Cost to Start a Real Estate Company in Dubai (Mainland vs Free Zone)
Dubai is real estate sector is really active. Gets attention from investors and companies from other countries. People who want to start a real estate business in Dubai need to know about the costs and what licenses they need to get. They also need to understand the differences between setting up a business in Mainland Dubai and in a Free Zone. This guide will tell you everything you need to know to start your real estate business in Dubai and do it well. Dubais real estate business is unique. People need to plan carefully. The real estate business, in Dubai can be very successful if you have the information.
Why Dubai is Ideal for Real Estate Businesses
Dubai is a place to invest in property. The city is getting more and more people moving there which means people need places to live and work. This is because a lot of people from countries and professionals are moving to Dubai. Dubai has good roads and buildings and it is easy to own property there. The city of Dubai has everything you need from homes to offices and the laws are clear when it comes to buying and selling property in Dubai. Dubai is a choice, for people who want to invest in property because of all these things.
The government helps businesses by offering good tax deals, like zero percent corporate tax for a lot of industries and it lets companies take all their profits back home. This makes Dubai a great place for real estate companies like the ones that help people buy and sell properties, companies that manage properties, agencies that give advice and companies that use technology to come up with property solutions. Dubai is really good, for real estate companies because of this.
There are kinds of activities that need a real estate license.
These real estate activities include things like selling homes and helping people buy homes.
Real estate license is necessary for real estate activities such as renting out homes and managing properties.
Some other real estate activities that require a real estate license are negotiating real estate deals. Showing homes to people who want to buy them.
Real estate activities, like these need a real estate license to make sure everything is done fairly and legally.
In Dubai a real estate business usually does one or more of these things:
Real Estate Brokerage: Legally representing buyers, sellers, or lessors in property transactions.
Property Management: Managing properties on behalf of owners, including tenant management, maintenance, and rent collection.
Consultancy & Market Advisory: Providing property investment advice, feasibility studies, and market insights.
Marketing & Lead Generation Services: Promoting real estate projects and generating leads for brokers and developers.
It is important to note that real estate brokerage specifically requires approval from Dubais Real Estate Regulatory Agency, which is also known as RERA whether your company is set up in the Mainland or a Free Zone. The real estate brokerage needs to get this approval to operate in Dubai. The Dubais Real Estate Regulatory Agency or RERA is very strict about this rule. So if you want to start a real estate brokerage in Dubai you need to get approval, from the Dubais Real Estate Regulatory Agency or RERA.
Mainland vs Free Zone: Key Differences
Mainland Real Estate Setup
A company that deals with estate in Mainland is given a license by the Department of Economy & Tourism. To get this license the company needs to have an office in Dubai. The company also has to follow the rules that the local government has made for businesses.
Mainland real estate companies can do business anywhere in Dubai and the United Arab Emirates without any restrictions.
If a Mainland real estate company wants to act as a broker it needs to get approval from RERA.
This kind of setup is really good for companies that want to sell, lease and broker properties in the area. Mainland real estate companies, like this can focus on property sales, leasing and brokerage.
Free Zone companies get a license from the people in charge of a free zone like DMCC, JAFZA or Dubai Silicon Oasis. These Free Zones let people from countries own the entire company and they usually have flexible office options, like virtual offices or shared workspaces where lots of companies work together.
Free Zone companies can do lots of things. If they want to buy and sell properties directly in Dubai they might have some problems. This way of setting up a company is good for people who want to give advice on estate create tech solutions do marketing or provide support services that do not involve buying and selling properties directly. Free Zones are really useful for these kinds of businesses, like real estate consultancy, tech solutions, marketing or support services because they do not need to buy and sell properties themselves.
Here is what the cost breakdown looks like. This is what you will pay when you do business with us.
The cost breakdown is very important, to us. We want to make sure you know what the cost breakdown is.
So here it is:
* The cost of the product is included in the cost breakdown.
The cost breakdown also includes the cost of shipping.
We do this so you know what you will pay.
The cost breakdown is what you will pay. It is very clear.
When planning to set up a real estate company in Dubai, there are several costs to consider:
The cost of Mainland license fees is usually between AED 15,000 and AED 20,000. On the hand Free Zone licenses can cost anywhere from AED 12,000 to AED 25,000 and this really depends on which authority you choose to go with.
For both Mainland and Free Zone setups you need to get approval from RERA so you can do brokerage activities. This approval from RERA costs around AED 10,000, to AED 11,000.
Brokers also need to get their RERA broker cards and these cards cost about AED 2,100 for each person who needs one.
Setting up a business on the mainland means you need an office with a valid Ejari, which is a tenancy contract. This can be expensive it costs between AED 15,000 and AED 50,000 every year. The cost depends on where the office’s how big it is.
Free Zones are different they often have flexi-desk options. You can share an office with others. This can be cheaper it costs between AED 10,000 and AED 30,000 per year. Free Zone offices are good because they are flexible and can save you money. However Free Zone offices may not give you access, to Dubais property market, which is a disadvantage of Free Zones.
The cost of an investor visa or an owner visa is between AED 3,500 and AED 7,000. For employee visas the cost is usually between AED 3,000 and AED 6,000 for each person. This cost includes things like tests and getting an Emirates ID. These visa costs are, for both Mainland companies and Free Zone companies. However the number of visas you can get which is called the visa quota may be different depending on the type of package you choose for your Mainland company or Free Zone company.
- Professional and Regulatory Costs
All real estate businesses have to follow the RERA regulations.
The brokers need to take the RERA training and pass the RERA exams.
This RERA training and RERA exams will cost each person between AED 2,500 and AED 5,000.
There are things that real estate businesses need to pay for.
These things include setting up a bank account which can cost around AED 2,000 to AED 5,000.
Real estate businesses also need to get business insurance.
This business insurance includes something called indemnity.
The cost of this business insurance can be, between AED 4,000 and AED 10,000 every year.
The real estate businesses have to pay this amount for the business insurance every year.
Estimated First-Year Costs
When we talk about a Mainland real estate company the costs for the year can be pretty high. The Mainland real estate company may have to pay between AED 50,000 and AED 100,000. This is because the Mainland real estate company has to pay for a lot of things, like the license, RERA fees, office rent, visas, insurance and other costs to make sure they are following all the rules.
When you set up a company in a Free Zone the costs for the year are usually not that high. They can be as low as AED 32,000 and as high as AED 75,000. The good thing about Free Zone setups is that they give you freedom to choose your office space and you can own the company fully even if you are not from the United Arab Emirates. However if your company wants to do business in Dubai there may be some rules, about working with brokers that you have to follow for your Free Zone setup.
Choosing Between Mainland and Free Zone
Free Zone Advantages:
Lower upfront costs
100% foreign ownership
Flexible workspace options
Ideal for consultancy, tech solutions, or support services
Free Zone Disadvantages:
Restrictions on direct brokerage
Limited access to the UAE local market without a Mainland partner
Mainland Advantages:
Full access to Dubai’s property market
Recognized for all types of commercial real estate activities
Ability to directly broker deals
Mainland Disadvantages:
Higher setup costs due to office, visa, and licensing requirements
Mandatory physical office
So you want to start a business in Dubai. If your main business is about buying and selling properties it is better to set up your company in the Mainland area. This is true even if setting up a company in the Free Zone area seems cheaper at first. On the hand if your business is about helping people with real estate setting up a company in the Free Zone area can be a good option because it can save you money. Property brokerage in Dubai is a business so Mainland setup is a good choice for property brokerage, in Dubai.
Hidden Costs and Considerations
When you start a real estate company you have to think about a lot of expenses. You have to pay for licenses and offices. You also have to pay for marketing, staffing and technology for your real estate company.
If you want to list properties on websites like Bayut and Property Finder you have to pay them a fee every month or every year. This fee can be as low as AED 3,000 or as high as AED 20,000 per year for your real estate company.
You also have to pay your employees like brokers. This can cost a lot of money for your real estate company. Experienced brokers get a salary and a commission, which can add up to a lot of money for your real estate company.
Then there are tools like CRM tools, lead generation software and analytics solutions that your real estate company needs to buy. These tools can cost between AED 5,000 and AED 20,000, per year for your real estate company.
Big real estate companies may also have to give bank guarantees to developers or to operate at a volume. This is another expense that your real estate company has to think about.
Tips to Reduce Setup Costs
Start with a Free Zone flexi-desk to save on office rent initially.
We should only give out a number of visas at first and then increase the number of visas as the company makes more money. This way the number of visas will go up as the revenue, from the visas grows. The company can start with a number of visas and then add more visas later on as it gets more revenue from the visas.
Outsource PRO services to reduce administrative burden.
Consider strategic partnerships with existing brokers to reduce initial setup costs before establishing a full-fledged brokerage.
Summary: Mainland vs Free Zone
When you are setting up a business in Dubai you have two options: a Mainland setup or a Free Zone setup. A Mainland setup gives you access to Dubais property market. This means you can do brokerage activities. However it is more expensive. You need an office.
On the hand a Free Zone setup is cheaper. You can also own the business completely as a foreigner. This setup is more flexible. But there is a catch: you might not be able to do property brokerage.
So which setup is best for you? It really depends on your business. Consider what you want to achieve and who your clients are. Think about how you want your business to grow in the term. Choose a setup that fits with your Dubai property business model, your target clients and your long-term growth plans, for your Dubai property business.
Dubai remains a lucrative destination for real estate businesses, and understanding the costs, regulations, and opportunities upfront will help ensure a successful and sustainable operation in one of the world’s most dynamic property markets.
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