Real Estate in Dubai means sky scrapers and world-class infrastructure that attracts millions of tourists every year. Every year people travel to Dubai for tourism and are impressed and attracted to the various real estate marvels which are tourist spots. Many of these tourists and even residents target to invest in real estate in the country due to several reasons.
Real Estate invest is a long term investment, where an investor considers several factors before making a decision. In 2019, Dubai real estate attracted an investment of AED 80 billion approximately. This staggering figure shows the confidence the investors place in the real estate industry in Dubai.
Dubai has now been ranked one of the world’s best places to live according to a new study and currently so, if we look in to past years, since 2002 Dubai has become hub for property investment; especially since making it available to foreign investors.
Setting up a real estate company in Dubai, thus, makes sense considering the investor demand and confidence in the market. Let us look at what businesses one can set-up related to real estate in Dubai:
- Buying and selling of real estate
- Real Estate Registration Agent
- Real Estate Development
- Real estate brokerage
- Property Management
- Real Estate/Mortgage Consultancies
There are some more activities which are also related to real estate and can be formed, based on the business idea.
- Income Tax free income
Most countries in the world have their own TAX charges, whether it be income tax, corporation tax, etc. UAE currently does not have any income or corporation tax on the profits of a company. This is a major factor which attracts many businessmen to form a real estate company in Dubai.
- Minimal Value Added Tax ( VAT )
UAE introduced VAT from 2018 at 5%. This VAT rate is one of the lowest in the world; and it is a tax which is payable to the government and is usually levied to the end consumer.
- High standard of Living
Dubai is all about life style and when you have people around with different cultures and 200 and more different nationalities working together, a business has an almost global audience even within the country.
When we talk about safety, we highlight the below points:
Safety of residents and tourists
Dubai is a very safe city to visit and reside in. Violent crimes are very rare, if not non-existent. The city is regulated by strict laws and heavy monitoring to ensure the safety of all the people within the city. This attracts investors to not only invest in a property, but also reside here along with their loved ones.
Safety of a business
The Dubai Government is highly vibrant and supportive of expat entrepreneurs setting up companies in Dubai. The government has a history of implementing initiatives to help businesses flourish. This gives an entrepreneur confidence to open a business in a highly stable environment.
Safety of investment in real estate
The Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD) have very clear, concise and fair rules when it comes to real estate transactions in the city. The investment made into real estate is considered highly safe; the rules make sure that the investor is aware of the investment he/she is making and is not mis-informed.
- One of the best commutation
In Dubai commutation is super easy as one has many options to travel like Bus ,Tram , Metro or RTA taxi. Many people prefer to use public transportation in Dubai as it is highly organised, safe and reliable.
- Relatively High Rental return
The rental income for investors is relatively high in Dubai and it can range any where from 5% to even 10%. This is a very good number, and is one that encourages investors to buy property and rent it out.
- Growing population
As per record the growth rate of 6.5 per cent every year nearly entirely by expatriates and its more to add in it, as population is growing parallel to Dubai developing its infrastructure, new transportation modes, more entertainment centers, new residential and commercial properties to welcome people all around the world.
- Property Visa
From 2019, Dubai has also launched property visa option. So if you own property and fulfil the property visa requirements, which are fairly simple, an investor can also avail residence visa, due to investment made in real estate.
Overall, the economic market in Dubai has movement and traction; and real estate plays a major role in it.The demand of property is high in Dubai and as a Real estate business owner, one can grab the opportunity to grow in the industry.
This blog is written by Ms. Nikki, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. We are in the company formation industry from past 15 years and we have helped set-up several Real estate companies and we would love to assist you for your company formation.
If you have any queries regarding Setting up a business in Dubai for Real estate or any business feel free to contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.