How to get RERA approval for a real estate business in Dubai
Against a backdrop of global instability, Dubai’s property market continues to go from strength to strength. The total transactions in Q3 2023 reached AED 95.55 billion, a remarkable 40% increase on the same period the previous year, and as other major markets falter, Dubai’s consistent growth and strong market dynamics provide a lucrative platform for launching and growing a successful real estate business.
If you’re considering tapping into this thriving market, securing approval from the Real Estate Regulatory Agency (RERA) is crucial, but what is RERA and what role does it play in licensing real estate businesses?
An overview of RERA
The Real Estate Regulatory Agency (RERA), a key arm of Dubai’s Land Department, plays a pivotal role in overseeing and regulating the emirate’s real estate sector. Established to bring transparency and regulatory oversight, RERA’s primary objective is to foster an environment of trust and fairness in real estate transactions.
RERA oversees a wide range of businesses within the real estate domain, including property developers, real estate brokers, and property management companies. Its responsibilities encompass licensing these entities, ensuring adherence to ethical practices, and implementing legal standards for real estate activities. RERA also plays a crucial role in dispute resolution between parties involved in real estate transactions, thereby maintaining the sector’s integrity and protecting the interests of all stakeholders, from investors to end-users.
Eligibility requirements for RERA approval
To secure RERA (Real Estate Regulatory Agency) approval in Dubai, there are specific eligibility criteria that must be met. For individual real estate brokers or agents, a primary requirement is the completion of the RERA-certified Real Estate Brokers Course, followed by passing the RERA certification exam. This exam, often referred to as the Broker’s Exam, tests knowledge of Dubai’s real estate laws and market regulations.
For companies, a key eligibility criterion is the demonstration of sound financial stability. While specific monetary thresholds can vary, companies typically need to show evidence of sufficient capital to sustain their operations, either in the form of bank statements or financial guarantees.
Furthermore, individuals and company representatives must have a clean criminal record. For companies, the appointed management team or directors should have proven experience in the real estate sector, ensuring they can competently navigate the industry’s challenges.
Detailed business plans are also required, clearly outlining the scope and nature of proposed real estate activities. These plans are scrutinised to ensure they align with Dubai’s legal and market standards.
RERA training requirements
For real estate professionals aiming to operate in Dubai, completing RERA training and certification is a mandatory requirement. This process involves enrolling in the RERA-approved Certified Training for Real Estate Brokers, offered by the Dubai Real Estate Institute (DREI).
- Enrollment in DREI training: The DREI training is a comprehensive 4-day course designed to equip potential realtors with thorough knowledge of Dubai’s real estate market, its laws, and practices. To enroll, candidates must submit a copy of their Emirates ID and residency visa. The course fee is AED 3000, and enrollment can be done directly through DREI.
- Course format: The course is flexible, with options to attend classes online or in person at the Dubai Land Department, catering to different learning preferences and schedules.
- Course curriculum: The DREI course covers a wide range of topics essential for a successful career in real estate. These include the history and development of Dubai’s property market, the role and business of a broker, introduction to owners’ associations, details about sales and leasing processes, legal aspects, essential skills for real estate professionals, and an in-depth look at the code of ethics in the industry.
- Certification and exam: Upon completion of the training, participants are required to take the RERA exam. Passing this exam is crucial for obtaining the certification that validates a professional’s readiness and compliance to work within Dubai’s real estate sector.
The application process
The application process for obtaining RERA approval in Dubai is methodical and requires adherence to specific steps and documentation:
- Preparation and documentation: The first step involves gathering all necessary documents. This includes personal identification documents (like passports for individuals or commercial licences for companies), proof of completion of the RERA-certified Real Estate Brokers Course and passing the Broker’s Exam for individuals, company financial statements, and a detailed business plan outlining the real estate activities to be undertaken.
- Initial application submission: Applicants must submit these documents along with the initial application form to RERA. The form is available on the Dubai Land Department’s website or at their office.
- Payment of fees: Upon submission, an application fee must be paid. The fee varies depending on the type of licence and the nature of the real estate activities. Applicants should confirm the current fee structure with RERA or through the Dubai Land Department’s website.
- Review process: After submission, RERA reviews the application. This process includes verification of documents and background checks, especially for financial stability and criminal records.
- Training and certification (for individuals): If not already completed, individual applicants will need to undergo the mandatory RERA training course and pass the certification exam.
- Approval and licence issuance: Once the review is successfully completed and all criteria are met, RERA issues an approval. Following this, the applicant can collect their RERA licence, which permits them to legally operate a real estate business in Dubai.
- Post-approval registrations: After receiving RERA approval, businesses may need to complete additional registrations, such as with the Dubai Chamber of Commerce and Industry.
How can Global Link help?
Global Link has over 16 years’ experience working with local and global businesses, providing bespoke consultancy services for company incorporation and financial services in Dubai and the wider UAE.
We can offer invaluable assistance in helping you obtain RERA (Real Estate Regulatory Agency) approval and start your real estate business in Dubai. We can help prepare and organise the necessary documentation including business plans, financial records, and legal documents, guide you through the process of enrolling in the required RERA training courses and manage the submission of your RERA application, handling the administrative tasks and ensuring that all paperwork is correctly completed and submitted on time.
If you need advice on this or any other company incorporation, visa or PRO service, please get in touch with us on +971 4 553 9901 or email us at [email protected] and we will be happy to assist you.