With the ever-growing popularity of Dubai as a destination for international investors, it is no surprise that the demand for real estate agents is rising quickly. If you are considering a career in real estate or are already working in the industry and looking to move to Dubai, you will need to obtain a real estate licence to comply with the legal requirement.
This article will outline the steps you need to take to get a real estate licence in Dubai. We will also touch on why Dubai is an attractive destination for real estate professionals and what you need to do to establish your real estate business in the city.
There are many probable reasons to consider getting a real estate licence in Dubai. The UAE is one of the most popular destinations for global investors, meaning there is a high demand for real estate agents with the relevant skills and knowledge to cater to this market.
When evaluating the prospects of establishing your career in Dubai as a real estate broker, consider the following two aspects.
- Real estate market in Dubai, and
- Career growth as a real estate agent Dubai.
Let’s break those down in more detail.
The real estate market in Dubai is white-hot. Here are a few quick stats to go through
- Capital growth
The Savills Prime Residential Index has ranked Dubai as the 4th most promising city globally considering six-month capital value growth, followed by only Miami, Los Angeles and San Francisco. The study also concluded that there are no signs of the Dubai real estate market slowing down anytime soon, and Dubai has claimed its spot in the top five as the only non-US city.
- House rent growth
What’s in Dubai for housing investors who want to earn from housing rent? The Savills study has also considered the housing rental growth over the past six months. With a prime rental growth of 5.3%, Dubai has ranked 7th among major global cities.
- Governmental support for low-income citizens
The Dubai government also has housing plans for low-income citizens. The government has announced plans to finance and invest $1.72 billion to construct new residential homes and develop new residential lands over the next few years through the Sheikh Zayed Housing Program (SZHP), reported Arab News.
- Influx of expats
As Dubai has welcomed an increasing number of expats after the pandemic has eased, Dubai Land Department (DLD) has reported a 60% higher number of property transactions in the first half of 2022 compared to the same period in 2021. If you take the total value into account, the increment is even more prevalent, approximately 85%.
With such a booming market, now is the ideal time to get your real estate licence in Dubai. Now we will see what Dubai offers to real estate brokers regarding career prospects.
As a real estate agent in Dubai, you can expect to earn an excellent salary. In addition, many other benefits come with the job.
The average salary for a real estate agent in Dubai is AED 15,000 per month. However, experienced agents can easily earn up to AED 48,000 per month or even higher, according to Glassdoor and SalaryExpert. In addition to the monthly salary, real estate agents in Dubai also receive a commission on each property they sell or rent. The commission is usually a percentage of the total value of the property.
In addition to the monthly salary and commission, many real estate companies in Dubai also offer their employees other benefits such as health insurance, car allowance, and housing allowance.
As a real estate agent in Dubai, you will have the opportunity to meet new people worldwide and help them find their dream homes. If you are looking for a challenging and rewarding career, then a career as a real estate agent in Dubai is the perfect choice for you.
If you want to pursue an exciting career as a real estate agent in Dubai or establish your own real estate brokerage business, there are specific steps you must take, as shown below.
- Obtain a Valid Residence Permit
If you are an expat looking to start your real estate career in Dubai, you will need a valid residence permit in the UAE. There are quite a few visa and permit options in the UAE, and the most suitable one depends on your circumstances and a long-term settlement plan.
Virtuzone consultants can help you identify the right residence option and guide you through the application and documentation process.
- Get RERA Certification
Dubai’s Real Estate Regulatory Authority (RERA) oversees the city’s real estate professionals, practitioners, and businesses. You must pass the RERA exam to become a certified real estate agent in Dubai.
- Obtain Real Estate Licence
After getting your RERA certification, you must apply for a real estate licence from the Dubai Land Department (DLD). The licence application process involves a few steps, including a trade name reservation, obtaining a No Objection Certificate from Dubai Economy & Tourism (DED), and submitting all the required documents.
- Set Up Your Business
Finally, you can establish your real estate business in Dubai if you want to. The company formation process is also straightforward when you have the relevant documents.
Now we will take a closer look at the process mentioned above.
Obtaining a RERA certification in Dubai is a two-step process. First, you will have to participate in a formal training program. Then, you can sit for the RERA exam.
The Innovation Experts Real Estate Institute (IEREI) is a dedicated and government-authorised training institution in Dubai that offers various professional training and certification programs for aspiring real estate professionals and students.
Completing the Real Estate Brokerage Training Certificate is a prerequisite to applying for the RERA real estate broker examination and obtaining a certificate.
The 20-hour training program typically costs you AED 3,000, and you can choose from online and offline (delivered through Zoom) lesson systems and a few class schedules. IEREI also offers occasional discounts on course fees.
The course comprehensively covers every aspect of the Dubai real estate business. You will learn all you need to know from nine-course modules, including
- History and development of real estate business in Dubai,
- Real estate business establishment,
- Real estate sales and agreement process,
- Leasing and rental procedure and documentation,
- Ethics for real estate professionals,
- Legal areas,
- Sole and joint ownership of properties, and
- Essential soft and technical skills to excel as a broker.
To sign up for the test, you must submit a copy of your Emirates ID and valid residence visa.
Once you complete the training course, it is time for you to attempt the RERA certification or RERA licensing exam.
RERA is the regulatory wing of the Dubai Land Department (DLD). You must attend and pass the Real Estate Brokerage License Test, which is also known as the RERA Certification test, to begin your professional real estate broker career. At present, the test registration costs AED 700.
The certification exam aims to ensure the credibility of real estate professionals and implement sound business practices throughout the industry. You must score at least 85% on the test to obtain your licence, which remains valid for a year.
RERA has now made it mandatory to undertake and pass the yearly test to keep your licence valid.
After passing the RERA test, you can apply for a formal real estate broker licence from DLD. You can sign up for the test and apply for the licensing online from the DLD website or the Dubai REST app, available on Google Play Store and Apple App Store.
You will also need a Police Clearance Certificate (PCC) from the Dubai Police to get your real estate broker licence. You can apply for the PCC from the Dubai Police website by paying an application fee of AED 320.
Once you provide your exam and certification details in the real estate e-services platform, you will receive the licence instantly. Having the licence means DLD will list your contact details on their website as one of the authorised real estate agents.
Real estate customers can easily access this website and find you from the database. The broker’s profile contains several pieces of information, such as
- Personal details,
- Office details,
- Sale transactions,
- Ongoing and completed projects,
- Ranking, and
Customers looking to buy real estate properties can use different filters on this database to find the most suitable broker for their project.
Once you become a certified real estate broker in Dubai and enlist on DLD’s portal, it’s time to get to work. You may work for an existing real estate employer based in Dubai or form a real estate company in Dubai as your business venture. For the latter, you will also need to obtain a trade licence in Dubai and the broker licence.
Here’s a walkthrough of how you can get a commercial or trade licence in Dubai for your real estate broker business.
The Department of Economy and Tourism in Dubai (DED) oversees the licensing process for any business or commercial establishments in Dubai.
There are a few different licensing options for the real estate companies, such as:
- Buying and selling of real estate: Code 6810001
- Real estate finance: Code 6492001
- Real estate development: Code 6499004
As a professional real estate broker, you must apply for a commercial licence under code 6810001, which will allow you to buy and sell commercial and residential real estate properties across Dubai.
DED has established a separate licensing service wing known as Invest in Dubai that lets you apply for a commercial licence online and obtain it almost instantly.
Alternatively, you may visit one of the DED’s physical service centres around Dubai and submit your application during business hours. When applying for your real estate trade licence, you will first have to apply for initial approval, which will cost you AED 120. You will also have to book a trade name by paying AED 600.
You will get your initial approval instantly, and then you can use it to rent an office space for your real estate brokerage business in Dubai. Dubai offers plenty of options for office rentals.
If you want to set up your office in one of the busiest locations, you can try one of the Dubai free zones, which are easily accessible through all modes of transport. Setting up an office in one of the free zones may cost you approximately AED 12,000 or higher.
However, if you are looking for a more cost-saving option, you may also choose one of the shared coworking spaces in Dubai. A shared space can be a very suitable option because you can use the office facilities based on your need without making a long-term commitment. You may also obtain an office address from one of the virtual office providers in Dubai, which allows you to receive postal mail and use other facilities on an on-demand basis.
Once you have your office address, you can return to the Invest in Dubai website and apply for the trade licence by paying AED 600. Your licence will remain valid for one year, and you will get an SMS notification well ahead of the expiry date so that you can complete the renewal process in time.
So, you have a good overview of what is required to get a real estate licence in Dubai. You can see that the process is not overly complicated, but you need to take a few key steps to ensure correctness. Virtuzone covers you with a full range of services related to living and working in Dubai and the UAE.
Our expert consultants can assist you with applying to get your real estate licence in Dubai from start to finish. You can then establish your real estate business in Dubai and take advantage of the city’s many opportunities. Get in touch with Virtuzone today.