Dubai’s real estate has consistently risen since its 2020 recovery, promising a profitable venture in 2023 despite the potential impact of interest rates. As experts in business licensing procedures, Meydan Free Zone can simplify your entry into this booming market, assisting with licensing and incorporation. To succeed in the UAE’s real estate sector, it’s crucial to understand the requisite steps, third-party approvals, and regulations.
Why and how to start a real estate business in Dubai?
According to the Zoom report, luxury real estate in Dubai will have another impressive year, with an anticipated 13.5 per cent increase in prices in 2023. The report says this is the highest increase among the top 25 foreign destinations. Setting up a real estate company in Dubai, thus, is a smart move considering the investor appetite and confidence in the market.
What are the real estate business activities in Dubai?
Dubai’s real estate market offers numerous profitable opportunities. Selecting an activity approved by RERA, such as consultancy, mortgage, or brokerage, is crucial. At Meydan Free Zone, we simplify this process and provide support for setup, scaling, paperwork, and more, ensuring your real estate business thrives in this competitive market. Our detailed recommendations for real estate activities are provided below.
6499.98 Real Estate Development
This activity refers to businesses that develop and finance real estate ventures, encompassing residential and commercial buildings, tourism initiatives, and related infrastructure and recreational facilities. Additionally, it includes the sale of properties or projects as per the freehold property ownership regulations, irrespective of whether they’re owned by the license holders or by a third party via an agreement between the developer and the landowner. Before starting the project, this contract must be registered with the Escrow Accounts Department. This operation is only permissible with other activities under Group 4 of RERA, like buying and selling real estate.
Real estate development licenses require a title deed in the name of the license holder or a partner. This deed is verified electronically. To market the project, a permit from the Trakheesi system is mandatory.
The license will be issued from Meydan Free Zone with authorization from the Department of Economic Development (DED), Dubai, after having approval from RERA (Real Estate Regulatory Agency) for fulfilling the above requirements. In Meydan Free Zone, we can assist you in getting external approval from RERA. Having this done will allow you to focus on establishing the company rather than fretting about getting additional approval and documentation involved with it.
Activity: 6619.94 Real Estate Mortgage Consultancy?
Include firms that specialize in advising clients on how to mortgage property to get loans from financial institutions. Choosing a financial institution to finance freehold properties, the process of mortgage and release of property, documentation, and disclosure, defaulting and mortgaging in the middle, refinancing and mortgaging fully paid properties, remortgaging and transfer to another financer, evaluating financing rates, etc., are all involved in the financing process. Such firms cannot seek or carry out their own mortgages.
6619.96 Real Estate Mortgage Broker
Includes personal and corporate brokers who advise and assist borrowers in obtaining the best borrowing conditions from lenders and commercial banks to acquire or build properties; such service is against commission without exercising direct lending to borrowers.
6810.99 Buying and Selling of Real Estate
Includes firms engaged in buying and selling real estate, such as residential and non-residential buildings and land; such firms are not allowed to practice activity in Real Estate Development.
6820.93 Real Estate Consultancies
Includes providing sound advice to potential buyers and developing strategies to achieve their goals and objectives; it involves showing properties, analyzing sales statistics, sourcing appraisers, referring mortgage service providers, contractors and renovation providers, examining contracts before making offers, closing and escrow expertise. The activity can, however, only be combined with other Group 3 RERA activities.
6820.94 Real Estate Valuation Services
This includes the appraisal and assessing the monetary value of fixed property. In particular, plots of land and building, for various reasons commissioned by specialized surveyors or by official authorities. Activities of this type can only be combined with other RERA Group 3 activities.
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6820.95 Property Inspection Services
Includes firms specializing in the inspection of housing and commercial properties providing comprehensive, objective, and professional reports for proprietors, sellers, buyers, and real estate agents to facilitate negotiations and transactions and to provide buyers and sellers with reports and remarks ahead of the completion of buying and selling stating the condition of the property and indicating any technical flows. RERA Group 3 activities can only be combined with this activity.
6820.96 Self-owned Property Leasing & Management Services
Includes firms engaged in managing commercial, residential, and industrial buildings owned by the owner and his first and second-degree relatives, also handling contractual arrangements with the firms in charge of maintenance, security and as well as issuing tenants contracts, such firms are not allowed to practice real estate Brokerage. This can only be combined with other Group 2 RERA and requires additional approval from RERA.
6820.97 Real Estate Management Supervision Services
Includes firms specialized in managing and supervising properties contracting with maintenance companies, cleaning and security services, dealing with administrative issues for the property’s owner, and coordinating with lease brokers for finding tenants for vacant properties. Firms like these are not allowed to practice selling, leasing, or releasing properties and can only be combined with other Group 1 of RERA.
6820.98 Prefabricated Houses Rental
This includes renting prefabricated houses. For example, for majlis, event management, residential, oil and gas industries. You don’t need any pre-approvals for this activity. Talk to a Meydan Free Zone expert for more information on the conditions and criteria.
6820.99 Owner Association Management Services
This activity covers service charge evaluation and invoicing, accounting and financial management, generating non-dues revenue and fundraising. It is also essential for owner association management companies to be familiar with laws and regulations applicable to associations and other regulatory bodies like RERA, Dubai Civil Defense, DEWA and Empower. This activity cannot be merged with other activities.
7010.94 Real Estate Representative Office
The purpose of this office is to represent any international company or enterprise in the UAE. Potentially, this would be for marketing and promoting its property outside the UAE or enable commercial transactions between the parent company and its clientele. It is not permitted for such an office to carry out any activities or enter into real estate transactions on its own, unless they are conducted outside the UAE.
7110.99 Real Estate Survey Services
Activities involved in surveying buildings and residential properties. To illustrate, surveying a building to determine the number of floors and joint spaces. Surveying includes lands, buildings and units, vertical and dimensional surveying, joint spaces in buildings lands surveying, drafting maps and construction sketches. This can only be combined with other RERA Group 3 activities.
7490.90 Real Estate Registration Trustee
Refers to a real estate business that owns and operates income-producing properties. For example, investing in real estate with high-income potential.
7490.97 Real Estate Services Trustee
This includes firms approved by Land Department to carry out real estate services via a computerized system. It involves the registration of tenancy contracts in Ejari, enrollment of the training courses, and issuance of “to whom it may concern certificates”. All of these services require regulations to be preserved.
Dubai Land Department requires license holders of real estate registration trustees, real estate service trustees, real estate promotion trustees, and real estate service centers to sign an agreement.
8230.95 Real Estate Public Auction Organizing
The activity involves firms that organize property public auctions against the commission. A standard process would include handling licensing formalities, fixing the auction date and venue, advertising the property in the media to promote its features and sale terms and conditions, offering consultancy and evaluation from industry experts, coordinating payments and ownership transfer, and conducting the auction remotely in the absence of the concerned parties.
8230.97 Real Estate Exhibition Organizing
This activity includes businesses that organize real estate exhibitions to promote property locally and internationally. It is necessary to obtain permission from legal authorities to hold such an exhibition.
8549.78 Real Estate Training Institute
Offering real estate training programs to develop professional abilities and competencies, enabling them to participate in various real estate-related activities and sectors. In addition to obtaining approval from DED, it is necessary to get external approval from the Knowledge and Human Development Authority (KHDA). Applying for a KHDA permit for a real estate training institute in Dubai requires several forms and documents.
9609.95 Special Purpose Firm
This includes a firm that is limited by shares. Special purpose firms can only provide financial services with the approval of the Dubai Financial Services Authority (DFSA). It may not hold the Trustee, General Partner, or Investment Company position for an Investment Trust or Partnership.
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Service terms for real estate activities in Dubai
For real estate development licenses, organising real estate exhibitions, buying and selling lands and properties, real estate representation offices, and leasing and managing private real estate services.
- Submitting a license application through Dubai’s Department of Economy and Tourism.
- Registering in the Trakheesi system through Dubai Land Department’s website www.dubailand.gov.ae
- Applying for a professional practice card for a real estate activity must be done immediately after the application for a real estate license is submitted and approved.
Cost of starting a Real estate business in Dubai
We facilitate easy business setup in Meydan Free Zone, Dubai’s entrepreneurial hub, with flexible customization of your real estate license. Our Pay-As-You-Go model lets you start your business and pay according to your terms, with packages beginning at AED 12,500. Additional costs, such as AED 1850/visa, investor/family visa (AED 4000, valid for two years), and residency/employment visas (AED 3500, valid for two years), plus fees for medical and Emirates ID card (AED 2,250) and for Establishment or Immigration card (AED 2,000), depending on your needs. You will also get exclusive discounts using Meydan Free Zone Cost Calculator and can save up to 15% on a multi-year setup.
Get started now by using our business setup cost calculator, or connect with our team of business setup experts for assistance. Have multiple business activities with a single licenses
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Dubai’s real estate has consistently risen since its 2020 recovery, promising a profitable venture in 2023 despite the potential impact of interest rates. As experts in business licensing procedures, Meydan Free Zone can simplify your entry into this booming market, assisting with licensing and incorporation. To succeed in the UAE’s real estate sector, it’s crucial to understand the requisite steps, third-party approvals, and regulations.
