Most foreign investors find it hard to start a real estate broker activity due to restrictions on the ownership which was vested with UAE nationals only. But that is no more.
Setting up a real estate brokerage firm in Dubai would have been slightly risky a year ago as demand was sluggish due to Covid-induced uncertainties. The demand for real estate investment increased in 2021 as the government successfully fought back against the virus. EXPO 2020, property visas, Golden Visa, Green Visa etc also contributed to the increasing demand as investors from Covid-stricken countries started migrating to Dubai. Turning the environment of business setup in Dubai more conducive to businessmen, the government introduced a new foreign ownership reform recently.
The government has announced that foreign investors are entitled to 100% ownership in real estate brokerage firms in the UAE. Since the real estate sector has been a dominant force in shaping up the UAE economy, the new announcement has created waves across the industry. Industry players and business consultants in Dubai have welcomed the move. Let’s explore the implications of the new change:
What’s the big change?
The introduction of 100% foreign ownership is a huge change given that real estate brokerage firms in Dubai previously were subject to 100% ownership of UAE nationals. Zero foreign ownership was implemented to prevent circumstances where the expatriate absconds the country or misuse the license. Earlier, to set up a real estate brokerage firm in Dubai, the UAE national had to hold the total ownership whereas the expatriate investor becomes that manager.
However, the foreign investor will be given a Power of Attorney to control the ownership of the real estate company in Dubai. The new announcement has become a paradigm shift when it comes to the process of business setup in Dubai. Now, more foreign investors will start to apply for a real estate brokerage license in Dubai. The EXPO 2020 is the perfect time to start a real estate business in Dubai. Business consultants in Dubai can help entrepreneurs in applying for the license.
Requirements for Local Service Agent
Even though expatriates can now fully own a real estate brokerage company in Dubai, the service of the UAE national is still required. A Local Service Agent (LSA) must be appointed to set up a real estate brokerage firm in Dubai. The LSA won’t hold any shares in the company. Business set up consultants in Dubai can help the entrepreneurs find an ideal LSA.
Benefits of Doing Real Estate Business in Dubai
Even though the real estate scene in Dubai is considered to be saturated, new avenues of business are always open. Owning a property in Dubai has become more attractive especially after the introduction of property-linked visas. Here are some factors that will inspire you to obtain a real estate license in Dubai:
- A large market that offers huge potential
- Dubai is one of the biggest holiday destinations in the world
- Long term visas based on property investment to spur purchases
- Increase in the number of new real estate projects
- The high number of luxury property projects
- Robust real estate legislation to protect both brokers and buyers.
- The transparent and easy documentation process
- Flexible labour laws
- World-class infrastructure.
- Zero taxation
How to Obtain a Real Estate Broker’s License in Dubai?
The investors are required to apply for a real estate license in Dubai through the Department of Economic Development (DED). Also, they should obtain RERA approval through Trakheesi System. The rest of the steps are given below:
- Reserve a trade name with DED
- Submit all the relevant documents to the land department and complete online course registration.
- Obtain the NOC from RERA upon completion of training
- Obtain an initial approval certificate from DED
- Sign the Local Service Agent Agreement at Notary Public
- Submit all documents to DED
- Get the payment voucher and pay the fee
- Trade license is issued
- Obtain the office registration number and broker ID
How can Business Setup Consultants in Dubai Help you?
There are more than 2,000 real estate brokerage firms in Dubai. However, as per the rules of business setup in Dubai, all of them are owned by UAE nationals with the foreigner as the manager. The introduction of 100% ownership will have maximum impact on the real estate sector. The process of setting up a real estate business in Dubai is complex as many approvals and training are involved. This demands assistance from business setup consultants in Dubai such as Jitendra Business Consultants (JBC).
JBC can provide consultation on the new changes to make the entrepreneurial endeavour worth the effort. We have a team of highly qualified consultants who will guide the investors through every step of setting up a real estate business in Dubai. JBC can take care of all the necessary government approvals to make your business a success in the highly competitive Dubai real estate market.