Over the past year, real estate prices in Dubai have jumped to 89%. According to property consultants, wealthy buyers are setting up their second homes in the lavish city of the UAE. Moreover, post-pandemic, there has been a significant upturn in the demand for properties and residential spaces in prominent areas of UAE such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, etc. The leading factor for this real estate boom in Dubai is the government’s liberal policies and approach to the handling of the pandemic. The residential values have hit a new high as wealthy investors are seeking homes to shield their valuable assets.
For the past couple of months, UAE has been bidding to become a global hub for property investments, rising against the gusts of inflation, supply chain issues, and geopolitical situations. As per the data from the Dubai Land Department (DLD), property sales this year are reported to be the highest in the last 13 years, attaining impressive real estate growth numbers. Further, it is only expected to grow in the coming months with the government’s real estate regulations and the hospitable environment of Dubai. Global tech giants are said to be coming out with new projects, physically and virtually supported by innovative technology and budding demand. This would enhance the ratio of quality buyers in the market and reduce the money risk factor for real estate firms, thus instigating a real estate boom in Dubai.
Nevertheless, it is never too late to pick a new dream and start a business in a foreign land. So, below are some of the major aspects to cover while starting a real estate business in Dubai.
Things to consider before setting up a real estate business in Dubai
Know the market
To become a successful real estate entrepreneur, you need to first study your market. Find the areas where you want to start your business and conduct deep research on the same. In addition, carry out physical scrutiny and explore the surroundings rather than just relying on virtual information. Also, engage with people who have great insights about day-to-day activities and livelihood in real estate.
Pick a business model
Investors, especially foreign nationals, need to choose their business model wisely. When you choose a free zone for your business establishment and complete ownership, it comes with several legal requirements and restrictions. Additionally, you might also need a partner with a local service agent to carry out trading activities in the UAE.
On the other hand, if you choose the mainland for your business setup, you do not just get 100% ownership of your company. You also get to choose local Service agents who act as a sponsor as well as conduct trade as per your command.
The experienced professionals of Shuraa can help you choose a suitable business model without any hassle and assist you in forming your real estate business effortlessly.
Complete the registration process
Once you decide on the type of business you wish to establish, you would need to register it. However, before registering your business, ensure to come up with a suitable trading name that goes well with your business activities.
For registration, submit your business documents to the Department of Economic Development(DED) in Dubai and receive a commercial license from the concerned governing body to conduct the purchase and sale of real estate properties.
Get your certifications and qualifications
Obtaining the relevant qualifications is one of the essential criteria for setting up a real estate business. Therefore, take the certification course, Certified Training for Real Estate Brokers, and an examination organized by the Dubai Real Estate Institute (DREI). This four-day training and assessment is a fundamental requirement for a real estate license in Dubai.
Apply for required company certifications
The Real Estate Regulatory Authority(RERA) issues licenses for real estate corporations. Hence, for setting up your real estate company successfully in Dubai, you will need to undertake a professional training course, post which RERA will approve and authorize your business.
Establish an office
Now that you have all the required certifications and qualifications in hand, you will need an office premise to carry out your business. physical office space is a necessity as it helps buyers reach out to you anytime. Also, it gives credibility to your business. So, make sure to look up good and appropriate locations for your office. Additionally, you can either purchase or rent an office space in Dubai as per your preference.
Outsource your services
When you set up a real estate firm in Dubai, try outsourcing some of your operations. In simple words, hire a reputed agency to take care of your business operations, such as accounting, bookkeeping, sales, marketing, etc. Since hiring full-time staff can cost you a lot, outsourcing activities to agencies can help you spend your money wisely.
See through the client’s perspective
Usually, in a real estate business, you would want to seal a deal quickly to make some instant money. However, this idea of making quick commissions can affect you in the long run.
The prime motto of every real estate business owner is to understand the needs of the clients and help them find the right property. So, in order to get good deals, it is important that you offer what is required by the customers. This would further help you build an excellent customer experience and establish your brand in the market.
Update yourself with the latest trends
Dubai’s competitive market is ever-growing, and every proprietor must stay ahead of the curve. Therefore, it is mandatory to stay aware of the new laws and amendments in the real estate market structure. In addition, keep up with your competitor's strengths, what are they offering, their new initiatives and how ahead are they of you.
Basic requirements for starting a real estate business in Dubai
- Business name approval
- Initial approval
- Memorandum of Association (MOA) and Local Service Agreement(LSA)
- Details of the UAE partner/sponsor
- Real Estate Brokers Registration Services
- Certificate of Good Conduct
- Approval from the Dubai Land Department
- The lease agreement of the rented office space
- Passport copies of the owner and partners, if any
- No Objection Certificate (for expat partners)
- UAE visa/entry permit
Procedure to set up a real estate company in Dubai
Undoubtedly, the real estate boom in Dubai is due to the endless opportunities available in the Dubai housing market. Moreover, Dubai Free zones are the most preferred choice for foreign entrepreneurs when it comes to starting a business. So, anyone who wills to set up a real estate buying and selling company in Dubai needs to follow the below procedure –
- Determine the legal structure of the business
- Register a business name
- Acquire preliminary approval
- Seek approval from RERA
- Draft the MOA and LSA
- Choose location and office premises
- Apply for a real estate license
You can also visit : Start Your Consulting Business In The UAE.
Conclusion
Hence, it is proved that starting a real estate company in Dubai can be fruitful and worth the investment. The ever-growing market and incredible opportunities are the major factors behind the real estate boom in Dubai. Besides, it helps you learn more about people, community issues, business life, and the impact of government, probably more than any other profession.
So, brace yourself and get going to launch your own real estate firm on Dubai soil. All you need is proper planning and the right guidance. Shuraa Business Setup holds the expertise to establish all kinds of businesses in Dubai and across the UAE. Our in-house skilled professionals are well-experienced in dealing with licensing, documentation, banking, and other procedure required for starting a business. Thus, you will be able to concentrate on building the backbone of your company.
So, connect with our team right now.
Call: +918010990022
Email: [email protected]
