The real estate market in Dubai is booming, it provides a diverse array of investment opportunities. An increase in demand for housing, and office spaces, and the increase in the arrival of tourists and ex-pats all contribute to the growing demand for real estate in Dubai. Dubai has a multicultural workforce, which provides businesses with an extensive pool of skills and expertise to choose from.
According to the reforms in UAE legislation, it is now possible for expatriates or foreign nationals to establish a Real Estate business setup in Dubai with complete ownership. It’s the right time for setting up a real estate business in Dubai.
Real Estate Sector Growth in Dubai
In 2022, the emirate recorded 122,658 real estate transactions, indicating a surge of 44.7 percent from the previous year. The expansion happening in this real estate business setup in Dubai highlights the increasing demand as a crucial gateway for accessing opportunities in some of the rapidly developing economies of the world.
The newly launched Economic agenda D33 outlines an overall economic goal of AED32tn($8.7tn) to be achieved within the next decade. The exceptional accomplishments of the real estate industry are a testament to the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum Vice president, prime minister, and Ruler of Dubai, who envisioned making Dubai among the top three cities globally and working towards it.
Benefits of Real Estate Company Setup in Dubai
Dubai has witnessed consistent growth in the Real Estate industry and is the most lucrative property market in the world. There are many positives offered by the real estate market in Dubai:
- Strong Economic Growth: The Dubai has a business-friendly economy that is strong and growing. Even the government is supportive and committed to bringing a robust economy.
- Diversified Market: The market is vast and diverse to start a real estate company setup in Dubai. These include luxury villas and apartments, commercial property, and industrial warehouses. student accommodation, etc.
- Substantial returns: Dubai has a thriving economy that could give you an impressive return on your investment, this made Dubai an attractive investment destination for both local and foreign investors.
- Well-established legal and regulatory mechanisms: It is easy for businesses to function in Dubai and manage the legal requirements of starting and conducting real estate business.
The documents recommended by DED when registering a license for a real estate business in Dubai:
- Ejari tenancy contract
- Passport copies
- Signed LSA and MoA
- Final application form
- Shareholder’s and owner’s passport copies.
What are the Steps in the Real Estate Business Setup in Dubai?
After getting to know the documents to submit, let us see the steps to involve in real estate setup in Dubai.
1. Market Research
Conducting market research will help to understand the background and competitors, and clients to be targeted. To stand out among the competitors it is important to have an in-depth knowledge of the market.
2. Registration
It is necessary to register your company to gain full ownership after deciding on the trade name. You will need to obtain a certification from Real Estate Regulatory Agency(RERA), which is the regulatory body responsible for overseeing the real estate industry in Dubai.
3. Obtain a License
To obtain the final real estate license from the officials, it is necessary to comply RERA with approvals to maintain the real estate license and also you need tenancy contract, passport copies, and trade name.
Once you receive the payment voucher from the department of Economy and Tourism(DET). After the payment is done, DET will provide the license.
4. Physical Office
As per the guidelines of the Department Of Economy and Tourism(DET), you need to have a physical office space in Dubai to get a real estate brokerage license.
The cost of acquiring a real estate brokerage permit could vary depending on the factors such as company size, location, and business activities. Also, you pay for the certification. You can also visit the Branch office in Dubai for additional information.
Dubai Real Estate Laws
The list real estate developers should stick to some laws that are:
- It is compulsory to secure a license before becoming a real estate developer.
- It is essential to give comprehensive information about their projects such as size, location, type, and other relevant factors.
- Developers are obligated to have a trust account, which is similar to an escrow account.
The list real estate brokers should follow are:
- There is training for brokers to work in Dubai as a mandatory requirement.
- To gain the license, passing a RERA exam is necessary.
- There are a set of guidelines to follow while handling different clients.
The real estate law regarding ownership for expats
- In Dubai, it is possible for non-UAE citizens to possess real estate properties, but only in specific regions known as freehold areas, as per the real estate regulations in Dubai.
- If you are a foreigner who plans to enter the real estate market of Dubai for the first time, it is important to understand the difference between freehold and leasehold properties.
- Another factor to know is that you have the opportunity to obtain a residence visa in Dubai without the need for a sponsor through the Golden Visa program, which is renewable.
1. Three Broker Rule
To address the problem of duplicate listings in the Dubai real estate market, a new law was introduced that limits the sellers to list their properties with a maximum of three brokers.
The main aim of this initiative is to tackle the issue when sellers contacted multiple brokers who then listed the same property on various platforms, resulting in a significant number of duplicate listings.
2. Dubai Strata Law
Strata law is a significant real estate regulation in Dubai that pertains to multi-unit developments such as townhouses and apartments.
The main principle of this law is based on the concept of dividing a property into individually owned units and commonly owned areas, which are then managed by an owners association.
3. Using a Conveyancer
Dubai real estate industry is generally perceived as secure for both buyers and sellers, it is advisable to engage the services of a conveyancer to effectively navigate the complex process involved in property transactions.
The role of the conveyancer includes supervising the legal transaction, drafting, scrutinizing the terms of a contract as well as fulfilling various financial, legal, and other administrative obligations that could be difficult for someone without professional knowledge and expertise.
RERA (Real Estate Regulatory Authority)
RERA is a government agency that manages the real estate sector in Dubai, the governmental Dubai Land Department. RERA aims to increase foreign investments in Dubai’s real estate sector, while this agency has its own financial and administrative autonomy that operates with complete legal authority to control the real estate sector.
To enable all the stakeholders to engage in real estate market, RERA make sure transparency and efficiency in the legal framework.
Dubai Business Activities Approved By Real Estate Regulatory Authority(RERA)
The scope for growth and expansion of this business activity in the UAE is huge and unbounded, both now and in long term.RERA mainly oversees and regulates the following categories of real estate operations.
- Real estate buying & selling.
- Real estate consultancies
- Real estate survey services
- Real estate valuation services
- Real estate development
- Real estate training institute
- Real estate exhibition organizing
- Real estate management supervision services
- Real estate buying and selling brokerage
Conclusion
It is absolutely a rewarding venture to operate a real estate business in Dubai for entrepreneurs. The outstanding infrastructure and favorable environment to live, and work in make Dubai an attractive place for millions.
However, the process of business setup in Dubai mainland could be a little complex but we could help to make your dream a reality.