you have decided on your business activity, your business model, you’ll want to register your business now in Dubai. Similarly, you’ll be forced to come up with an awesome trade name for your business when you’re in the registration process.
Therefore, in this stage, you will submit your documents to the DED in the UAE. Once your documents are verified, you’ll get a license that will help you conduct your business setup in Dubai.
Other processes you’ll need to undertake for your real estate business set up to be successful in Dubai includes;
- Get your business qualification
- Apply for other important company certifications
- Get a professional office
- Outsource other services that suit your business model.