The real estate industry is one of the most rewarding economic sectors in Dubai, as great numbers of foreign investors and citizens relocating here for different reasons need to buy or rent real estate to operate as companies, respectively to live in. Many investors decide to invest in real estate not by opening construction companies which involve a lot of money and more hassle when it comes to the licensing procedures, but by setting up real estate companies through which they can sell or rent properties in Dubai.
Steps for Opening a Real Estate Business
Following are the basic steps for opening a real estate company in Dubai Mainland:
Step 1: Establish the location of your real estate company. There are certain areas within the country that are designated “free zones.” Lower regulations in these areas tend to attract businesses. For example, while most businesses are required to be 51 percent owned by a United Arab Emirates (UAE) national, the ownership can be 100 percent in a free zone.
Step 2: Establish the type of business organization. In Dubai, there are seven categories of business organization. These are general partnership, partnership en-commendam, joint venture, public shareholding, private shareholding, limited liability, and share partnership.
Step 3: Complete the mandatory training course necessary for a real estate license through Real Estate Regulatory Agency (RERA). If you have a college degree, you will take the Real Estate Certified Practitioner’s Training Course. Without a degree, you will register for the Real Estate Executive Diploma Program.
Step 4: Set up your professional office. This includes an actual office space with a landline phone (not just a cell phone). These things, along with your real estate license through RERA and your commercial license with Dubai.
Type of Structure for the Real Estate Company in Dubai
There are several types of business forms which can be employed for setting up a Dubai real estate business. The choice belongs to the future owner and it depends on how large the company will be. The preferred types of structures are:
- The sole proprietorship;
- The limited liability company;
- The civil company;
- The free zone establishment.
Tips for Property Agency Agents in Dubai
- Stay ahead of the curve:The property market in Dubai is constantly changing. It’s important to keep up to date with the latest laws and rules in the current market. Real estate laws in Dubai are also constantly changing and new initiatives are launched every day. Agents must be aware of these changes and adapt to them.
- Put yourself in the clients’ shoes:A deal must never be made just to get make a quick commission. Agents should always try to make a sale that is as per the client’s needs. This will help agents in the long run as they will get more referrals and as a result, be successful in the Dubai real estate market.
- Know your market:To be successful, agents must know everything there is about the areas they are dealing with. Karan advises that visiting and exploring the neighborhood physically and talking to people who live there is a great way to get to know about the place.
How to Get Started?
The first step to setting up any business in the UAE including one based in the property or real estate sector is to do some market research. A great place to start is to link up with other people in the real estate or property industry who can give you essential feedback on your ideas, their feasibility, and the industry in general. Obtain industry reports, monitor local newspapers and consider attending an industry conference or exhibition. A lot of information can be obtained on-line, but make sure you verify this with a trusted local contact such as Riz & Mona Consultancy.
Start to develop a business and marketing plan, taking into consideration realistic costs and timeframes. And talk to an expert in the region who has in-depth knowledge on how to set up a business in real estate. They can give you a realistic perspective on setting up a business in the Gulf. The experts at Riz & Mona have formed over 100+ Limited Liability Companies, Representative Offices and Branch Offices and specialize in providing foreign investors with advice on the most efficient and profitable way to set up your business in Dubai, Abu Dhabi .