Real estate is a highly developed sector not just in Dubai but all over the UAE, resulting in attracting developers, construction firms, investors, and brokers in the country.
Dubai real estate, for one, has contributed 13.6 percent or AED 223B worth of investments in the country’s 2018 gross domestic product (GDP). It is a self-sustaining economy, and as the Emirate continues to flourish in the oncoming years, now is the right time for aspiring brokers to jump into the field of real estate brokerage in Dubai and expand their services.
What Is Real Estate Brokerage?
Issued on May 2006, the By-Law No. 85 of 2006 regarding the Regulation of Real Estate Brokers Register in the Dubai, otherwise known as the “Brokers Law,” brokerage is the contract undertaken by a broker with his/her client to look for a second party to enter into a certain contract.
To put it simply, real estate brokerage is the practice of assisting clients who are looking into buying, renting, or selling real estate properties and connecting them to prospective buyers or tenants.
Real Estate Broker Vs Agent
There are many misconceptions on the difference between real estate brokers and agents. For one, though both can sell properties and/or help buyers choose properties, a real estate broker has gone through a more extensive training and licensing with the Real Estate Department. A real estate broker can employ agents to work for his/her brokerage. He/she will also be responsible for certain financial and management matters, as stated in the The Brokers Law of UAE.
The best thing about being a real estate broker is that they are given the freedom to work on their own, compared to a mere agent who would need the guidance and management of a licensed broker.
With a legally and efficiently-formed brokerage business, a real estate broker will reap a successful practice of his/her profession in Dubai.
Why Should You Set Up Your Real Estate Brokerage Business In Dubai?
- Easy business setup and processes. Dubai and the rest of the UAE is well known for its efficient and effective business setup. Real estate company formation is no exception.
- Low taxation scheme. Dubai levies zero corporate and income tax, making it a haven amongst other countries.
- Supportive management. With the establishment of Brokers Law, multiple policies and regulations in support of real estate brokerage, and authorities tasked to protect the rights of agents and brokers, opening a brokerage has never been this well structured and worry-free. Dubai provides a proactive environment, maximizing the potential of existing and developing sectors in the emirate.
- Large clientele. Dubai’s welcoming community has encouraged many tourists and investors to visit, or stay, even, in the emirate. Because of this, real estate is always in demand and has a large clientele.
What Are The Steps In Setting Up A Real Estate Business In Dubai?
Convinced yet? Follow these easy steps on real estate business setup in Dubai:
- Prepare your documents. These are your application forms, passport copies of partners, and attested legal documents such as proof of degree of partners. You would need as well to apply for a trade name reservation.
- Get initial approval from authorities. Submit your application form and supporting documents.
- Get the approval of the Real Estate Regulatory Agency (RERA). In order to get this, the applicant must pass RERA courses, ranging from two to 15 days, depending on scope of education.
- Apply for a trade license. Once you’ve received your RERA approval, submit an application to the chosen authority of the real estate brokerage business.
- Get RERA Registration Certificate. Once the trade license is available, the company may now be registered with RERA.
- Register to the Ministry of Labor. To employ local and foreign real estate agents, you must first register your newly formed company with the Ministry of Labor.
How Can IBG Consulting Help You?
Though company formation in Dubai and the other Emirates are not overly complex, prior knowledge on the process may be required in order to complete the incorporation. Good thing that IBG Consulting has been helping hundreds of investors build their enterprise in Dubai.
We are a team of dedicated individuals who are fully equipped to assist local and foreign professionals looking to expand their practices in Dubai and the other Emirates, striving to provide the best advice and package that fit their needs.
To know more about how we can help you start your real estate brokerage in Dubai, Contact us today.