Irrespective of the recent decline in the market, the real estate industry in Dubai remains one of the most profitable all over the world. It is widely known to yield over 6% as opposed to 4.4% in London and 4% in New York. Such high returns make Dubai a real goldmine for real estate investors from all over the world. As a result, there’s a high demand for real estate-related services such as brokerage and property development. In this piece, we will explain all you need to know to start a real estate business in Dubai.
No matter what kind of real estate business you’re trying to start, there are a set of steps you must take before applying for a license. First, you’ll have to describe your business activity in full details as this determines the kind of services you’re permitted to offer. There are many real estate-related activities you could offer, that’s why you must ensure that you’re getting licensed for the exact activities you wish to offer as services.
The next step after this is to choose a company name. This should be done while bearing it in mind that the UAE has a few strict rules guiding the business names. Your chosen company name must not contain any offensive or blasphemous language or refer to any popular organization. If the business name has your personal name in it, you must make sure that is without abbreviations of any sort. Also, you must check to confirm that the name is still available to be registered.
Then, you must decide whether to establish your business on the mainland or in one of the numerous free zones. Free zones like the Fujairah Creative City offer benefits such as tax exemptions and zero currency restrictions. The mainland allows you to directly trade with the UAE and take on government contracts if need be. If you find these decisions hard to make, it is advised that you employ the services of reputable company formation experts such as Business IncorporationZone (BIZ) to help you out.
With your business name and activities decided, you can now proceed to apply for your license. If you wish to carry out brokerage or property management-related activities, you’d be required to get a professional services license. You can apply directly to the Department of Economic Development (DED) or any of the available free zones. Free zones are known to be the most cost-effective way to start a real estate business. They come with many benefits including zero percent personal income tax and 100% exemption from customs tax. However, to be able to trade in real estate, you are required to pass the Certified Training for Real Estate Brokers course with the Real Estate Regulatory Authority (RERA). If you pass this satisfactorily, you will be granted a permit and, can then begin operations.
The cost of obtaining your real estate license depends on a host of other factors, but startup costs are known to be affordable. For example, if you decide to set up in Fujairah Creative City free zone, getting a real estate license is between AED 15,000 – AED 25,000. This free zone also offers a lot of benefits that aid expansion, these benefits include desk space, mail services, internet, and phone use.
In conclusion, for you to ensure the best outcomes when starting your company, it is best that you get a company formation expert to do the work for you. This allows you to concentrate on what you know how to do best.