Real Estate Business in UAE
Dubai real estate transactions crossed AED 760 billion in 2024, and the momentum has carried through 2025-2026. The city now hosts more than 25,000 active brokers across roughly 3,500 registered brokerage firms. Property prices in prime areas like Palm Jumeirah, Downtown, and Business Bay have grown 40-60% since 2021. Abu Dhabi and Sharjah markets have followed with their own surges. For anyone entering the sector as a broker, agency, or property manager, the UAE rewards scale and compliance in equal measure. But the licensing rules are strict. RERA registration, DLD permits, escrow compliance, and rules around off-plan vs secondary sales are not optional. Getting any of these wrong can cost you your license and your clients.
Common Setup Structure
- Mainland Real Estate Brokerage License from DET (Dubai Economy) or equivalent emirate authority
- RERA registration mandatory for every individual broker and brokerage firm in Dubai
- Property Management License is separate from Brokerage License; both required if you do both
- Holiday Home operators need DTCM permit in Dubai and equivalent in other emirates
- Real estate developers require Escrow account approval from DLD and RERA project registration
- Free Zone real estate companies cannot operate in Dubai mainland market without local partner
Licensing Considerations
- RERA Brokerage License from Dubai Land Department, valid 1 year, renewable
- Individual RERA card for every broker; requires certified training and exam
- Mainland brokerage needs a physical office in a DED-approved location, minimum 10 sqm
- Off-plan sales require DLD project registration and Escrow account for developer
- Property valuations require RICS or Taqyeem certification
- Foreign brokers can work in UAE but require a UAE-registered brokerage and RERA card
Accounting Requirements
- Commission-based revenue recognition, typically 2% buyer-side and 2% seller-side
- Escrow account management for developers; strict DLD rules on fund segregation
- Deferred commission tracking when payment is linked to title deed transfer completion
- Property portfolio accounting for investment clients, including rental income and service charges
- VAT accounting on commercial property commissions vs zero-rated residential commissions
- Golden Visa documentation support for AED 2 million+ property investors
Tax Obligations
- VAT at 5% on commercial property sales and rentals
- Residential property sales and leases are VAT-exempt (not zero-rated)
- Brokerage commissions on residential transactions are VAT-exempt
- Brokerage commissions on commercial transactions attract 5% VAT
- Corporate Tax at 9% on brokerage profit above AED 375,000
- No VAT on off-plan residential purchases, but VAT applies on certain developer fees
Common Mistakes to Avoid
Real Estate FAQ
Common Questions
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