How to Start a Real Estate Business in Dubai

Dubai’s luxury real estate market is booming. In Q3 2025, 103 homes sold for over $10 million, marking a 24% year-on-year surge that indicates high demand for premium properties. 

However, tackling the complexities of starting a real estate business in Dubai can be daunting for U.S. entrepreneurs looking to tap into this lucrative market. Whether it’s understanding local regulations, securing financing, or finding the right market entry strategy, the process can quickly become overwhelming.

This guide will walk you through the steps to launch a real estate business in Dubai, from legal requirements to choosing the right business structure. You’ll gain the insights needed to make informed decisions and set yourself up for success in one of the world’s most dynamic real estate markets. 

Key Takeaways

• Booming Market: Dubai’s real estate market continues to grow, driven by high demand for luxury properties, increasing villa prices, and substantial transaction volumes.
• Business Structure Matters: Choose between Mainland, Free Zone, or Offshore company structures, each offering unique advantages depending on your goals and operations.
• Licensing is Essential: To legally operate, you’ll need the right licenses, such as a Real Estate Brokerage License from DLD, RERA certification, and Ejari registration for rental agreements.
• Compliance with Local Laws: It’s crucial to follow Dubai’s legal frameworks, including RERA regulations, and ensure compliance with anti-money laundering (AML) laws for transparency in transactions.
• Market Opportunity: Dubai’s favorable tax policies and high returns on investment make it an attractive destination for foreign investors looking to enter the real estate sector.

Understanding Dubai’s Real Estate Market Share in 2025

Dubai’s real estate market in 2025 is experiencing remarkable growth, influenced by shifting demographics, technological innovations, and growing investor preferences. As the UAE recovers from the pandemic and adjusts to economic shifts, Dubai remains a central player in the global real estate sector.

Here’s an overview of what’s shaping Dubai’s market in 2025:

•  The UAE real estate market reached USD 36.92 billion in 2024 and is projected to grow at a CAGR of 3.07%, reaching USD 49.96 billion by 2033. 
• Dubai’s property market continues to hit new highs, with a surge in property transactions and values. In Q3 2025, 70% of property sales were off-plan, totaling Dh79.34 billion.
• Dubai's property sales value increased by a staggering 379.9% over five years to $136 billion in 2025, signaling sustained investor confidence and long-term market stability.
• Villa prices have risen by 29% year-on-year, with iconic communities like Palm Jumeirah and Jumeirah Islands experiencing even greater price hikes of 40% or more.

These statistics highlight Dubai's dynamic real estate market, characterized by strong growth in residential and commercial sectors. While the market’s overall outlook is positive, these factors highlight a complex landscape that investors must handle carefully. 

To fully capitalize on this market, it is crucial to understand the appeal of starting a real estate business in Dubai.

Why Start a Real Estate Company in Dubai?

Starting a real estate business in Dubai offers numerous advantages. Here are the key benefits that make Dubai an ideal destination for real estate ventures:

• Booming Real Estate Market: Dubai's real estate sector is one of the world’s most attractive, experiencing constant growth. Rising demand across various segments creates numerous opportunities for real estate companies to thrive.
• Prime Location: Situated at the crossroads of Europe, Asia, and Africa, Dubai is a global economic hub. This strategic location provides real estate businesses with easy access to a broad, international client base and potential collaborators.
• Top Infrastructure: Dubai has made significant investments in modern transportation, communication, and utility infrastructure. These world-class facilities streamline business operations and enhance property accessibility for clients.
• Stable and Diverse Economy: Dubai's economy is stable and diversified, with the real estate market being a key pillar. The government ensures market stability and transparency, providing a secure foundation for real estate enterprises.
• Ease of Doing Business: The Dubai government has simplified business operations, offering efficient licensing processes, a strong legal framework, and a supportive regulatory environment for entrepreneurs.
• Favorable Tax Policies: One of Dubai’s most attractive features is its favorable tax structure. With 0% personal income tax and limited corporate tax, real estate businesses can significantly boost their profitability.
• High Returns on Investment: Dubai offers some of the highest returns on investment in real estate, driven by a growing population, strong demand, and a thriving tourism sector.

These key factors combine to make Dubai an excellent choice for real estate ventures, offering both growth potential and a stable environment for businesses to flourish.

Now that you understand the advantages, let’s explore the different types of real estate businesses that are thriving in this dynamic market.

Types of Real Estate Businesses Thriving in Dubai

Dubai's real estate domain is diverse, with business models catering to investors and residents. Here are the key types driving the market:

1. Real Estate Brokerage Firms

These firms connect buyers with sellers and landlords with tenants. They offer more than just property listings, providing market insights, pricing strategies, and guidance on legal paperwork. 

2. Property Management Services

Property management firms handle everything for owners, from maintenance and inspections to rent collection and lease renewals, making the process hassle-free. They ensure landlords have a steady income while offering smooth living experiences for tenants.

3. Land Development Companies

These businesses transform raw or underdeveloped land into residential or commercial spaces. Land developers work closely with architects, contractors, and government agencies, requiring long-term planning and regulatory knowledge. 

4. Real Estate Agencies

Focused on personalized services, real estate agencies assist clients at every stage, from creating listings to handling negotiations and closing paperwork. Their success is driven by client trust, a broad property portfolio, and effective marketing strategies.

Property management firms handle everything for owners, from maintenance and inspections to rent collection and lease renewals, making the process hassle-free.

Next, let’s understand the licenses you’ll need to operate legally in Dubai.

Types of Licenses Required to Start a Real Estate Business in Dubai

To operate a real estate business in Dubai, you’ll need to obtain various licenses to ensure compliance with local regulations. Here's a breakdown of the key licenses you'll need:

• Trade License: Issued by the Department of Economic Development (DED), this license authorizes you to legally run a business in Dubai. It’s the foundational license for any business.
• Real Estate Brokerage License: Issued by the Dubai Land Department (DLD), this license is essential for engaging in real estate brokerage activities, including buying, selling, and renting properties.
• RERA Certification: Overseen by the Real Estate Regulatory Agency (RERA), this certification is mandatory for brokers and agents. It involves completing a training course and passing the RERA exam.
• Ejari Registration: Required for managing rental agreements, Ejari registration ensures that all tenancy contracts are formally registered and governed by the Ejari system.
• Property Management License: Issued by DLD, this license is necessary if you plan to offer property management services, such as maintenance and tenant relations for property owners.
• Developer’s License: If you’re involved in land development, this license is issued by RERA. It’s needed for businesses that manage or develop land for residential or commercial use.
• Real Estate Valuation License: For companies offering property valuation services in Dubai, this license is required and issued by RERA.
• Educational License: This license is required if you plan to offer educational services, such as training courses in real estate practices or other related fields.
• Healthcare License: If your real estate business provides healthcare services (e.g., clinics or medical centers), you’ll need this license to operate within legal boundaries.

Each of these licenses serves a specific purpose, ensuring that your real estate business complies with Dubai’s regulations and delivers services within the legal structure.

Also Read: Complete Guide to Accounting for Real Estate 2025

Once you have a clear idea of the licenses, you’ll need to gather some important documents to move forward with your business setup.

Documents Required to Start a Real Estate Business in the UAE

Starting a real estate business in Dubai involves tackling a well-defined process governed by authorities like the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). Here’s a breakdown of the key documents you'll need:

• Passport Copies: A valid copy of your passport for all company owners and partners.
• Emirates ID: Required for UAE residents; non-residents must have a local sponsor or partner.
• Business Plan: A comprehensive plan outlining your business model, goals, and market strategy.
• Trade Name Reservation Certificate: This confirms that your desired business name is available and registered.
• Initial Approval Certificate: Issued by the Department of Economic Development (DED), confirming initial approval for your business activities.
• Memorandum of Association (MoA): This document outlines the company structure, ownership details, and the rights of the partners.
• Tenancy Contract / Ejari: A legally registered contract for your office space, which is mandatory for your trade license application.
• Real Estate Activity Approval from DLD & RERA: Approval from these two authorities to ensure your business complies with the specific real estate laws in Dubai.
• Trade License (DED or Free Zone): Depending on your business structure, you’ll need a trade license from either DED or a free zone authority.
• Company Bank Account Opening Documents: These include proof of business registration and personal identification for opening a corporate account.

Legal Framework & Regulatory Compliance

To operate in the UAE’s real estate sector, you’ll need to comply with the following legal regulations:

• Federal Law No. (5) of 1985 (Civil Transactions Law): Governs all civil transactions in the UAE, including real estate.
• Dubai Law No. (7) of 2006 (Concerning Real Property Registration in Dubai): This law regulates the registration and transfer of real estate in Dubai.
• RERA Regulations: These guidelines cover broker conduct, advertising, and escrow accounts to ensure transparency in the real estate market.
• Anti-Money Laundering (AML) Compliance: Real estate businesses must adhere to AML laws to prevent illegal financial activities in transactions.

Pro Tip: It’s highly recommended to work with a business solutions firm, especially if you’re a foreign investor. VJM Global can provide expert guidance on regulatory compliance, accounting outsourcing, and company registration to ensure a smooth market entry. Talk to an expert today. 

After securing the necessary documents, you can follow a clear set of steps to establish your real estate business in Dubai.

Steps to Set Up a Real Estate Business in Dubai

Setting up a real estate business in Dubai involves several structured steps to ensure compliance with local regulations and successful market entry. Here’s a clear guide to help you handle the process:

1. Choose the Right Business Structure

Dubai offers several legal structures: Mainland, Free Zone, and Offshore, each suited for different goals.

• Mainland companies can operate anywhere in the UAE with flexibility in activities.
• Free zone companies enjoy 100% foreign ownership and zero taxes, but are limited to operating within the free zone unless granted special permissions.
• Offshore companies are best for international trading and asset holding, but not for real estate brokerage or development.

2. Obtain a Real Estate License

You must secure a real estate license from the Dubai Department of Economic Development (DED) or a Free Zone Authority. Choose the license type based on your business activity:

• Brokerage License: for property brokers.
• Development License: for property developers.
• Leasing License: for property leasing and management firms.

3. Register with the Dubai Land Department (DLD)

The DLD oversees and regulates real estate operations in Dubai. All brokers and agents must also obtain RERA (Real Estate Regulatory Agency) certification and pass the RERA exam before commencing business.

4. Set Up Your Office Space

A physical office is mandatory for most real estate businesses in Dubai.

• Mainland companies must lease or own office space for DLD compliance.
• Free zone businesses can operate through virtual offices, depending on the zone’s requirements.

5. Hire Qualified Real Estate Agents

Recruit RERA-certified agents who have completed the required training and exams. Ensure your team understands Dubai’s property laws and market dynamics to deliver trustworthy client service.

6. Open a Corporate Bank Account

Once registered, set up a corporate bank account in Dubai. Many banks offer specialized services for real estate firms, including escrow accounts and mortgage support.

7. Choose the Appropriate Company Legal Form

Options include LLC, Sole Establishment, Branch, Joint Venture, and Partnership structures. LLCs are ideal for multi-partner ventures with limited liability.

• Sole Establishments are owned by one individual, offering full control but full liability.
• Civil Companies and Holding Companies are also recognized, depending on your goals and ownership preferences.

8. Get the Necessary Trade Licenses

A trade license is essential to validate and legalize your business operations. Choose from Commercial, Tourism, Professional, or Industrial licenses based on your activities. Licenses must be renewed annually to remain valid.

9. Secure External Approvals (If Required)

Some real estate activities require additional approvals from specific government authorities, such as:

• Ministry of Interior: For safety-related services.
• Municipality Departments: For architectural or engineering activities.
• Ministry of Justice or Central Bank: For legal and financial services.

Check with the DED or free zone authority to confirm any additional approval needs.

10. Decide on Ownership

Foreigners can now own 100% of their companies in most sectors, including real estate. However, certain strategic industries (like banking or defense) still require a UAE national partner.

If you're looking to tackle ownership regulations and establish your real estate business in Dubai, VJM Global offers comprehensive support. From licensing and approvals to regulatory compliance, our expert consultants ensure a seamless setup. Contact us today for personalized assistance. 

11. Understand the Role of a Public Relations Officer (PRO)

A PRO acts as a liaison between your business and the UAE government authorities. They manage documentation, visa processing, and license renewals, while also ensuring regulatory compliance. Partnering with an experienced PRO helps streamline the administrative process and avoid costly delays.

Setting up a real estate business in Dubai is a structured yet rewarding process. With the right business model, licensing, and professional guidance, entrepreneurs can build a strong foundation in one of the world’s most dynamic property markets.

Also Read: Outsourced Tax Services to India: A Guide for US Companies

Setting up your business is just one part; it’s also important to understand the costs involved in getting your real estate business up and running.

What is the Cost of Setting up a Real Estate Business in Dubai?

Starting a real estate business in Dubai entails various costs, including licensing fees and office space leasing. Here’s a breakdown of the key expenses involved in setting up your real estate business:

The total cost of setting up your real estate business in Dubai will depend on various factors such as the size of your company, location, and staffing needs. 

Conclusion

Starting a real estate business in Dubai offers immense potential, but it’s essential to understand the regulatory domain and set up the right foundations from the start. By selecting the right business structure, obtaining the necessary licenses, and ensuring compliance, you can navigate the complexities of the Dubai market with ease.

Starting a real estate business in Dubai can be complex, but with VJM Global by your side, you can streamline the process and ensure compliance every step of the way. Here's how VJM Global can support your expansion:

• Business Setup Advisory: Tailored strategies for establishing your real estate business in Dubai, ensuring compliance with local regulations and smooth market entry.
• Accounting Outsourcing: Comprehensive services including bookkeeping, payroll, tax preparation, and financial reporting, all aligned with both Indian and U.S. standards.
• Audit & Assurance Services: Support for audit preparation, documentation, and review, ensuring adherence to global standards and enhancing operational efficiency.
• Cross-Border Taxation & Compliance: Expertise in navigating the complexities of international taxation, including FEMA and RBI regulations, facilitating seamless operations across borders.
• Strategic Business Consulting: Insights and guidance on market expansion, risk management, and operational optimization to drive growth and profitability.

Talk to our experts today and let VJM Global guide you through every step of establishing your real estate business in Dubai, from start to finish.

FAQs

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1. What are the starting costs for setting up a real estate business in Dubai?

Starting costs typically range from AED 21,000 to AED 45,000, covering licenses, office space, employee visas, and administrative fees.

2. What are the key steps to set up a real estate business in Dubai?

The steps include choosing a business structure, obtaining initial and RERA approvals, completing training, setting up your office, opening a bank account, and hiring staff.

3. What licenses are required to operate a real estate business in Dubai?

You’ll need a Trade License from DED, a Real Estate Brokerage License from DLD, RERA certification, and Ejari registration. Additional licenses may be needed based on your business activities.

4. Is it a good time to invest in Dubai’s real estate market?

Yes, Dubai offers high rental yields, a strategic location, favorable tax policies, and a growing market, making it an attractive investment destination.

5. What documents are required to set up a real estate business in Dubai?

Required documents include proof of passing the Real Estate Exam, passport, office space proof, RERA-registered accountant, official degree, clean criminal record, and recent bank statements.

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