Starting a real estate business is easy in Dubai. Brokers flock to Dubai and the Emirates to capitalize on a growing housing market. Rent continues to increase in all of Dubai and adjascent emirates. Landlords are selling their properties. The market is booming. The total value of real estate transactions in Dubai surpassed AED155 billion this year, with brokerage commission reaching AED1.8 billion. So, how to obtain a real estate broker license in Dubai in 2014?
Dubai real estate market grows in 2014
The residential supply has grown from 342,000 housing units in 2011 to 372,000 in the second quarter of 2014. The supply will grow by 24,000 units according to a JLL recent report. The office supply grew by 1.1 million units from 2011 until the second quarter of 2014. The market continues to grow by a half million new units since the second half of 2014 and will continue to grow by 1 million additional units until 2016. The retail supply market is set to reach 3 million units in 2016.
Obtaining a broker license in Dubai
Dubai Economic Department (DED) grants licenses to sole-owner and multi-owned limited liability companies (LLC’s) to UAE nationals and foreigners. Dubai’s RERA (Real Estate Regulatory Agency) is the only authority body that issues broker licenses. Real estate businesses must be registered within Dubai Economic Department within the Brokers Registry.
Brokers are two types in Dubai:
A) Applicants of expertise, exempted from registration requirements by the Chairman of RERA.
B) Applicants who must apply for a license by the competent authorities.
for class B), application for registration in the Brokers’ Registry must include the following documents:
- A valid trade license issued by DED
- A membership certificate in the Dubai Chamber of Commerce and Industry
- An exact copy of the ownership certificate of the brokerage shop or the lease of it
- A certificate of good conduct for the establishment owner and senior(s) manager
- None of the company’s directors or partners authorized to manage the company shall be the subject of a previous case of bankruptcy or breach of honor or trust
- Appropriate course certification or degree in real estate from educational institutions accredited by Dubai Land Department
- Passing the brokerage profession test
Passing individual registrations and sole-owners, the required documents are:
- Two passport size photographs
- A copy of the passport
- A copy of the residence visa
- A copy of an Emirati-issued labor card (profession must be identical to that of visa)
- The application must be on the approved form and signed by the company sponsor
If the application is accepted, the broker must use his broker registration number in all correspondence and reports issued by him. Special conditions apply to real estate broker agencies who want to hire a broker outside of Dubai. The required documents for such “special permit” are as follow:
- The developer’s broker registration certificate
- The “external” agent’s official license from the abroad government and attested in the UAE in the accepted format
- A certificate of membership at the Chamber of Commerce and Industry
- A copy of the agreement between developer and agent
- The Dubai-registered broker agency (the employer) must take liability for all of the developer’s errors, omissions and mistakes.
Since last June (2014), RERA has introduced a new test for brokers.
“Real-estate brokers are the most high-profile representatives of the sector and the department expects them to be fully cognisant of their rights and duties in order for them to effectively serve their customers,” according to a statement by Rera.
The broker must sit for the RERA-issued test at least one month before the expiration of their license registration. Companies who did not made a transaction since a period of 6 to 12 months will have their broker license canceled.
How to obtain a real estate broker license in Dubai
To get one, you must provide adequate documentation and pass a new test. Follow these steps to obtain your real estate broker's license in Dubai.