How to set up a real estate brokerage company in Dubai

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With world-class infrastructure, technological developments, business investments, and trading opportunities, Dubai is a hotbed for foreign investments. The breathtaking skylines, an excellent infrastructure, world-famous monuments and properties as well as renowned shopping festivals make Dubai an ideal destination for property investors.

Owing to the factors stated above, Dubai is now emerging as one of the global leaders in the real estate market and generates a higher return on investment (ROI) than other prominent cities in the world.

As per the August 2022 report, the real estate market recorded on an average Dh1.4 billion sales transactions in a single day.

The recent introduction of the golden visa scheme for real estate investors and buyers who invest in or purchase property worth Dh2 million has increased the popularity of Dubai properties. The 10-year residence permit stimulates real estate investments, making Dubai ideal for buyers compared to any other metropolitan city.

The real estate business in the UAE has changed drastically and shifted its focus to the long-term investment option. As residential and off-properties gain equal traction in the current market, it would tend to increase apace in the upcoming years of the succession of visa waivers in the country.

The regulations that came into effect in 2022 allow more foreign investors to purchase property in the emirate. The government has made the overall process more seamless, attracting international property buyers and offering e-services for licensing, registration, ownership, and buying and selling properties.

Actually, it involves procedures and documentation to set up a real estate brokerage company in Dubai.

As per the Department for Economy and Tourism (DET), there are several steps for setting up a real estate business. With Ascent Partners, our experts will take you through the process hassle-free.

Legal structure

As per the UAE legislation, you can form a real estate brokerage company under the full ownership of a UAE national, and the investor has 100 per cent power of attorney over the company with total control of the functioning and operations of the company.

The licence to set up your real estate brokerage business differs based on your business model.

Local sponsor in company formation

A certified local sponsor/agent is crucial for collaborating in the real estate brokerage business setup. Local agents facilitate a smooth business function concerning government authorities and municipalities by accomplishing various official formalities for the company.

It would be challenging to find a reliable local sponsor for a first-time investor with an insufficient business network in Dubai. With professional and experienced business setup experts from Ascent Partners, you can find a local sponsor in Dubai for your business.

Choose a trade name and jurisdiction

You might already be familiar with the trade name guidelines in the country.

Regarding the jurisdiction, there are three jurisdictions: mainland, freezone, and offshore. You can choose a jurisdiction based on your business model, location, and accessibility. Are you confused about the jurisdiction? You can get assistance from one of the leading business setup professionals at Ascent Partners.

Completing the registration process

Upon deciding the type of company, you wish to set up, you duly complete the registration process.

You will also be required to submit your business documents to the Department of Economic Development. The governing body will grant you a commercial license to conduct operations and buy and sell real estate.

Applying for a DET Licence

You must submit the MOA, RERA approval, tenancy contract, etc., to receive the real estate licence from the authorities. You can make your application either directly to the Department of Economy and Tourism (DET) or to one of the free zones.

The Dubai Real Estate Regulatory Authority or the Estate Brokers Registration Services issues licenses for establishing a real estate business.

Rera registration

To register your real estate company with Rera, you must submit the following documents:

· Rera application form

· DED business licence copy

· Payment receipt

· RERA course certificate

· Tenancy control/Ejari copy

· Location map

Broker's card

To become a real estate agent, you must register with state-level regulatory authorities. You must get Certified Training for Real Estate Brokers issued by the Real Estate Regulatory Agency (Rera). You get certification by attending a four-day training session and clearing the subsequent exam.

The real estate agent employed by the company must be a holder of the broker's card issued by Rera.

Office space

According to the Department of Economic Development rules, you must have leased office space in a business center to get a real estate brokerage licence.

Even if you set up your own real estate business, you can outsource some of your operations, such as your accounting services, to cut costs and set up your business efficiently. The cost of getting a real estate brokerage licence depends on factors such as your business activities, company size, and location. In addition to that, you should pay for the certification.

Conclusion

The real estate market has been generating about 5.5% of overall gross domestic product (GDP) annually, making it one of the most lucrative business setup options in the UAE. It is an excellent investment for those interested in earning profits in this sector.