What is the cost of opening a real estate brokerage in Dubai?
Dubai is the epitome of a modern infrastructure and massive metropolis. Real estate in Dubai applies the world’s most innovative expertise and technology. It also offers steady investment attracting the biggest multinationals from around the world. This is why there are a lot of business opportunities in Dubai’ real estate industry.
Many investors want to know how to get real estate license in Dubai or are willing to open a real estate brokerage in the region.
This article concentrates on the cost of opening a real estate brokerage in Dubai. But, it is good to understand the requirements as well. Dubai’s real estate sector continues to grow, which is why opening a real estate brokerage in Dubai is tremendously in demand.
Opening a real estate brokerage in Dubai requires acquiring a license, having a business plan, securing funds and hiring agents like anywhere else in the world. However, there are some additional requirements exclusively found in the Dubai UAE.
Why do you need a 100% UAE local ownership for real estate brokerage business in Dubai?
Mainland businesses in Dubai have a legal norm of assigning 51% partnership to a UAE local. Real estate brokerage business in Dubai requires you to give 100% ownership to a UAE national.
- 100% ownership to a UAE national may sound uncertain. But the UAE commercial law and the RERA which is the regulatory arm of Dubai Land Department aims at offering complete security to the Investor.
- Setting up a real estate brokerage business in Dubai involves large amount of transactions. There are cases when expat investors abscond with huge sums or misuse the license. Hence, to have complete control 100% ownership is given to a UAE national.
- The setup of a real estate brokerage business in Dubai, is structured at safeguarding the interest of the investors. The Emirati is given 100% ownership and the investor becomes the manager of the company. The investor is given 100% Power of Attorney to the company. The investor is also given complete operational ownership with total control over the company is given to the investor with proper documentation.
Steps of starting a real estate brokerage in Dubai –
You need to decide a name for your real estate brokerage in Dubai. You may choose any Arabic name or English Name at a nominal cost. The name must be as per the guidelines put forth by the Department of Economic Development (DED).
Initial Approval + Tasheel
Get the initial approval from the Department of Economic Development (DED) and the documentations associated from Tasheel to start a real estate brokerage in Dubai.
Memorandum of Association
At this stage, the Memorandum of Association (MOA) must be typed in accordance to the UAE commercial law and the protocols of the Department of Economic Development (DED). Notarising the MOA is crucial.
UAE local partner
Opening a real estate brokerage in Dubai requires you to partner with a UAE national and provide him 100% ownership. You may get into a corporate sponsorship in Dubai and ensure to partner with a reliable and trustworthy local partner. You may seek for documentations such Investor’s Right Protection Contract or the company’s Power of Attorney that makes you the manger and providers you 100% operational ownership of the company.
Real Estate Brokers Registration Services (RERA Services)
To open a real estate brokerage in Dubai, the real estate brokers or agent needs to be certified by the Real Estate Brokers Registration (RERA). It is essential to apply for the RERA Exam and get the Broker ID. RERA certification involves the following steps –
- Getting resident visa under the company
- Applying for RERA’s certified training for real estate brokers
- Attending the classes held at the opted RERA training center
- Writing the RERA exam
- Obtaining the license and certification
Good Conduct Certificate
The Good Conduct Certificate is issued by Dubai Police addressing the Real Estate Regulatory Agency.
Dubai Land Department Approval
Opening a real estate brokerage in Dubai requires approval from the Dubai Land Department. Dubai Land Department is a governmental body administrates everything concerning real estate in the region.
Dubai Rented Office Space
All the real estate brokerage license by RERA in Dubai require to have a rented office space or even an office in a business center as per the standards of Department of Economic Development.
Cost of opening a real estate brokerage in Dubai
The cost of obtaining a real estate brokerage license in Dubai depends upon a number of factors including location and business activities. RERA registration exam cost depends on the educational qualifications. For bachelor degree holders, the exam fee is AED 3,200, while for non bachelor degree holders it is AED 6,300. And, for applicants with no educational qualification the fee is AED 15,750. The cost charged by RERA for per activity is AED 5020.
Once RERA training certificate has been obtained, license processing can be started. The cost of a real estate brokerage license for an LLC is approximately AED 12,950.
Approximately the cost of opening a real estate company in Dubai starts from AED 21,000. This cost can vary depending upon the other activities chosen and government fees.
Connect with Shuraa Business Setup
Still having confusion on how to setup a real estate company in Dubai or anywhere across the UAE? Do you need to know about RERA’s certified training for real estate brokers? Or Are you trying to find out how to apply for RERA license in Dubai? If you have any questions concerning setting up a real estate company in UAE or any other business speak to an expert.
At Shuraa Business Setup we offer you free UAE company formation consultation. We help you with everything related to business setup in the UAE and help you take those first steps in your entrepreneurial journey.