The real estate market is driving the UAE Economy. It contributes 14% of Dubai’s GDP which makes the real estate business in the United Arab Emirates one of the most exciting business ventures, mainly because of the booming market, modern infrastructural setup, and supportive regulations. One needs to understand licenses, requirements, and the many benefits of this market to navigate through its setup process successfully. Here’s a concise guide for you to get started.
JBC, Jitendra Business Consultants, helps you set up your real estate business in UAE seamlessly and quickly.
What are the key steps to Establish Your Real Estate Business?
- Write a Business Plan
Specify your objectives, research the market, and set out your budget. A good business plan is indispensable for attracting investors and for the long-term viability of your business.
- Decide on a Business Location
Whether to be located on the mainland or in a free zone. Free zones may be attractive due to tax incentives but could limit your business to particular activities or areas.
- Choose a Legal Structure
You can decide among sole proprietorship, partnership, or a limited liability company. Your choice has liability, taxation, and flexibility in terms of carrying out business activities.
- Register Trade Name
Submit the name chosen for the proposed venture to the Department of Economic Development (DED) and make sure there is uniqueness in the name. The guidelines governing naming should be followed.
- Obtain the Required Documents
Documents usually required for licensing include a valid passport, RERA certifications, proof of office space, and a recommendation letter.
- Obtain RERA Certification
Attend the required training course for real estate brokers at the Dubai Real Estate Institute. One must pass the RERA exam to get his brokerage license.
- Obtain Licenses
You could depend on the trade license, a real estate brokerage license, or Ejari registration, depending upon your business. Each license serves as a regulation compliance in the UAE.
- Office Setup
Find a space for a physical office and sign up for an Ejari-registered tenancy contract. A business office is highly professional and also gives credibility to your business venture.
- Business Bank Account Opening
Open a separate account to cater for all the financial transactions of your company. This is also required to obtain employee visas.
- Employ Staff and Start a Business
Employ qualified staff and apply for their work visas. Qualified staff will help you manage and expand your business efficiently.
Types of Licenses You Require
Trade License: It is issued by the DED. This is required to run a legal business.
Real Estate Brokerage License: You can purchase, sell, and rent real estate.
Ejari Registration: It is required for dealing with tenancy contracts.
Property Management License: For companies which deal with the maintenance of the property and also with the tenant.
Developer’s License: To develop land
Benefits of Establishing a Real Estate Business in the UAE
- Excellent Return on Investment
The ROI in the real estate market in the UAE is excellent due to high demand and high-value properties.
- Strong Location
Located in the cradle of Europe, Asia, and Africa, the UAE offers an easy gateway to world clients and investors.
- Advanced Infrastructure
Superior transport, utilities, and communication structures make business performance smooth.
- Attractive Tax Regimes
There is no personal income tax, while corporations have no exception from tax.
- Eased Procedural Methods
The United Arab Emirates government provides smooth e-services for licensing, certification, and visa applications.
Costs Involved
The real estate business requires the following costs:
Trade License costs
Office Lease costs per year
RERA Certification costs
Marketing and Advertising costs
All these costs will be well paid off by the returns and the opportunities in the market.
UAE Real Estate Market Opportunities
- Property Brokerage
Assist clients in buying, selling, or renting properties. This requires negotiation skills and knowledge of the market.
- Property Management
Manage apartments or commercial spaces for property owners. Services offered include rent collection, maintenance, and tenant handling.
- Land Development
Purchase and develop vacant land for eventual residential, commercial, or combined-use developments- requires a higher level of experience in planning as well as development.
- Property Agencies
Be a middleman for property sale or purchase. The commission is received after a successful deal.
Why Choose Jitendra Business Consultants?
Opening and operating a business in real estate is one of the most rewarding ventures; however, it can only be successful if individuals understand the process of licensing in the UAE and seize the opportunities available. Our experts at JBC help you do all of this, from opening a new business to availing every possible advantage. Our expert business consultants are masters in their field.