When you think of a massive metropolis that generates a steady income through real estate due to its modern infrastructure, technology and innovation, Dubai might be the first city that comes to your mind.
The city has attracted investment in real estate from the biggest multinationals around the world, opening a wide door of opportunities for business in the real estate industry.
How To Open A Real Estate Brokerage In Dubai?
The real estate brokerage firms are usually set up in Dubai Mainland. And setting up a business in the mainland requires a local sponsor holding a 51% stake providing them 100% ownership of your company.
This measure is taken by the government to prevent the absconding of expats with the huge amounts from transactions. However, the government has taken several steps to ensure no violation of the investors' rights.
The Emirati holds 100% ownership of the company whereas the investor holds 100% power of attorney, 100% decision making power and complete operational control of the company, said and sealed with proper documentation.
The steps you need to follow to start a Real Estate Brokerage in Dubai:
- Choose the name for your company and register it as per the DED guidelines
- Obtain the initial approval and Tasheel from the Department Of Economic Development (DED).
- Type the Memorandum Of Association (MOA) as per the UAE Law and Notarize it
- Find a suitable and trustworthy Local Partner for your business
- Obtain a Real Estate Brokers Registration Services (RERA Services) certification
- Get the good conduct certificate from the Dubai Police
- Obtain the Dubai Land Department(DLD) Approval
- Rent A Office Space
Once all the above steps are completed successfully, you can set up your Real Estate brokerage business in Dubai.
What Is The Investment Required?
The investment required to set up a real estate brokerage involves a lot of factors that includes the location and activities of the business.
The cost also varies based on the education qualification. The exam fee for RERA registration for investors with no education is AED 15 750, for investors with no bachelors’ degree is AED 6 300 and for investors with bachelors’ degree is AED 3 200.
The RERA further charges AED 5 020 per activity. After obtaining the RERA license, the cost for a real estate brokerage license is around AED 12,950. The overall cost leads to an approximate value of 21 000.
While the real estate market gives so much room for growth and success it is necessary to understand that there are a lot of competitors in the industry at the same time.