Why Dubai’s Property Market is Blowing Up
Dubai’s real estate market is red hot right now, emerging from the massive economic downturn brought on by the Coronavirus pandemic. Foreign investors and travelers hoping to avoid lockdowns are spurring an enormous buying frenzy that is creating a record-breaking market. This explosive market is helping the nation make progress towards financial recovery.
Dubai became one of the first locations in the Emirates to reopen to visitors, causing a massive influx of tourists and investors seeking business opportunities. Luxury Villas and golf estates are some of the most popular options among this real estate boom, with buyers from Europe and Asia purchasing these properties in droves.
Following proper social distancing and enacting a thorough vaccination program, the region has continued operating normally, with restaurants, stores, and hotels open to the public and very limited restrictions.
This boom has reinvigorated Dubai’s stagnant real estate business, allowing its economy to recover to pre-Covid levels. In fact, sales of properties valued at over 10 million Dirhams have increased by 6.7 percent in April of 2021. So, if you’re thinking about business setup in Dubai, there has never been a better time!
Setting up a Real Estate Business in Dubai? Here’s What You Need to Know
If you’ve given serious thought to forming a real estate business, there are several essential steps you’ll need to take to get started. We’ve listed these steps below to help you along the way.
1. Understand the Market
One of the most crucial aspects of operating a successful real estate business is understanding the market in your chosen location. Having digital statistics and information about your area is great, but you’ll also need to get to know the neighborhood physically. By introducing yourself to other property owners, you can gain valuable information that may help potential clients and your overall business.
2. Choose a Legal Structure for Your Company
Foreign investors will need to choose a legal structure for their new endeavor. This structure will determine how the company functions, including how it uses its assets, profits, and losses. These companies can take the form of:
• Professional Company
A professional company performs service-related business activities. These companies are usually formed by skilled individuals that hold professional degrees.
• Limited Liability Company
A Limited Liability Company (LLC) is a business structure with a single owner solely responsible for any profits or losses incurred during business operations.
3. Register a Trade name for Your Real Estate
At this point, you’ll need to apply for a trade name through the Department of Economic Development (DED). Your name may not be previously claimed by another company and may not include profanity.
4. Secure the Necessary Qualifications
An essential aspect of forming a successful real estate company in Dubai is to obtain the necessary qualifications. Real Estate brokers and agents must secure the qualifications issued by the Dubai Real Estate Institute (DREI). The Certified Training for Real Estate Brokers program is a four-day training course followed by an exam offered by the Real Estate Regulatory Agency (RERA).
5. Establish a Professional Office
Once you’ve attained your license, it’s time to arrange your office space. A physical office offers authority and will give potential customers the ability to reach you. Finding a good office location can leave lasting impressions on your customers and do wonders for your business.
6. Hiring Additional Services
Managing a real estate company can be a full-time career. Therefore, outsourcing some of the more menial responsibilities to office managers, accountants, and more. By subcontracting out this work, you can save money and focus on your most important responsibilities.
7. Sympathize with Potential Clients
Once you’ve become licensed and start making deals, it may seem lucrative to concentrate on quick deals and commissions. However, spending time with clients and helping them will do far more to help your business in the long run. Don’t forget that your client base is everything! Without them, you’ll quickly be out of business.
8. Stay Up to Date with the Latest Trends
The real estate market in Dubai is constantly evolving. This can make forecasting conditions difficult at times, but also allows the field to remain competitive. You will need to keep a close watch on competitors, their movements, and the latest trends in the industry.
The Cost of Forming a Real Estate Brokerage in Dubai
The fees for securing your real estate brokerage license can fluctuate based on several factors, including your company size, location, and chosen activities. Despite the varying prices, startup costs for a real estate license remain low.
The RERA registration exam cost will vary depending on your education level. For bachelor degree holders, the fee is AED 3,200, or just a little over US$870. But for those that have no prior educational degree, the price is AED 15,750, or US$4288.
A brokerage license will run roughly AED 12,950, or US$3,500.
With all fees and costs accounted for, the approximate final cost for real estate company formation in Dubai comes to roughly AED 21,000, or roughly $5,700. These rates are highly affordable for foreign investors hoping to find business opportunities in the UAE.
MSZ is Your Number One Choice in Business Consultancy!
Forming a Dubai real estate business can seem like a complicated endeavor. Despite it being engineered for a streamlined examination and approval process, the journey to get your business up and running can be daunting to handle along. But you are certainly not alone!
MSZ Consultancy aims to be your one-stop-shop for any business in the UAE. From company formations to visa applications, our expert team of consultants possesses the skill and experience to help you navigate the UAE business world! With our help, you can easily apply for licensing, secure PRO services, and even initiate a new business in one of Dubai’s many Free Zones.
It doesn’t matter whether you’re a new investor or a part of a large corporation; we have the power to help you minimize the red tape while maximizing profits. We have proudly served companies in the oil and gas industries, construction, media, healthcare, and more. Give us a call today at +971 52 544 1248 for a free consultation! The best time to start your new business was yesterday. The second best time is today!