Wednesday, 25 November 2015

Opening a Real Estate Agency in Dubai

Property prices in Dubai are softening with a new report by UK-based Global Property Guide (GPG) putting the pace of decline at 2.72 per cent for first quarter 2015. Real estate consultant JLL and Standard & Poor’s expect average house prices to fall by between five and ten percent in 2015. Dubai offers one of the most profitable investment opportunities in the UAE. It is preferred by investors due to its liberal laws and business-friendly environment.

Why Real Estate?

Dubai is a tax free economy with no income or capital gains tax, which makes it a lucrative destination both for residents and investors. Real estate has been one of the most successful small business investment opportunities in the UAE. Here are some reasons why you might consider investing in real estate.
  •  Property proves to be a good hedge against inflation. While at such times, high cost of debt servicing can be attributed as additional rent, you can do so even when the value of property inflates and the debt remains unchanged.
  •  Rental source of income is a fairly stable avenue of income as it can never fall to zero.
  •  Unlike shares and hedge funds, real estate always has a property value, which never falls to zero, not matter how severe the fluctuations in price.
  • Investors exercise more control over the timing, size and nature of investments. The main reason is that properties are tangible and available in diverse price ranges and sizes.
  • Real estate owners find it easier to procure loans, since banks are more willing to provide loans against collateral.
  • Property is open to an investor from any part of the world.
All the above mentioned advantages of the real estate sector can also be marketed in order to bring in customers. To open a real estate agency, you first have to get yourself a license from the Real Estate Regulatory Agency (RERA). Also, you will have to sign up for a course with RERA before you set up shop.
College degree holders take the Real Estate Certified Practitioner’s Training Course, while non-degree holders will take the Real Estate Executive Diploma Program. You can register your company’s name and trade name under the Department of Economic Development.
Much of the procedure can be completed online. You might have to submit various documents for approval. This will get you a commercial license in Dubai. After you get a license, you need to get an office space and a landline phone.
If you are not interested in investing in real estate, then you can look for other investment opportunities in the UAE, such as trade, travel and tourism, food and more.