Cost of Opening a Real Estate Brokerage in Dubai

What Is the Cost of Opening a Real Estate Brokerage in Dubai?

Written by Mayra
Written by Mayra

Business Setup Advisor

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What Is the Cost of Opening a Real Estate Brokerage in Dubai?

Ever wondered about becoming a real estate agent in Dubai? With its cutting-edge infrastructure and global appeal, Dubai’s real estate market is thriving. Advanced technology attracts major international businesses, creating a landscape ripe with investment opportunities. If you’re considering entering this dynamic field, understanding the costs involved in starting a real estate brokerage in Dubai is crucial.

The Real Estate Industry in Dubai

The Boom in Real Estate Brokerages

Dubai’s real estate industry is booming, leading to a high demand for new brokerages. The process of starting one involves several steps, including obtaining a license, creating a business plan, securing funds, and hiring agents—similar to procedures worldwide. However, Dubai has unique additional prerequisites.

Partnering with Local Experts

To navigate the complexities of establishing a real estate brokerage in Dubai, consider partnering with local business experts from Company Setup. They offer comprehensive support, handling intricate tasks to ensure a smooth, budget-friendly experience.

Necessity of 100% UAE Local Ownership for Real Estate Brokerage in Dubai

In Dubai, mainland businesses typically require a 51% partnership with a local UAE entity. However, real estate brokerages are uniquely permitted 100% ownership by UAE nationals. Here’s why:

Investor Security

UAE commercial law and the Real Estate Regulatory Agency (RERA) prioritize investor security. Granting full ownership to a UAE national ensures robust protection for investors.

Transaction Volume

Real estate brokerages manage significant transactions. To mitigate misuse or misconduct, complete control is granted to a UAE national, ensuring responsible management.

Investor Interest

Dubai’s real estate brokerage framework emphasizes investor well-being. While a UAE national holds ownership, the investor can assume the role of company manager, maintaining operational control with a documented Power of Attorney.

How to Start a Real Estate Brokerage in Dubai

Starting a real estate brokerage in Dubai is a straightforward process if you follow these steps:

Step 1: Choose a Name

Select an approved name that complies with the Department of Economic Development (DED) guidelines.

Step 2: Obtain Initial Approval

Secure initial approval from DED and gather necessary documents from Tasheel.

Step 3: Create a Memorandum of Association

Draft a Memorandum of Association (MOA) as per UAE commercial law, following DED protocols, and get it notarized.

Step 4: Acquire RERA Certification

Get certified by RERA by applying for the RERA exam and obtaining your Broker ID. This process includes securing a visa, undergoing training, taking the exam, and achieving certification.

Step 5: Obtain a Good Conduct Certificate

Acquire this certificate from Dubai Police, which is recognized by RERA.

Step 6: Gain DLD Approval

Receive approval from the Dubai Land Department, which governs real estate activities.

Step 7: Set Up Office Space

Secure a rented office space or business center that complies with DED and RERA regulations.

What is the Cost of Opening a Real Estate Brokerage in Dubai?

Starting a real estate brokerage in Dubai involves various costs. The RERA charges approximately AED 5,020 per activity, and obtaining a RERA training certificate is mandatory. For a Limited Liability Company (LLC), the real estate license cost is roughly AED 12,950*. Overall, the total startup cost for a real estate company in Dubai begins at around AED 21,000, varying based on specific activities and government fees.

Difference Between a Real Estate Agent and Real Estate Broker

These terms are often confused. Here’s a clarification:

Real Estate Broker

  • Handles legal aspects and entire real estate transactions.
  • Holds additional management and financial responsibilities.
  • Requires comprehensive training, adhering to high business standards.
  • Can supervise, employ, and guide real estate agents.
  • Oversees agent training for ethical business practices.

Real Estate Agent

  • Works under the supervision of a Dubai broker.
  • Cannot operate independently; initiation by a broker is required.
  • Pays fees to the skilled broker for mentorship.
  • Shares a portion of commissions with the brokerage.

How to Get a Brokerage License in Dubai

To obtain a brokerage license in Dubai, follow these steps:

  1. Take a Certified Training Course: Enroll in a Real Estate Brokers training course provided by the Dubai Real Estate Institute (DREI).
  2. Pass the Broker Exam: After completing the course, pass an exam to become a registered broker in Dubai.
  3. Obtain a Good Conduct Certificate: Get this certificate from Dubai Police as part of your application process.

Completing these steps will facilitate obtaining your brokerage license in Dubai.

How to Get My Real Estate License in Dubai

To obtain your real estate license in Dubai, follow these steps:

  1. Apply for a Residency Visa.
  2. Go through the application process.
  3. Enroll in DREI Certified Training and take the RERA exam.
  4. Obtain your Realtor License and secure approval.

Cost of Real Estate License in Dubai

The cost of acquiring a real estate license in Dubai typically ranges between AED 25,000 and AED 50,000. This price varies based on the specific type of real estate business and associated activities.

How Can We Assist You?

Are you unsure about establishing a real estate company in Dubai or anywhere in the UAE? Do you need clarity on RERA’s certified training for real estate brokers? Or are you navigating the process of applying for a RERA license in Dubai?

Whether you’re seeking guidance on becoming a real estate agent in Dubai or have questions across various business sectors, our expert business consultants are here to help.

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