The real estate market of the UAE continues to give impressive returns on investment irrespective of the various roadblocks the world has seen in the past few years. Be it brokerage firms, property consultancy, or construction business – all have lucrative opportunities in Dubai. Setting up a real estate business in Dubai is straightforward and highly profitable when done the right way. All you need to do is get in touch with the business consultants in Dubai, and they’ll take care of the rest.
Table Of Contents
Steps to start a real estate company in the UAE
Follow the steps mentioned below to set up your real estate company in the UAE:
1. Reserve a trading name
You need to reserve a legal trading name if you want to set up a real estate company in Dubai. Sometimes, you get name hints from the various business activities involved in your real estate enterprise. You can also reserve a person’s name as the official name of your company but ensure that you use the full name. Refrain from using derogatory terms, words that are insulting or controversial, etc., to avoid legal action.
2. Decide the location
What’s your target market? Do you want to explore Dubai’s local marketplace or form your real estate company in a free zone? The location of your business plays a vital role as various areas come with a unique set of advantages and limitations. Therefore, the best approach is to get in touch with the business experts in Dubai who’ll assess your business activities and suggest a location that fits within your budget.
3. Draft the MoA and LSA
Once you’re done with the above steps, you can draft the MoA and LSA documents for setting up your real estate business in Dubai. The LSA (local sponsor agreement) is applicable when you’re partnering with a local agent to open your company in the mainland. All these factors also impact the overall cost of setting up a real estate business in Dubai.
4. Acquire the business license
If you’re proceeding with a mainland company establishment, you must approach the DED for your real estate license. On the other hand, if it’s a free zone formation, you can get in touch with the governing authority of that free zone and obtain your license. Registration with RERA (Real Estate Regulatory Agency) is mandatory once you receive the business license.
5. Open a bank account and manage visas
Once you’re done with all the approvals and paperwork, it’s time to open a bank account for managing the monetary transactions of your real estate business in Dubai. Finally, apply for visas and you’re done. You can now run a full-fledged real estate company in the UAE.
Benefits of Starting a Real Estate Business in Dubai
1. Safe investment
The real estate business is considered to be a safe investment in Dubai. It has three different aspects:
- Safety of residents and tourists: Dubai is a safe city to live in. It has a very low crime rate. The place is highly regulated by strict laws and monitoring for the safety of people. Such a safe environment allows investors to come and invest. It gives the opportunity to real estate businesses to get more clients regularly.
- Safety of business: Dubai government has taken various initiatives to support foreign investors who want to start a business in Dubai. Moreover, they support expat entrepreneurs and this instills confidence in them and provides a sense of security.
- Safety of property: all the transactions related to real estate are regulated by the Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD). Furthermore, they have transparent and precise rules which ensure that the investors are aware of every relevant information.
2. Property visa
The option of acquiring a property visa is now available for investors who own a property in Dubai. To apply, all you need to ensure is that you are fulfilling the required criteria for the visa. Once you acquire the visa, you can also apply for a residence visa in Dubai. This way, you get the opportunity to get two types of visas in Dubai.
3. No property tax
There’s no property tax in Dubai. This implies that after you have purchased a property and paid the processing fee to the DLD, you don’t have to pay any additional government taxes or surcharges. Furthermore, Dubai’s zero-tax system encourages numerous investors and entrepreneurs to set up a business in the heart of the UAE. These policies have a sizable impact In the long run as you continue to save money as you progress with your real estate business in Dubai.
4. High rate of return
Dubai has a rental rate of return of around 5.82 percent, making it one of the top sites for property investors in the world. We can confidently say that this business provides a decent income, and the future projections also confirm the same.
5. Growing economy with a growing population
A critical factor to consider when purchasing real estate anywhere in the world is the economic growth of the place and whether growth has been strong in the past years or not. The economy of Dubai has traversed a path of aggressive yet sustainable growth, which has opened the gates for a wide range of opportunities, including the real estate business. Moreover, Dubai is a city with diverse cultures where people come from different countries. Therefore, as people continue to find their business and residential homes in the UAE, the demand for real estate business automatically increases.
Things to Consider While Starting a Real Estate Business in Dubai
- Dubai’s real estate market is always on the rise. It’s essential to stay updated with the new laws and regulations introduced in the industry. In Dubai, real property laws are continuously changing, and new projects are introduced time and again. Businessmen must be mindful and respond to these changes quickly to make the most of these opportunities.
- You should know your market in which you are dealing. It’s advisable to physically visit and explore the areas in which you are interested to deal. Furthermore, it’ll provide you satisfaction and a clear overview of the market.
- The real estate business works on customer satisfaction. Therefore, you should always provide premium quality service to your clients. A happy client will bring more prospects to your doorsteps. You can avoid a deal for short-term gains and focus on an offering that benefits in the long run.
Documents Required
- Passport size photographs of the applicant
- Duly filled application form
- Copies of passport (owner and all shareholders)
- In case of an LLC formation, a copy of the local sponsor’s Emirates ID
- Notarized MoA and LSA documents
- Tourist visa of the applicant
- Eljari number (tenancy contract) specifying the rental space agreement
- Approval from Dubai Land Department
Connect with Shuraa
Shuraa Business Setup is a one-stop solution to all your business formation needs. Be it the paperwork, office space, additional approvals, etc., – we got you covered. Our legal advisors do all the heavy lifting for you while you take a comfortable back seat. Connect with us to launch your real estate business in Dubai today.
To book a free consultation, call on +971 44081900. Send us a WhatsApp message on +971 50 777 5554 for chat assistance. You can also write to us at info@shuraa.com for any email queries.
You May Also Like it: https://www.shuraa.com/blog/category/business-setup