Real Estate License In Dubai

In the world of investments, real estate emerges as a truly distinct and appealing asset class, setting itself apart from the likes of gold, stocks, cryptocurrencies, and derivatives. Its unique combination of stability and long-term growth potential makes it a magnet for investors seeking financial security.

Nowhere is this allure more pronounced than in Dubai, a global epicenter of real estate opportunities, thanks to its enticing tax-free status, an impressive infrastructural system, thriving tourism and a strategic location that’s favorable to all.

This unprecedented dynamism has not only sparked a wave of real estate investment but also ignited a fervent interest in real estate businesses. As ambitious individuals seek to carve their fortunes in this thriving market, this article will provide a comprehensive guide on the essential steps required to register their real estate license in Dubai, offering a gateway to a potentially prosperous future.

Why choose to run a Real-Estate business in Dubai?

Beginning your journey as a real estate business, broker, or agent in the UAE holds great appeal for several reasons. Firstly, you'll find yourself dealing with one of the most valuable assets in the market: real estate. Dubai's real estate is among the most sought after assets globally, resulting in substantial commissions for transactions involving such high-value properties.

Moreover, it provides you with the opportunity to play a pivotal role in helping individuals and businesses find their dream homes or ideal office spaces. This profession is not only fulfilling but also exceptionally engaging, offering you the chance to interact with a diverse and multicultural clientele.

However, it's essential to understand that establishing yourself as a highly regarded and successful real estate agency in Dubai is no simple task. The industry is fiercely competitive, requiring a strong work ethic, regular customer engagement, and the ability to discern and address their unique needs. Many brokerage firms in the UAE hire realtors as independent contractors on a commission-only basis, while others offer a more structured compensation package that includes a basic salary alongside commissions.

If you're eager to embark on your business journey in Dubai, you're probably wondering about the essential steps to get started. While it's important to recognize that building a robust portfolio and establishing a thriving real estate career may take time, the initial steps often begin with obtaining a bunch of licenses including your broker's license. This crucial license sets the foundation for your journey into the real estate industry in Dubai. It's the gateway to a world of exciting opportunities and the chance to make a mark in this dynamic market.

How do you get started?

Gain market insight:

To thrive as a real estate entrepreneur in Dubai, it's vital to have an in-depth understanding of the market. Focus on your chosen areas of operation and become thoroughly acquainted with them. Don't rely solely on online resources; instead, conduct physical site visits to gain firsthand insights. Engage with local property owners for valuable day-to-day information about the market.

Select your business approach

Starting your real estate business in Dubai requires obtaining a trade license from the Department of Economic Development (DED) which oversees all licensing activities in Dubai. There are broadly two categories that come in effect with real estate:

Commercial trade license

A commercial license is granted for a wide range of commercial activities in Dubai, catering to both general and specialized traders. This license is essential for retail businesses, construction firms, real estate enterprises, and various other general entities operating within the emirate.

While there are many kinds of commercial licenses, a frequently used commercial trade license is the Limited Liability Company (LLC), where a UAE national owns 51%, and an expat investor owns 49%. Despite this ownership structure, the expat investor maintains full control over assets, profits, and losses, safeguarding their interests.

However, there have been recent amendments in UAE law, enabling foreign investors to achieve complete ownership, thus making 'Sole Proprietorship' feasible without the need for a local sponsor to get involved in whatsoever manner.

Professional trade license

Professional licenses in Dubai are a prerequisite for service-oriented businesses. These licenses are issued after evaluating the applicant's educational qualifications and their field of expertise. The process of obtaining a professional trade license involves several considerations. As such, to operate property management or brokerage services in Dubai, you must obtain the professional services license, which serves as the final approval.

If you’re a foreign national trying to set up a real estate business in Dubai, you’ll need to choose your business model wisely. If you want complete ownership of your business, you’ll need a license in the free zone, which comes with restrictions. You’ll need to partner with a local service agent to conduct trading operations in the UAE.

The other alternative is to set up a business in the mainland, where you’ll have a 49% profit and loss stake of your company with the other 51% stake owned by a UAE national. The citizen acts as a sponsor and ensures you run your business and trade as per your wishes. Although this law has been amended recently, allowing the expat complete ownership with a commercial license, without having the involvement of a local sponsor.

In cases of specialized business activities, like buying and selling real estate, a commercial/professional license may not be enough; in addition you would also need to obtain a RERA license in Dubai.

What is RERA?

RERA or Real Estate Regulatory Authority, part of Dubai's land department, regulates and enforces rules in the real estate market. Established in 2007 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, it ensures a smooth, fair, and effective operation of the sector, promoting compliance with standards and regulations.

RERA's presence has significantly improved the regulation of the real estate sector, creating a fair environment where all stakeholders comprehend the rules. It also serves as a reliable resource for addressing disputes and obtaining rule-related information for businesses and real estate agents in Dubai.

RERA provides oversight of the following kinds of businesses:

Real Estate Consultancies
Real Estate Brokerages, Leasing Companies And Mortgage Consultancies
Real Estate Management Companies
Businesses Providing Real Estate Services In Dubai
The Buying And Selling Of Real Estate
Real Estate Promotion And Advertising
Any Kind Of Dubai Real Estate Inspection Service
Owner Associations
Many Other Related Parties

Responsibilities Under RERA In Dubai

RERA in Dubai holds a broad array of responsibilities, which encompass:

Licensing all businesses and organizations working in the real estate sector
Licensing of real estate agents
Regulation of rental agreements, advertising, and real estate exhibitions
Producing studies and reports about the sector
Promoting the real estate sector
Communicating information about regulatory changes relating to the real estate sector to businesses and private individuals.

Obtaining a RERA license is mandatory for those willing to trade in real estate and marks the initial step of getting started as a real estate firm in Dubai. Earning this license entails taking and passing the RERA exam, which requires following a structured step-by-step process.

Apply for a Residency Visa

For non-UAE nationals aspiring to be real estate agents in Dubai, the initial requirement is obtaining a valid residency visa and Emirates ID. The UAE strictly adheres to regulations governing immigration, work permits, and visas, which exempt UAE and GCC residents. Other foreign visitors must secure a valid work visa to operate in the UAE.

Application process

You should initiate the process by registering a business trade name that aligns with the naming regulations of the United Arab Emirates. It should accurately reflect your company's activities while avoiding any offensive terms.

Subsequently, you'll be required to submit a range of documents through online registration. Additionally, gather signatures from all shareholders and acquire your payment voucher.

Register For DREI Certified Training And Take The RERA Exam

If you're a newcomer to the Dubai real estate sector, consider enrolling in the RERA-endorsed Certified Training for Real Estate Brokers, offered by the Dubai Real Estate Institute (DREI). This comprehensive 4-day course equips aspiring enthusiasts with a deep understanding of Dubai's real estate market, laws, and industry practices.

Classes for this course are available online or in-person at the Dubai Land Department. To register, you'll need to provide a copy of your Emirates ID and residency visa and pay an AED 3000 fee for DREI course enrollment.

TOPICS COVERED IN DREI COURSE:

History and Development
The Business of a Broker
Introduction to Owner’s Associations
Sales Processes and Agreements
Leasing Process and Rental Agreements
Concepts, Definitions, and Market Players
Legal Module
Essential Skills
Code of Ethics

For more information, you can contact the relevant department through the following details:

Address: Dubai Land Department, Baniyas Road

Contact number: +971 – 8004488

Timings: 07:30 am to 04:30 pm, Monday to Friday

The next step after completing the DREI training is to take the RERA registration exam. The exam fee varies depending on the last educational certificate you hold.

The RERA registration exam would cost AED 3,200 to those with bachelor’s degrees in any field. AED 6,300 is the exam fee for those who don’t hold a bachelor’s or master’s degree. Additionally, if you hold no educational qualifications, the RERA registration exam would cost AED 15,750.

4. Get Your Realtor License And Obtain Approval

To kickstart your real estate business in Dubai, obtaining a realtor license is essential. After successfully completing the DREI training and passing the RERA registration exam, you can apply for your real estate agent license in Dubai.

The Dubai Land Department (DLD), the governmental body overseeing real estate matters, must approve the establishment of your real estate brokerage.

Additionally, when applying for a realtor license, you need to provide a Police Clearance Certificate to the Dubai Economic Department (DED), which is a straightforward process if you have a clean criminal record.

Once you've submitted these necessary documents, DED will review and approve your application, issuing your real estate agent license and broker card within a few days. Ensure you have your trade license in hand before commencing your real estate business operations.

Remember that this license is not perpetual; it requires renewal on an annual basis. Plan to renew your real estate agent license one month before its expiration date. Keep in mind that you would also have to re-apply for a RERA exam and score at least 85% or above to retain the license. Lastly, at the time of renewal, submitting your police clearance certificate is mandatory too.

As you reach the conclusion of this article, you should now have a well-defined roadmap for launching your real estate venture. Keep in mind that it's not merely about completing the paperwork; gaining a deep understanding of your market and acquiring credible market insights are equally crucial. This knowledge will help you chart your course and distinguish yourself in a competitive market.