Real Estate Business Setup in Dubai: Legal Steps and Costs

Are you someone looking to set up a real estate company in Dubai? It is quite possible with the right guidance and understanding of what you need and what you need to do. The first step is to check if you’re eligible and see if your budget is enough to launch a real estate startup and make it survive for at least a couple of years.

But budget is not the only thing you need to figure out when setting up a real estate company. You also need to have at least an overview of Dubai real estate business setup process even when working with a business setup consultant.

Why Start a Real Estate Business in Dubai?

Dubai’s real estate market is honestly one of the most exciting places to start a real estate business right now. After helping countless entrepreneurs set up here, we can tell you the opportunities are massive.

Constant Demand for Properties

The city keeps growing and attracting people from all over the world, which means constant demand for properties. We’re talking about a place where:

• Population is rapidly increasing every year (Source: DXBInteract)
• Over 92% are expats, many of whom look for housing
• New business licenses are issued daily
• Government keeps announcing mega-projects

Why Dubai Makes Sense for Real Estate

Tax Benefits: No tax on personal earning means your profits stay in your pocket instead of going to the government.

Easy Setup: The government actually wants you to succeed here. Getting a real estate license is straightforward compared to most other countries.

Diverse Market: It’s not just about luxury anymore. There’s strong demand for affordable housing, commercial spaces, vacation rentals, and everything in between.

International Hub: You’re dealing with clients from Europe, Asia, Africa, and America. The English-speaking business environment makes everything smoother.

Dubai’s real estate market has a long-term trend of growth. The government actively supports foreign investment, and you can get 100% business ownership in most areas.

The key is timing and knowing your niche real estate market.

Legal Requirements to Start a Real Estate Company in Dubai

Here’s what you need to legally operate a real estate company in Dubai:

• Commercial License from the Dubau Department of Economic Development (DED)
• RERA Certification for you and your employees
• Office Premises (physical presence is mandatory for mainland companies)
• Local Sponsorship if choosing the mainland setup

You also need to register with the Dubai Land Department (DLD). Plus, you will need to apply for relevant permits depending on your activities.

Step-by-Step Process: How to Set Up a Dubai Real Estate Company

The following are the steps for setting up a real estate company in Dubai:

1. Define Your Business Activity
   Dubai’s Department of Economic Development (DED) has specific activity codes for real estate businesses, such as brokerage, leasing, property management, or real estate development. So, pick the activity that suits what you’re going to do after opening your company. It is essential to decide this early on because it will determine which license you will need and your eligibility for RERA certification.
2. Select a Jurisdiction
   Your choice between mainland, free zone, and offshore determines ownership rights, operational scope, and regulatory authority. Mainland companies in Dubai can do business anywhere within Dubai and also across the borders as there are no restrictions like free zone companies. Free zone companies in Dubai can do business within the freezone itself and trade internationally; however, they cannot trade with mainland unless they have a local service agent.
3. Choose the Legal Structure
   You can opt for a Sole Proprietorship, Limited Liability Company (LLC), Civil Company, or a Branch of a Foreign Company. LLC is the most preferred for real estate because it allows shared ownership and broader scope.
4. Reserve a Trade Name
   To register your real estate company name apply through the DED or your chosen free zone authority. The name must reflect your activity and follow UAE naming conventions (no religious or offensive terms), and it must be unique.
5. Initial Approval Application
   This greenlights your business idea. Submit passport copies of all shareholders, business activity, and proposed trade name. For free zones, submit through the online portals of authorities like DMCC, DSO, or IFZA.
6. RERA Certification
   Mandatory for all real estate brokers and agents. Enroll in a training course by RERA to get a certificate from RERA. The certificate needs annual renewal and ensures that agents understand Dubai’s laws and ethics.
7. Office Space & Ejari Registration
   Mainland businesses must lease a physical office. Ejari registration (official tenancy registration) is compulsory. For free zones, flexi-desk options may suffice, but this varies by zone.
8. Draft & Notarize MOA
   For LLCs, draft a Memorandum of Association (MOA) outlining ownership structure and capital contributions. Notarize it through a Dubai public notary.
9. Apply for License
   With all documents prepared, apply for your real estate license. This includes the trade license, tenancy contract, RERA certification, and approvals from DLD and DED (or free zone authority).
10. Register with DLD
    In the end, register your business with the Dubai Land Department to legally operate in the real estate market.

Hiring a business setup consultancy like Socialite Consultancy Services can streamline the entire Dubai real estate company setup process.

Types of Licenses for Real Estate Business in Dubai

Your license type depends on your business model. Here are the main options:

• Real Estate Brokerage License
• Property Management License
• Real Estate Developer License
• Real Estate Leasing and Renting License

All licenses fall under the purview of the Dubai Economic Department (DED) for mainland businesses and respective free zone authorities for free zones.

Dubai Real Estate Company Setup Process in Free Zones vs Mainland

Let’s see the difference between forming a real estate business in Dubai mainland and free zones.

Mainland Setup

• License Issuer: Department of Economic Development (DED)
• Ownership: Up to 100% foreign ownership is now allowed under specific business activities, thanks to the FDI law reforms. However, local service agents are still common.
• Scope: Can conduct business across all of UAE.
• Office Space: Mandatory; must lease physical premises registered with Ejari.
• RERA & DLD Registration: Mandatory
• Timeframe: 2–4 weeks, depending on document readiness and approvals

Free Zone Setup

• License Issuer: Respective free zone authority like DMCC, IFZA, or DSO
• Ownership: 100% foreign ownership allowed
• Scope: Primarily international; local trade requires a distributor or branch
• Office Space: Optional in many free zones; flexi-desk or co-working spaces available
• RERA Certification: Often not required for free zone real estate consultancies focused on international clients
• Cost: Can be lower due to bundled packages

For international investors focused on global markets, a free zone like Dubai Multi Commodities Centre (DMCC) might be ideal. For those who wish to operate within Dubai, Mainland Company Setup is necessary.

Challenges and How to Overcome Them

1. Complex Regulatory Requirements

Frequent updates to real estate laws make it even more complex.

Solution: Partner with a business setup consultancy. They offer end-to-end guidance, ensuring compliance with all regulatory bodies.

2. High Setup Costs

Setting up a real estate business isn’t cheap. You need to factor in license fees, RERA certification, office rent, and more.

Solution: Start small with a flexi-desk in a free zone, or opt for packages that bundle services. Review multiple jurisdictions before committing.

3. Market Competition

Dubai has hundreds of active real estate agencies, which is why you will need to have a unique value proposition.

Solution: Focus on niche markets such as luxury villas, short-term rentals, or commercial real estate. Provide superior customer service and build a strong online presence.

4. Staffing and Certification

Hiring RERA-certified professionals is necessary but adds to your operational costs.

Solution: Upskill yourself and your initial team with the required certifications. You can outsource certain operations initially to reduce costs.

5. Language and Cultural Barriers

While English is widely spoken, cultural nuances can affect deal-making and client relationships.

Solution: Learn basic Arabic phrases, respect cultural norms, and build trust with local clients through transparency.

Do you need help with launch of your real estate business in Dubai? Contact Socialite Consultancy Services now.

FAQs

1. Is a physical office for a real estate company mandatory?

For mainland companies, a physical office space is essential and must be registered with Ejari. This office is part of the regulatory requirement and is needed to obtain a trade license. In contrast, many free zones offer virtual or flexi-desk options, especially helpful for startups or solo entrepreneurs. However, as your business scales, you may still need to lease a dedicated space.

2. What certifications are required for Dubai real estate company?

The Real Estate Regulatory Agency (RERA) requires all brokers and real estate agents to obtain a professional certification. Certification ensures that you understand Dubai’s property laws, market ethics, and regulatory compliance. RERA certification must be renewed annually, and some roles may require advanced or specialized training depending on the business activities.

3. Can I start a real estate business remotely?

Starting a real estate company remotely is generally not possible in the mainland due to the physical office requirement. However, some free zones allow you to launch operations using virtual offices or flexi-desk setups. This can be a cost-effective way to begin if you’re testing the market or managing operations from abroad.

7. Is DED approval mandatory for real estate company?

Yes, if you’re setting up in the mainland, approval from the Department of Economic Development (DED) is essential. The DED handles trade name registration, license issuance, and initial approvals for all commercial entities operating within Dubai. For free zone companies, the respective free zone authority functions as the licensing and regulatory body, so DED approval is not required in that case.