Guide to Buying a Commercial Property in Dubai

Would you like to start an investment activity in Dubai? Are you thinking of a successful real estate investment? We put in your hands an ultimate guide to commercial property in Dubai.

Guide to Buying a Commercial Property in Dubai
4,321
2023-04-26

Types of Commercial Properties in Dubai

Dubai is one of the world's major economic hubs. Investors are eager to encourage new, imaginative ideas, and entrepreneurs and startup developers find fertile ground here for development.

Commercial real estate is one instrument that supports enterprises and entrepreneurs in developing their operations and contributes to the welcoming business climate in Dubai.

This article discusses the commercial real estate market in Dubai, the kinds of commercial properties it provides, and the costs of the possibilities that are offered for sale to foreigners.

Offices

Both fully equipped and unfurnished offices are available for sale and rent in Dubai. Their price varies according to the location, the size of the property, and whether or not it is equipped.

Business Bay, Jumeirah Lake Towers, and Sheikh Zayed Road are the greatest places to purchase offices.

A business area of up to 35 m² typically costs AED 250,000. (USD 68,063).

Coworking Workplaces

Because they require little startup money and have cheaper rent than other properties, cosy co-working spaces with a laid-back vibe and a welcoming corporate environment are a perfect choice for investors in commercial real estate.

In Dubai, you may either start your own co-working space from scratch or acquire an existing franchise or location.

Shops

Retail properties and stores are common investment choices in every neighbourhood and residential region in Dubai. You have the option to purchase a new or secondhand property. The first choice is the most economical since, in general, alternatives that are still being built cost less than options that are already complete. The most well-known business areas of the city, such as Business Bay, Downtown Dubai, and Dubai Marina, are good places to look for possibilities.

Here, properties ranging in size from 32 square meters to 925 square meters and larger are offered for sale. Their starting price is AED 150,000. (USD 40,838).

From 9.2 m² to 3,500 m² in size, rental costs range from AED 15,000 (USD 4,083) to AED 4 million (USD 1,089,017).

Shops

Warehouses

Another well-liked category of commercial real estate is warehouses. They are useful for both simple industrial procedures as well as for storing items. There is a sizable amount of warehouse space in Dubai that is available for rent or purchase.

For premises of between 118 and 36.7 thousand m², the price of a warehouse in the emirate ranges from 1 million AED ($272,254) to 73 million AED ($19,874,572).

As of May 2022, the annual minimum rent for a warehouse in Dubai is AED 22,800 ($6,207).

Showrooms

Showrooms are the best places to display your items. And we're not just talking about clothes and accessories here; we're also talking about home electronics, the newest gadgets, and even heavy machinery. The size of exhibition halls ranges from 340 to 4,500 m², allowing business owners to customize them to their needs.

The majority of showrooms in free economic zones cater to corporate clients that seek to build stronger relationships with end users.

In the regions of Business Bay, Al Barsha, and Ras Al Khor, you may find interesting offerings.

The starting purchase price is 9 million AED ($2,450,289).

The annual rent is 100,000 AED ($27,225).

Villas

Commercial villas can be utilized as a workplace, store, dining establishment, private clinic, or kindergarten, among other things. The arrangement of these houses makes them incredibly practical. Typically, they feature 3 to 7 bedrooms, bathrooms with all the necessary amenities, parking, and cosy living spaces.

Mohammed Bin Rashid City, Umm Suqeim, Jumeirah, and Deira are the most desirable locations to purchase commercial villas.

In certain regions, a villa may be purchased for as little as 2.1 million AED (571,734 dollars). The annual starting rent is AED 200,000 ($54,450).

Villas

Buildings

You may buy a full building if you're interested in something bigger, like starting your hotel or fitness facility. The following locations have a large number of buildings for sale and rent: Al Barsha, Deira, Dubai Production City, and Dubai Hills.

Property in these locations may be purchased for as little as 3 million AED (816,763 dollars). The minimum rent is AED 220,000 ($59,895) annually.

Land Plots

Failed to locate a viable choice from those offered? Then, you may purchase a piece of land and launch your venture. Investors in Dubai have a choice between two land types:

  • Land for industrial use: Excellent for the building of commercial facilities.
  • Land for mixed-use: Suitable for the construction of residential units.

For the first choice, Business Bay, Jumeirah Village Circle, and Al Jadaf are the ideal locations. Al Warsan and Jebel Ali are good for the second.

A piece of land must cost at least AED 1 million ($272,254). The use of a piece of land determines its value. The annual rent begins at 60,000 AED ($16,335).

Factories

The growth of manufacturing is one of the key components of Dubai's economic plan. The state offers investors tax, customs, and other perks since it wants them to invest in the growth of this sector.

Al Qusais, Dubai Investments Park, and Dubai International Park are where the majority of the emirate's businesses are situated.

In Dubai, a factory may be purchased for as little as AED 800,000 ($217,803).

A production facility may be rented for 1.25 million AED ($340,318/year).

Is Commercial Property a Good Investment in Dubai?

For reliable profits over the long term, real estate has always been seen as a secure investment. The market that one chooses to invest in, nevertheless, is a key choice to make to guarantee the best outcomes. With continuously high returns on investments in its steady real estate market, Dubai has shown to be a great alternative over the years.

Dubai, a vibrant metropolis, has developed into a centre for a variety of economic prospects. The market offers a significant amount of flexibility for investors, from small-scale to mid or upper-level investors. There are many options for people interested in commercial real estate in this area because it aims to promote a wide range of activities, from retail and entertainment to childcare and education.

Best Areas to Buy a Commercial Property in Dubai

  1. Business Bay

Business Bay is surrounded by magnificent skyscrapers and nonstop entertainment. It is a residential, commercial, and business district in Dubai. You may engage in a variety of activities taking place on the busy city streets if you live here. It provides breathtaking views of Dubai Creek and the city's skyline. One of the best reasons to acquire a house here is the Dubai Canal's sparkling waters and the short commute to other places.

  1. Jumeirah Lake Towers

Jumeirah Lake Towers is a well-liked mixed-use complex in Dubai. It is a project by the Dubai Multi Commodities Centre that is centred on four artificial lakes and a park area. It offers many conveniences and a welcoming feeling of community. As a result, Jumeirah Lake Towers has developed into the ideal residential area for anyone looking to live close to the bustling Dubai Marina.

Like Business Bay, Jumeirah Lake Towers offers a variety of business buildings for sale. The area is highly sought-after in the emirate's retail real estate market because it is a free zone.

Entrepreneurs also benefit from the ease of conducting business with other companies while being in a significant metropolitan area in the city. This neighbourhood benefits from a metro station and several banks, which contributes to its independence.

One of the best selections of commercial real estate in Dubai is offered by Jumeirah Lake Towers. It consists of shops, commercial floors, and offices. The ease of access to residential complexes in Jumeirah Lake Towers adds to the allure of purchasing commercial real estate in this area.

Jumeirah Lake Towers

  1. Al Quoz

Al Quoz is another favoured location to purchase real estate in Dubai. It is a sprawling mixed-use neighbourhood in western Dubai. It's surrounded by several settlements. Al Wasl neighbourhood may be found in the north. In the west are Al Safa, Umm Al Shief, and Al Manara. These areas form a long rectangle with Al Khail Road and Sheikh Zayed Road.

Residential and commercial properties are expertly separated in Al Quoz. Al Quoz 1, Al Quoz 2, and Al Quoz 4 make up its northeastern section, which is where the residential sector is located. These residential regions are home to several Emirati households. In contrast, the business sector has made a stronghold of the neighbourhood's southwest.

Al Quoz Industrial Area's developed four sub-communities by the Dubai Municipality. These sub-communities provide sufficient housing for construction projects and numerous Dubai hotels.

As a result, company owners may readily purchase or lease commercial real estate at affordable rates. Offices, work camps, bulk storage facilities, factories, warehouses, retail spaces, industrial sites, and showrooms are some of these property kinds.

  1. Jebel Ali

Jebel Ali, once classified as a satellite district and sometimes called Mina Jebel Ali, is a continuously growing neighbourhood that is slowly rising to prominence. It is a mixed-use complex that includes elements for business, industry, retail, leisure, and housing.

The Jebel Ali Port, the largest man-made port in the world, Palm Jebel Ali, JAFZA (a designated industrial zone), and Jebel Ali Village are the most significant landmarks.

Because it is primarily a sizable commercial port and business district located near Dubai Marina, the neighbourhood is also essential to the emirate's industrial activity. Additionally, it is home to the ninth busiest port in the world and the largest marine port in the Middle East.

The expansion of the Jebel Ali Free Zone accounts for about 23% of Dubai's GDP. About 7,000 companies working in manufacturing, commerce, logistics, and a range of other industrial and service sectors are based in JAFZA.

Therefore, investing in commercial properties in Jebel Ali is a smart move if you run a successful firm in manufacturing, logistics, or trade.

  1. Deira

It is Dubai's oldest business area. It is bounded by Sharjah, Dubai Creek, and the Arabian Gulf. This important commercial hub is well-known to tourists for its glistening Gold Souk. As a result, it is among the most favoured places in the emirate to live and work.

Small lanes here are dotted with the city's famed spice and gold souks. It will be filled with things taken from Dubai Creek's waterways. For many years, traders brought perfume, spices, coffee, and gold from far-off regions and anchored their ships along its banks.

Thus, investing in commercial buildings in Deira is your best choice if you want to launch a new trade or logistics company!

Can Foreigners Buy Commercial Property in Dubai?

In Dubai, foreign ownership is permitted in areas designated as freehold. Foreigners (who don’t live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.

Article 3 of Regulation No. 3 of 2006 Determining Areas for Ownership by Non-Nationals of Real Property in the Emirate of Dubai (pages 129-132) indicates the land plots designated as freehold properties.

The title deeds are issued by the Land Department in the emirate. There is no age limit to own property in Dubai.

Can Foreigners Buy Commercial Property in Dubai

Conditions for Buying a Commercial Property in Dubai for Foreigners

In Dubai, foreign investors are allowed to purchase commercial properties, such as office buildings and retail spaces, under certain conditions. Here are some of the key considerations for foreign investors looking to buy a commercial property in Dubai:

Freehold ownership: Foreign investors can buy commercial properties on a freehold basis, which means they have the right to own the property in perpetuity. However, certain restrictions may apply depending on the location of the property.

Pre-approval: Foreign investors must obtain pre-approval from the Dubai Land Department (DLD) before purchasing a commercial property in Dubai. This process involves submitting various documents, including proof of identity, proof of income, and proof of financial capability.

Financing: Foreign investors can finance their commercial property purchase through a mortgage from a local bank. However, the maximum loan-to-value ratio (LTV) that banks are allowed to offer is generally lower for commercial properties compared to residential properties.

Business setup: Foreign investors must also consider the process of setting up a business in Dubai, which may involve obtaining various licenses and approvals from the relevant authorities.

It's important to note that these are general guidelines and that specific requirements may vary depending on the specific property and the investor's circumstances.

Costs of Buying Commercial Property

The breakdown of the initial expenditures business owners might anticipate when purchasing commercial properties in Dubai is as follows:

  • Value of the property
  • The Dubai Land Department will get 4% of the transfer fees (DLD)
  • The Value Added Tax of 5% (VAT)
  • The trustee registration price, which is AED 4,200, is increased by 5% VAT.
  • The real estate agency's brokerage fees

Imtilak Global Offers and Services

Imtilak Global, the leading real estate company in Dubai, offers full services to investors wishing to invest in the emirate's real estate market.

Imtilak Global works to give the best real estate opportunities available in the real estate market in Dubai to its distinguished customers, and the company undertakes post-purchase services from the procedures for obtaining the title deed, residence and various other services.

Imtilak Global is based on its extensive experience in the international and local real estate market, as it is a regional company that owns several offices in different countries working in many investment fields, the most important of which are real estate markets.

Edited by Imtilak Global  ©

Do you like this topic? You can share it with your friends now.

More from Imtilak
Wasl Properties Company Profile

Since its inception, Wasl Properties has developed several residential and commercial projects in Dubai. This article is...

2023-10-03
1,535
Deyaar Development Company Profile

Deyaar is one of the strongest real estate development companies, as it operates in several countries, and the company i...

2023-09-19
1,850
Omniyat Real Estate Development Company Profile

Omniyat is classified as one of the best real estate development companies in Dubai, as it has developed several importa...

2023-09-19
1,868
contact contact

Talk to us on your favorite channel

What are you looking for in a property?

back

Channels

Thank you!

close

Your message has been successfully sent. We will contact you very soon!