Why Start a Real Estate Business in Dubai?
Dubai’s real estate market is experiencing strong growth, with record-breaking transaction volumes and values in recent years. This positive trend suggests the potential for high returns and increased demand for real estate services.
Here are some key data points, graphs and stats about the booming real estate in Dubai:
Overall Transaction Volume and Value
January 2024 witnessed a record-breaking AED 35.4 billion ($9.6 billion) in real estate transactions, surpassing the previous record of AED 27.9 billion ($7.6 billion) in January 2023. This represents a 27% year-on-year increase in transaction value. Also, the total number of transactions in January 2024 reached 11,615, representing a 17% increase compared to 8,712 transactions in January 2023.
This graph clearly shows the significant increase in transaction value in January 2024 compared to previous years i.e. from January 2012 until 2024.
Additional Interesting Statistics:
Some other stats related to real estate in Dubai, that may interest you:
Property Type Preferences:
Apartments dominated the market with 91.7% of transactions, followed by hotel apartments (3.4%), land sales (1.9%), and office spaces (1.8%).
Buyer Preferences:
- 58% of potential buyers searched for apartments, while 42% were interested in villas/townhouses.
- 62.2% of tenants seeking apartments preferred furnished options, while 36.1% opted for unfurnished.
- In contrast, 57% of villa/townhouse tenants preferred unfurnished units, and 42% wanted furnished ones.
- Regarding unit size, 36% of tenants searched for one-bedroom apartments, followed by 31% for two-bedroom apartments and 22% for studios. In the villa/townhouse market, 43% sought three-bedroom units, while 34% sought four-bedroom units.
Top Areas:
- For apartment ownership: Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah were the most popular choices.
- For villa/townhouse ownership: Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hills were in high demand.
- For rentals: Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira were preferred for apartments, while Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim were popular for villas/townhouses.
What are the basic requirements for setting up a real estate business in Dubai?
Starting a Dubai real estate business? Here are the three basic things you need:
Licenses
Register your company and get RERA approval to operate as a broker. Secure a trade license, too.
Investment
You’ll need initial funds such as legal fees, licenses, rent, marketing, and other startup costs. Opening a local bank account would also need extra investment.
Know-how
Understand Dubai’s real estate market, laws, and regulations. Be good at communication, negotiation, and building relationships.
Planning & Reaching Out
Having a solid business plan and seeking professional advice will help you navigate the process and increase your chances of success.
What is the Cost of Opening a Real Estate Brokerage in Dubai?
Starting a real estate firm in Dubai requires a thoughtful consideration of various expenses.
Legal fees, registration costs, office space leasing, permissions, licenses, staff employment, and marketing charges contribute to the overall investment.
The location, workforce, and marketing significantly impact the precise cost, emphasizing the need for a comprehensive understanding of the local market and regulations before initiation.
Upon obtaining an RERA training certificate, the application process for an estate brokerage license commences. RERA charges AED 5,020 per activity, and the overall cost, including an LLC license, is approximately AED 21,000. (As of 2024)
What are the Benefits of Setting Up a Real Estate Business in Dubai?
- Rental Income: Dubai’s flourishing tourism industry ensures a steady demand for rental properties, offering a lucrative source of income for real estate businesses.
- Tax Advantages: Dubai’s tax-friendly environment allows real estate enterprises to enjoy 100% ownership without corporate or personal income taxes, enhancing overall profitability.
- Market Stability: Dubai’s real estate market exhibits resilience and stability, even during global economic fluctuations, providing a secure investment landscape.
- No Tax: The absence of corporate or income taxes in Dubai allows real estate businesses to operate without the financial burden associated with taxation.
- Appreciation in Property Value: The Dubai real estate market has a track record of consistent property value appreciation, providing opportunities for investors to realize substantial returns.
- Favorable Business Environment: Dubai actively promotes a business-friendly environment, encouraging innovation and entrepreneurship through supportive government policies.
- Growing Population: Dubai’s increasing population, driven by factors like immigration and economic growth, translates to a sustained demand for various real estate offerings.
- Property Visa: Dubai’s property visa allows real estate investors to reside in the country, providing added convenience for managing and overseeing their property investments.
- Stronger ROI (Return on Investment): The combination of tax advantages, market stability, and a growing economy contributes to a stronger return on investment for real estate ventures in Dubai.
- Amazing Infrastructure: Dubai’s world-class infrastructure, including cutting-edge facilities and transportation networks, creates an ideal environment for thriving real estate businesses.
So, How to Start a Real Estate Business in Dubai? A Step-By-Step Guide!
Whether in free trade zones or on the Dubai mainland, company registration for your real estate firm is mandatory. Here are the steps you need to follow:
1. Decide Legal Business Structure
Choose between a sole proprietorship or a Limited Liability Company (LLC) based on your business model and objectives.
2. Registering a Trading Name
Apply to the Department of Economic Development (DED) to have your trade name registered, along with the necessary documentation.
3. Preliminary Approval Request
Submit required documents, including passport and visa copies and attested degree certificates, to obtain a preliminary approval request receipt.
4. Approval From RERA
Enrol in a formal qualification from the Dubai Real Estate Institute, pass the RERA test, and secure approval.
5. Memorandum of Association (MoA)
Complete and sign the MoA and have it notarized and legalized by the court, depending on your company’s legal structure.
6. Choose Premises or Location
Secure office space, make tenancy arrangements if on rent, and obtain Ejari (tenancy contract).
7. Apply for a Real Estate Trade License
Before operating, obtain the Dubai real estate trade license.
8. Registration with RERA
Submit necessary paperwork to RERA, including application form, DED license copy, Ejari, payment receipt for RERA courses, and business location.
9. Registration with DNRD and MOL
Register with the Ministry of Labour (MOL) and the Department of Naturalization and Residency Dubai (DNRD) to hire foreign workers.
10. Approval from the Dubai Land Department
For the final step, the Dubai Land Department must approve the opening of your real estate brokerage.
Establishing a real estate business in Dubai involves careful planning, adherence to legal requirements, and a keen understanding of the local market. By navigating through these steps diligently, you position yourself for success in this thriving real estate industry.
Still, Have Concerns? Book a Free Consultation with an Expert!
If you still have questions or require further assistance on any aspect of starting a real estate business in Dubai, including legalities, feel free to reach out to Corp Creators.
Our team of experts is dedicated to providing comprehensive guidance and support, ensuring that your journey into the thriving Dubai real estate market is seamless and successful.
Remember, this is just the beginning! With careful planning, a deep understanding of the market, and the right guidance, you can unlock the doors to your Dubai real estate success story.
So, are you ready to build your property empire in the city of your dreams? Contact us today to address any inquiries and receive personalized assistance tailored to your specific needs.
