Entrepreneurs should be happy to know that real estate is one of Dubai’s thriving industries. When it comes to skyscraper structures in the Gulf States, Dubai is the front runner. As evidence of the growing real estate business in Dubai, the world’s tallest building, Burj Khalifa, Marina 101, the Princess Tower, and several others can be found.
Recent market research estimates are all predicting that rising rents, an increased supply of apartments, and a changing demand for executive positions in the employment market will continue to impact the residential market during 2020. It is because of this that you may find many foreigners who have purchased residential properties in Dubai. As a result, it could be a great opportunity for real estate entrepreneurs who want to start a business in Dubai.
What is the process of starting a real estate company in Dubai? In this case, we may be able to help you start a real estate company in Dubai and reduce your costs. Find out more.
1. Choose the right location and business type to start your real estate company
and start your entrepreneurial journey today for just AED 5,000
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Consider the location of your real estate business, since according to UAE regulations, businesses must be 51% owned by a United Arab Emirates (UAE) national. Ownership, however, can be 100% if you explore different areas within the country since there are a few designated free zones. These zones have lower regulations and are therefore more attractive to businesses. Moreover, owning a real estate business in a free zone is advantageous because of the tax exemption for corporate income for 50 years, the exemption from personal income tax, freedom from import duties, and the avoidance of excessive regulations.
What type of business organization are you setting up? You can choose from 8 types of business organizations in Dubai:
Individual Partnership Cooperative
Cooperative Limited Partnership
Community Limited Partnership
Combined Venture
with Public Shareholdings
and Private Shareholdings
Limited Liability Companies
as well as Professional Companies
2. Register a business name for your real estate business
Every country requires that businesses be registered legally. After deciding on the business type, you must apply to the Department of Economic Development in the Emirates for the registration of a trade name and the associated documents. Try to incorporate “real estate” or “broker” in your trade name since it should be related to your business activities.
Getting approval for your application can be accomplished online in most cases. The process doesn’t end here; you need to resubmit initial documents and add a few more to receive final approval. You will then get a commercial license from the UAE government to buy and sell real estate.
Now we’re getting somewhere…
3. Get educated and/or certified for licensing
You must complete a professional training course and obtain a certificate to obtain initial approval and authorization from the Real Estate Regulatory Authority (RERA) in Dubai. To obtain the permit, you must do this through the Dubai Real Estate Regulatory Agency.
You must also complete the Real Estate Certified Practitioner’s training course if you have a college degree. To get more information on the Real Estate Executive Diploma program, you can visit the RERA website. If you do not have a degree, you must enroll in the Real Estate Executive Diploma program.
4. Hire a back-office assistant.
When you are an entrepreneur, you have to handle all your tasks professionally. At some point, though, you might feel bogged down with all the back-office duties, real estate accounting, etc. In the beginning, you will need to manage your accounting books, and keeping track of your expenses and revenue will help you implement better strategies.
Therefore, it’s better for you to outsource accounting services, rather than hire a team of experts in-house.
What are the benefits of outsourcing?
Outsourcing accounting services can help you:
Lower operating costs
Provide round-the-clock service
Expertise available
to complete projects within the agreed timeframe
What accounting services are offered by firms?
Accountancy and bookkeeping
for payables and receivables
including bank reconciliation
Preparation of financial reports
Processing of payroll
and tax preparation
5. Establish your real estate office
When you own your own real estate business, having your own office will help you stand out in the market and help you win your customers’ trust, as they will feel that you are working ethically. In addition, obtaining the necessary licenses from the UAE government and RERA will help establish your reputation as a reputable business owner.
Keeping up with the market: Dubai’s property market is constantly changing. You need to stay up-to-date with the latest laws and regulations in the current market. In addition, Dubai’s real estate laws are constantly changing, and new initiatives are launched every day. It is the agents’ job to stay abreast of these changes and adapt to them.
From the client’s perspective: According to Karan, no deal should be made for the sake of a quick commission. It is always recommended that a real estate agent make a sale based on the client’s needs. In the long run, this will benefit agents since they will get more referrals, and as a result, be successful in the Dubai real estate market.
Knowing your market is crucial for a successful agent. They must understand everything there is to know about the areas they are dealing with. It is a great idea to get to know the neighborhood by visiting and exploring it physically as well as talking to people who live there.
Conclusion
When you are starting a real estate business, you will learn more about people, about community issues, about life, and about the impact of government, probably more than any other profession.
