Sharjah offers a high-yielding ground for real estate ventures. Due to its expanding property sector, the city offers a lucrative opportunity in one of the UAE’s fastest-growing markets. These factors draw in many entrepreneurs who wish to be a part of the dynamic industry. They aim to set up a real estate agency in Sharjah and help their clients find their dream homes and properties.
However, starting a real estate business in Sharjah encompasses several steps and knowledge of the property industry. To cater to this, we have outlined all the essentials to help you set up a real estate agency in Sharjah. But first, we’ll learn the benefits of such businesses.
Benefits of Starting a Real Estate Business in Sharjah
Setting up a real estate agency in the UAE encompasses several steps – it also offers many benefits. Let’s go through the important ones in detail.
Thriving Residential Market
Sharjah is known for its affordability compared to other emirates. It attracts many residents and ensures a consistent demand for sales and rental properties in Sharjah. Additionally, steady demand for rental properties is driven by a growing population and influx of businesses. It offers reliable returns for investors and attracts clients to your agency.
Government Incentives
Favourable tax policies and simplified property transaction procedures by the Sharjah government encourage investment. Moreover, they help create a business-friendly environment.
Open Market
Sharjah allows full foreign ownership of freehold properties in designated areas. They provide a broader market reach when you setup a real estate agency in Sharjah.
Business Setup Advantages
The emirate offers a streamlined business setup process with minimal capital requirements. Moreover, free zones and mainland areas of Sharjah provide additional benefits for certain business structures such as tax exemption.
Crucial Steps Involved in Starting a Real Estate Business in Sharjah
Several factors come into play when you setup a real estate agency in Sharjah. From getting a licence to searching for an office space, the process can get quickly overwhelming if you are aware.
Here is a walkthrough of how to setup a real estate agency in Sharjah.
Market Research and Business Plan
First things first, conduct thorough market research and familiarise yourself with the real estate glossary. This will help you understand current trends, demand and competition in the Sharjah real estate market. To do so, develop a comprehensive business plan.
It must outline the business model, target market, financial projections and growth plans. Besides, look into the benefits of hiring a real estate agent so your marketing strategies align with the primary goals.
Choose a Legal Structure
The next step is to select a legal structure. Decide on the legal structure for your business from the following options:
- Proprietorship
- Business Partnership
- Limited liability company (LLC)
- Free Zone Establishment
- Civil Company
Trade Name Registration
After you have chosen a legal structure, select a unique trade name that complies with UAE naming conventions. After that, register the trade name with the Sharjah Economic Development Department (SEDD).
New investors can also apply for the trade name via Tasheel’s service centres. Also, the fee for issuing a trade name is AED 250.
Obtain a Real Estate Licence
The next step is to get a Sharjah real estate licence. However, you must prepare a memorandum of association and local service agent agreement and get approval from government entities (local and federal). After obtaining the necessary approvals, the investor should visit the SEDD headquarters.
Moreover, they must fulfil all the legal requirements and pay the required fees to issue and obtain the licence. Be mindful of real estate licencing requirements in Sharjah such as residency permits, business plans and proof of trade name registration.
The licence issuance date is based on the payment voucher issuance date. Licence fees must be paid within 15 days of the payment voucher issuance. The transaction will be automatically cancelled if the fees are not paid within six months.
Once you have acquired the licence, complete a certified real estate training course. They are similar to real estate agent courses in Dubai, highlighting all the key points. Once the learning is completed, pass the real estate licencing exam to practice your profession legally.
Office Setup
Before you finalise an office space for your agency, ensure that it meets the SEDD specifications. For this process, the required documents include a trade name request, site map and title deed. The fee for this service is AED 150.
Once done, furnish the office with essential equipment like desks, chairs, computers and internet access. Go through these options to rent an office space in Sharjah if you are unsure about deciding a location.
Hire Qualified Staff
After you have setup a real estate agency in Sharjah, it’s time to bring in the workforce.
Employ qualified candidates who are aware of what real estate agents must know about property. They should also hold a valid real estate licence in the UAE.
Marketing and Networking
You should develop a marketing strategy that includes digital marketing, social media, real estate portals and traditional advertising. Also, create a professional website showcasing services, listings and contact information. Marketing and networking will help you build relationships with other real estate professionals, investors and property developers in Sharjah.
Additionally, another basic tip for being a real estate agent is to use a real estate CRM system to manage client interactions, listings and transactions. You can implement property management software to streamline operations and track rental income and expenses.
FAQs
Can the owner increase rent in Sharjah?
Property owners in Sharjah can increase the rent only after three years from the signing date of the tenancy contract.
Can expats buy property in Sharjah?
Yes, there are many areas for foreigners to buy a property in Sharjah such as Al Khan, Sharjah Sustainable City and Al Majaz.
Is it worth it to buy property in Sharjah?
Investing in Sharjah’s real estate comes with a host of benefits such as high rental yield and low property taxes.
That is all about the importance and steps to setup a real estate agency in Sharjah. For that, you must ensure compliance with all local, state and federal regulations. You must also have a sound knowledge of the Sharjah tenancy rules.
In addition, if you want to open a real estate company in Sharjah, consider these commercial buildings for sale in Sharjah. You can opt for these options to set up your next workplace.
To learn more about setting up real estate businesses across the UAE, keep reading dubizzle’s property blog.
