Dubai is a global leader when it comes to the real estate market and return on investment from property. So, it is an ideal destination for property investors as the city has a lot to offer in terms of shopping, lifestyle, amenities, schooling, healthcare, and more. Hence, setting up a Real Estate Brokerage Company in Dubai is a prospective business activity for entrepreneurs.
This article highlights the steps in setting up a Real Estate Brokerage Company in Dubai and also the ways to become a Real Estate Agent in Dubai. Also, a real estate brokerage license in Dubai is a requirement to conduct any sort of legal real estate-related business in the UAE.
The real estate sector in Dubai, UAE has transformed and changed drastically. Furthermore, there is a shift towards long-term investment options and more market trusts for off-plan projects in UAE. Additionally, the introduction of long-term residence visas for property purchases above AED 2 million has further fueled the real estate growth in the country.
Starting a Real Estate Brokerage Company in Dubai?
By starting a Real Estate Brokerage company in Dubai, the business owner will be facilitating and coordinating with the buyer and seller for a real estate property transaction.
So, once the real estate brokerage license in Dubai is in place and the agents are with you, then the entrepreneur can start a real estate brokerage company. Also, the company will have controls and responsibilities in terms of managing the client’s funds required to initiate the sales transaction.
Additionally, foreign investors can set up a real estate brokerage company with full ownership in the mainland of Dubai. So, the new businesses can apply for a real estate brokerage license from the Department of Economy and Tourism (DET). They can also obtain the Real Estate Regulatory Agency (RERA) approval through the Trakheesi system.
The Dubai Land Department (DLD) manages the Trakheesi System and it helps in unifying the real estate sector and its services under a single platform. It will help in facilitating the licenses, e-cards, approvals, and more. So, the real estate brokerage firm will get a unique Trakheesi number and is also it links with the Dubai Economy (DET) to facilitate central data access.
Real Estate Brokerage License in Dubai
Get the Real Estate Brokerage License in Dubai Mainland from the Dubai Economy and Tourism (DET). Also, there is 100% foreign ownership in professional services and starting a real estate brokerage company in Dubai. However, the shareholders can have a local sponsor agent for their company for coordinating numerous real estate business-related activities.
A Real estate Brokerage License in Dubai is very much in demand due to the real estate boom. To conduct real estate related business activities, having a real estate brokerage license in Dubai is a mandatory requirement. It will legally permit the business owner to conduct the permitted activities relating to real estate buying, selling, management, and more.
A local sponsor will act as a Service Agent to register the real estate brokerage firm with the Dubai Economy and Tourism (DET). Also, the Service Agent will facilitate the documentation, paperwork, and approvals required for the real estate company to successfully obtain the real estate brokerage license in Dubai and start its operations in the UAE.
Real Estate Brokerage Company in Dubai – Scope of Operations
There are many aspects to take care of even after starting the real estate brokerage business. Additionally, the fund flow is an important element to consider. Also, the business owner must be well aware of the latest Anti-Money Laundering rules and regulations. Furthermore, there are strict fines for defaulters or any fraudulent transactions.
So, the real estate brokerage company must understand the source of funds and report any suspicious transactions. Also, they must keep periodic track of their escrow accounts, fund inflows, outflow, etc. Additionally, they must conduct all necessary due diligence while onboarding clients.
Furthermore, physical and digital evidence of the customer’s screening, profiling, and ample documents on the source of funds, etc., must be present in the Real Estate Brokerage firm’s office. So, the firm must have the technology infrastructure to curb money laundering acts. Hence, the policies and internal governance must keep Anti Money Laundering a top priority and monitor their bank accounts frequently.
Also, the Real estate brokerage company must register for the go-AML service portal and adhere to the rules and regulations specified by the UAE Central Bank to restrict money laundering activities.
Business activities under the Real Estate Brokerage
- Facilitating the Buying and Selling
- Coordinating the Leasing and renting of the Property
- Contract Management – Selling, Leasing, Buying, fund management, Financing, and other support services
Real Estate Brokerage License – Special Approvals
Real Estate Brokerage License requires approval from the Dubai Land Department to ensure the investors’ and customers’ interests are protected. It is best to seek the assistance of the Expert Business Consultants at Aurion when it comes to getting approval from the government authorities and proceeding with the real estate brokerage licensing process.
The process of obtaining a real estate brokerage license in Dubai is a bit complicated as it requires many steps to follow. There are various stages in the process and documents required to be submitted for approval.
Aurion Team will coordinate with the business owner as well as the Dubai Economy authorities in obtaining the real estate brokerage license without any hassle. The activities under the real estate brokerage license must be chosen the right way. As the Real Estate Brokerage Company can only conduct business in the activities listed under their trade license in UAE.
The team will assist in choosing the right business activity, and office space, and ensure the business meets all the complaint processes. The government of UAE, Central Bank of UAE, etc., have strict regulations for real estate brokerage firms to prevent money laundering in UAE.
Steps in Setting up a Real Estate Brokerage in Dubai?
Setting up a real estate brokerage company in Dubai includes a lot of planning and preparation. There is immense competition as well as booming opportunities in the field of real estate.
Following are the steps in setting up a real estate brokerage company in Dubai:
- Get the company name and initial approval for the real estate company
- Prepare the Memorandum of Association (MoA), Shareholder Certificate, and other documentation
- Real Estate Registration Certificate and clearing the RERA Exam. The real estate agents must have valid certificates to start their own brokerage company
- Obtain a Good Conduct Certificate from the Dubai Police addressing RERA.
- Get the Dubai Land Department Approval by submitting the shareholder details, business plan, Real Estate Registration Certificate, Real Estate Agent numbers, etc.
- Take a suitable office space for the Real Estate Brokerage Company in the Dubai Mainland. The physical office space or shared office space in any of the business centers will be an ideal option to keep the cost low.
Cost of opening a Real Estate Brokerage Company in Dubai?
Various factors determine the cost of starting a Real Estate Brokerage Company in Dubai. The mainland company cost includes the cost of a professional license, office space, real estate regulatory authority certification, and more.
The real estate brokerage company can be set up in Dubai by the entrepreneur after obtaining a professional license. The business owner must get the RERA Certification and apply for the registration of the Certificate before applying for the real estate brokerage license from the DED Dubai.
Overall the cost of opening a Real Estate Brokerage License in Dubai is approx. AED 22,000 including the RERA Exam Fee of AED 3,200, RERA Special Approval Fee of AED 5,020 (per activity), real estate brokerage license fee of AED 12,900, MoA & lease agreement fee, and other fees.
How to Become a Real Estate Agent in Dubai?
Real Estate Agents are most in demand in Dubai as the sector is currently booming. To become a successful Real Estate Agent there are many milestones to cover. They must attend the training modules provided by the Dubai Real Estate Institute (DREI).
The DREI course is a 4-day session that provides insights into UAE’s real estate landscape and covers leasing, contracts, agreements, legal aspects, and more. The course is approved by the Real Estate Regulatory Agency (RERA). The classes can be taken online or at RERA Agent registration training Center at the Dubai Land Department office.
After the 4-day course, there is a RERA Registration Exam, there is a fee of AED 3,200 approx., provided you have a Bachelor’s degree. Once the exam is cleared, the individual will get the Realtor License and they can legally work as a real estate agent in Dubai.
Along with the real estate license, the entrepreneur will get a card from the Dubai Economy, that will have your RERA Agent number and other details. The Realtor’s License is valid for 1 year and subject to renewal upon appearing for the test again and clearing it.
So in conclusion, the real estate brokerage license is becoming a popular business license and the real estate sector in Dubai is on the growth trajectory. Over the coming years, it is expected to grow more by adding more residential and commercial units into the market.
Real Estate agents and Real Estate Brokerage firms will help transform UAE into a popular destination for foreign investors to live, work and settle over the coming years.
To know more about opening a Real Estate Brokerage Firm in Dubai, talk to our expert Business Consultants right away!
Contact Us: Aurion Business Consultants