The real estate business in Dubai is an excellent choice. It is among the best investment options available globally due to its high and relatively stable value. In total, 52,415 investors purchased 72,207 new homes in the emirate. Furthermore, 2021 recorded 84,772 real estate transactions worth AED 300 billion. Impressive, isn’t it?
The United Arab Emirates, whose commercial capital is Dubai, is one of the world’s wealthiest and most developed economies, with a highly dynamic and forward-thinking business culture characterised by continuous development and progress. Despite the Covid-19 pandemic, it successfully hosted the recently concluded Expo 2022 Dubai, demonstrating this to the rest of the world. All of this makes it enticing for entrepreneurs, especially for the real estate sector.
So if you are looking to start a real estate business in the city of Dubai, continue reading. This blog will teach you all you require to establish a real estate business in Dubai.
What Are the Benefits of the Real Estate Business in Dubai?
For the reasons listed below, you can make money by starting a real estate business in Dubai:
1. Steadily Growing Economy
One of Dubai’s most significant advantages of investing in real estate is that its economy has been expanding rapidly. The UAE is named one of the top 3 innovative economies in Northern Africa and Western Asia by the Global Innovation Index. You are not just investing in that particular property or piece of land when it comes to real estate, especially overseas real estate. You are also investing in the nation’s economy.
Dubai’s real estate market has recently demonstrated upward mobility, with approximately 43,000 sales transactions totalling more than Dh114. 5 billion, putting it on track for the best first-half performance ever.
2. Continuous Improvement and Development
Dubai is regarded as the most innovative city in the world. One of the most significant benefits of purchasing real estate in Dubai is that there is always something to do. Visit a city where innovation is still practised and encouraged by the Dubai government; it will be the best choice you’ve ever made.
3. No Real Estate Tax
Once you have bought a house and paid the registration cost to the Dubai Land Department, you are free of additional tax obligations because there is no property tax in Dubai. It offers diversification, tax breaks, and high yields. Consequently, the tax-free status attracts a large number of entrepreneurs and investors.
4. Visa for Real Estate
Investors who own property in Dubai can now apply for a property visa. To apply, you simply need to ensure that you meet the visa requirements. You can apply for a Dubai resident visa after receiving the property visa. In this manner, you can apply for two types of visas in Dubai.
5. Geographical Area
Dubai has the advantage of being at the geographic centre of the universe. It has taken leverage by providing easy access to key regional and global growth markets. It is the business hub of Western Asia on the Persian Gulf’s coast. Because this city connects worlds, investing here will never be a waste of money.
Why Would You Want to Invest in Dubai Real Estate?
Dubai’s real estate sector has one of the highest yields in the world, outperforming markets such as London and New York. According to the Dubai Land Department’s annual transaction report, the emirate saw a 65% increase in the number of real estate transactions and a 71% increase in value last year compared to 2020. (DLD). Moreover, transactions in the sector totalled AED 16.2 billion in September 2021, the highest monthly total in the previous eight years.
These numbers offer an optimistic view of the future of real estate in Dubai. Combined with the benefits, they provide more than enough rationale to invest in the sector.
Why Is Local UAE Ownership of a Real Estate Brokerage Company in Dubai Required?
Property brokers in the UAE can fully own their businesses now that this economic activity has been removed from the “restricted list.”
To run a real estate business, the local broker will take on additional financial and managerial responsibilities. Brokers also oversee agent education and training to improve and maintain professionalism and service standards. This gives them more authority and influence than a real estate agent in Dubai when resolving disputes and problems in a real estate transaction.
However, The UAE recently changed its investor visa rules for real estate assets, allowing owners of Dh750,000 properties to obtain three-year visas. For the previous two years, the threshold was Dh1 million.
What Documents Do You Require to Start a Real Estate Business in Dubai?
Businesses in the UAE must adhere to the documentation standards established by government agencies. To begin a real estate business in the UAE, the following are some documents that must be submitted:
- A copy of your passport
- Passport-size photographs
- A copy of your entry visa
Shuraa UK Branch’s setup specialists can provide you with a detailed document list based on your real estate business.
How to Start a Real Estate Business in Dubai?
The following procedure needs to be considered when you want a real estate business setup in Dubai, it includes:
- Choosing a Business Structure
- Choose a Business Model
- Get your qualifications by clearing the RERA examinations
- Calculating the associated costs
- Obtaining a local sponsor
- Establish a personal office
- Outsource specific services
What Is the Cost of Establishing a Real Estate Business in Dubai?
A real estate brokerage license is required to launch a real estate firm in Dubai. AED 53,950 is an LLC’s estimated real estate license cost in Dubai.
You must also pass the Real Estate Regulatory Agency’s registration exam (RERA) to obtain the license. Depending on your degree of education, the exam fee included in the price of opening a real estate brokerage in Dubai varies. Furthermore, the overall cost of starting a real estate company in Dubai varies depending on your location and planned business operations.
Set Up Your Real Estate Business with Shuraa
Due to the fantastic market potential and expanding investments in the area, starting a real estate business in Dubai may be successful. With the proper guidance, you may begin working on your business strategy. You can establish your real estate business in the Dubai market with the help of the Shuraa UK Branch.
Our knowledgeable advisors assist you at every stage with paperwork, banking, licensing, and so on, so you can focus on building the foundation of your firm. Over the last few years, we have helped several aspiring business owners in Dubai carve out a niche in the real estate industry. Contact our business consultants right away!