For several decades, real estate has presented a low-risk investment opportunity in many countries. However, the resulting price inflation in property hotspots like London and Hong Kong has closed the door on all but the wealthiest investors.
This is not the case in Dubai, where rapid new developments and growing demand from residents continue to produce property options at various investment levels. And many have the potential to give better yields than properties in some of the world’s most desirable cities.
So, if you’re looking to invest in this lively market, keep reading to find out the following:
- What do property investment companies do?
- Property investment license in Dubai – step-by-step
- Cost of getting a property investment license in Dubai
- Advantages of starting a property investment business in Dubai
- How Worldwide Formations can help
What do property investment companies do?
There are several types of property investment company. Some advise clients on suitable investments, while others manage property portfolios on behalf of investors. One of the most popular in Dubai, however, is a service that buys and then leases or sells property for profit.
If you are starting this type of investment property company, your primary activity will be finding and investing in suitable developments, rental properties, commercial units and other real estate that can provide a one-off or recurring income.
Property investment license in Dubai – step-by-step
When starting any business in Dubai, the first step is to talk with a local expert. The team at Worldwide Formations will take the time to learn about your business and its requirements.
Once we understand what you need, we can guide you through the following process, liaising with all relevant authorities as required.
Step 1: Choose your business activities
The first important step is to outline your intended business activities. With regards to a property investment company, you will need to clarify whether you will be managing a portfolio for someone else or purchasing real estate through your company.
These details can impact the type of setup and license you require, so once we understand what you wish to do, we can advise on the most suitable way forward.
Step 2: Registering a company name
Next, you will need to choose and register your company name. When starting a business in the UAE, your business name cannot be the same as one used by an existing business in the country.
In addition, it should not contain any blasphemous or offensive language or have any religious connotations.
Step 3: Appling for your property investment license
With these administrative decisions made, you can now apply for your property investment license. This will allow you to buy and hold real estate in the UAE.
The process of obtaining this license in the UAE will differ slightly depending on whether you plan to set up in the mainland or a free zone. If you start a mainland business, you may also require additional permits before you can start trading.
Whatever you choose, the team at Worldwide Formations will manage this process for you, liaising with all government bodies and relevant authorities on your behalf.
Step 4: Applying for UAE visas
As a company owner and an investor in UAE real estate, you are eligible to apply for a UAE residency visa. At the same time, you can sponsor your family and employees for visas, too.
Obtaining a UAE visa is a four-stage process — obtaining an entry permit, passing a medical examination, submitting your ID registration, and getting your visa stamp from Immigration. Once again, our experienced team can guide you through this process.
Step 5: Opening a corporate bank account
To freely make and receive payments within the UAE, you’ll need a corporate bank account. There are many banks available for business in the UAE, including both local and international brands. Once again, we can advise on the ones most suited to your requirements.
Cost of getting a property investment license in Dubai
The capital you invest is the largest cost involved in starting and running a real estate business. But this aside, you’ll also need to account for the cost of your trade license, which is usually in the range of AED 10,000 to AED 30,000.
On top of this, you need to consider the costs of additional permits, visas and any staff that you wish to employ.
For a full and personalised breakdown of the costs involved in starting a UAE property investment business, get in touch with the team at Worldwide Formations for quote.
Advantages of starting a property investment business in Dubai
There are many advantages to starting a business in Dubai. For one, the UAE’s location at the heart of the Middle East makes international travel easy. Dubai is home to one of the busiest airports in the world, with direct links to Europe, Africa, Asia and the US.
Then there is the country’s attractive tax regime, with a zero rate on personal and corporate income. There is also no tax levied on property purchases, and foreign investors are now permitted to own Dubai real estate outright.
However, yields are one of the biggest benefits of starting a property investment company in Dubai. In recent years, the emirate has outperformed the likes of London and New York, with returns of almost 8% reported in 2022.
Finally, Dubai is one of the safest and most stable places to live in this part of the world, ranking highly in quality of life and expat indices.
How Worldwide Formations can help
Investing in Dubai real estate can be a rewarding experience, and not just from a commercial point of view. As the owner of a property investment business, you will be free to live and work in this rapidly evolving and business-friendly part of the world.
However, getting started is not always easy, and it demands an expert eye. Fortunately, the team at Worldwide Formations has all the expertise you need to get your business up and running.
We’re vastly experienced in the process of setting up enterprises such as a property investment business in Dubai, UAE. With their local knowledge, our consultants can navigate the complexities with skill and speed to ensure your consultancy is operational as soon as possible. For more information and a personalised quote, please visit Worldwide Formations.