With several investors wanting to venture into the real estate business in Dubai, many are surfing to know the cost of opening a real estate brokerage, including the real estate license cost in Dubai. The real estate business is a hot-cake business with a 100% return on investment. Due to the world-class infrastructure and stable economy, foreign investors seek a way to settle in Dubai. This skyrockets the need for real estate in UAE to harbour a vast population of people flocking to Dubai.
Gaining awareness of the real estate license cost in Dubai brings you closer to initiating a real estate business in UAE. That means; familiarizing yourself with the cost of opening a brokerage firm in Dubai will propel you to start your brokerage firm, right? Starting a brokerage firm may compel you to acquaint yourself with little tidbits of information on how to go about it.
In this article, we will walk you through everything you need to know about real estate brokerage business and real estate license cost in Dubai. Therefore, you’ll need a real estate license, hiring agents, a business plan, and securing funds before setting up your brokerage firm in UAE.
Real Estate Brokerage Business in Dubai with 100% Ownership
Establishing a real estate brokerage enterprise in Dubai has taken a significant stride forward, thanks to the recent regulatory changes. Under the previous regulations, foreign investors were limited to a maximum ownership stake of 49%, with the remaining 51% mandated to be held by local Emiratis. However, the landscape has shifted, and Dubai’s government has implemented a groundbreaking policy alteration – permitting 100% foreign ownership of such ventures.
Despite this promising evolution, it’s surprising how some potential investors remain uninformed about these pivotal modifications. There lingers a sense of uncertainty and skepticism regarding the current legal framework governing real estate brokerage businesses. Uncertainty has led to misconceptions, with some even opining that achieving complete ownership of a real estate company in Dubai is an intricate and arduous endeavor.
The past scenario, where UAE residents retained exclusive ownership of real estate brokerage firms with full rights, indeed cast a shadow of hesitation among potential entrepreneurs, preventing them from embarking on such ventures.
However, this is a juncture that beckons for action, an opportune moment to seize the reins and establish your very own real estate agency within the vibrant realm of Dubai. The prospects for success are now more alluring than ever before, as the barriers to entry have been dismantled, allowing you to carve your path in this burgeoning industry without delay.
What Advantages Does Starting a Real Estate Brokerage in Dubai Offer?
There are numerous advantages to establishing a real estate brokerage enterprise in Dubai. In this context, we have outlined the key benefits.
1. Low-Income Tax
The topmost benefit of opening a real estate brokerage business in Dubai is that you have to pay a very low-income tax. Moreover, Dubai charges a 9% tax on a company’s profits if the revenue is more than 375,000.
2. High-Standard Lifestyle
Another advantage of running a real estate company in Dubai is that you may live a wealthy lifestyle. It’s also not just you who gets to experience it. You can also establish plans for your family. However, you will need to apply for a family visa.
3. Consistently Growing Economy
When you buy real estate, particularly abroad property, you are investing in more than simply a house or a plot of land. You are ultimately investing in the Dubai economy. And, because Dubai’s economy is continually increasing, starting a real estate brokerage firm in Dubai can only benefit you in the long term.
4. High Returns on Rents
In the Golden City, the rental return is at least 5.82%. That is precisely why Dubai is one of the top locations for property investors.
Furthermore, investors benefit from a steady and consistent cash flow. Second, the Dubai real estate market is expected to skyrocket in the next few years. So, now is the time to learn about the costs of establishing a real estate agency in Dubai.
Procedures for Initiating a Real Estate Brokerage in Dubai
When you know the right process, becoming a real estate broker in the UAE is straightforward. The subsequent instructions outline the necessary steps to gain a comprehensive understanding of becoming a real estate agent and obtain real estate agent license in Dubai:
1. Name Approval
You need to decide on a name for your real estate brokerage in Dubai. At a minimal fee, you have the option to select either an Arabic or an English name. The name must follow the guidelines put forth by the Department of Economic Development (DED).
2. Initial Approval + Tasheel
Obtain the necessary authorization from the Department of Economic Development (DED) and acquire the relevant documentation from Tasheel in order to commence a real estate brokerage in Dubai.
3. Memorandum of Association
At this stage, the Memorandum of Association (MOA) must be typed following the UAE commercial law and the Department of Economic Development (DED) protocols. Finally, notarising the MOA is crucial.
4. Real Estate Brokers Registration
To establish a real estate brokerage firm in Dubai, certification by the Real Estate Brokers Registration (RERA) is mandatory for the real estate broker or agent. It is crucial to undergo the RERA Exam and obtain the Broker ID.
Obtaining an RERA license in Dubai involves the following steps –
- Getting a residence visa under the company
- Apply for certified training with RERA for real estate brokers
- Attending the classes held at the opted RERA training centre
- Writing the RERA exam
- Obtaining the license and certification
5. Good Conduct Certificate
The Good Conduct Certificate is issued by Dubai Police and is intended for the Real Estate Regulatory Agency.
6. Dubai Land Department Approval
Opening a real estate brokerage in Dubai requires the Dubai Land Department’s (DLD) approval. The Dubai Land Department operates as the governing body tasked with supervising all aspects concerning real estate in the region.
7. Dubai Rented Office Space
According to the regulations of the Department of Economic Development, obtaining a real estate brokerage license from RERA in Dubai necessitates the rental of office space, which may include either a dedicated office or a space within a business center.
Cost of Obtaining a Real Estate Agent License Cost in Dubai
Establishing a real estate brokerage in Dubai necessitates obtaining a valid real estate brokerage license. If you opt for a Limited Liability Company (LLC) structure, the preliminary expense for acquiring this license is approximately AED 18,500.
Securing the license involves successfully passing the registration exam conducted by the Real Estate Regulatory Agency (RERA). It’s noteworthy that the exam fee is encompassed within the overall cost of setting up a real estate brokerage in Dubai. The exam fee, however, varies depending on your level of educational qualification.
The complete financial outlay associated with launching a real estate brokerage in Dubai is subject to fluctuation based on your specific business location and the nature of your intended operational activities. It’s important to recognize that the total costs can differ considerably as per these factors.
Unlocking the Lucrative Potential with Shuraa
In conclusion, venturing into the real estate brokerage business in Dubai presents a lucrative opportunity for investors seeking a high return on investment. To open a brokerage firm, familiarising yourself with the cost and procedures involved is essential.
The cost of opening a brokerage firm varies based on factors like location, business activities, and educational qualifications. If you need assistance in establishing a real estate firm in Dubai or elsewhere in the UAE, you can rely on the experienced business experts at Shuraa Business Setup.
At Shuraa, we offer free UAE business setup counselling and can guide you through every stage of the process. Schedule a consultation by calling +44 7538 205604 or reach out via WhatsApp at +44 7538 205604. For further assistance, send an email to email@example.com.