How to Purchase Commercial Property in Dubai

Thinking about purchasing a commercial property in Dubai? That’s an exciting step! Dubai is a global business hub with endless opportunities if you’re looking for office space, a shop, or a warehouse. But let’s be honest—understanding the property market in Dubai can feel a bit overwhelming, especially if it’s your first time.

Don’t worry—we’ve got you covered! This guide will provide simple tips and insights to make the property-buying process smooth and stress-free. Let’s get started!

Types of Commercial Properties in Dubai

Dubai isn’t just about stunning skyscrapers and luxurious hotels—it’s a city buzzing with the commercial real estate market. So, if you plan to set up an office, a retail space, or something unique for your business, Dubai’s got you covered. Let’s understand the different types of commercial properties in Dubai for sale!

1. Offices

One of Dubai's most in-demand commercial properties is the Office space, and it’s no surprise why! 

If you’re looking for a fully furnished space or a blank canvas to design as you wish, you’ll find plenty of Office options. Of course, prices vary depending on location, size, and whether the office is furnished. If you’re wondering about the best locations for offices, here are a few top picks:

• Business Bay is Dubai's business district, which has modern office buildings and great connectivity.
• Jumeirah Lake Towers (JLT) is a vibrant community perfect for smaller businesses or startups.
• Known for its prime office buildings, Sheikh Zayed Road is ideal for larger corporations and companies wanting to be in the city's heart.

So, do the research and take your time to explore these prime locations—you’re sure to find an office space that fits your business perfectly!

2. Retail Spaces

Retail spaces are in high demand in Dubai, a shopper’s paradise with an ever-growing tourism sector. So, if you plan to start a boutique or open a larger store, retail properties come in various sizes and locations. Take your time to explore and choose a space that’s just right for your business vision!

3. Warehouses & Industrial Spaces

Warehouses and industrial properties are essential for logistics, manufacturing, or storage businesses. If you’re looking for warehouse spaces, you can find them near major transport hubs like Jebel Ali Port, Al Quoz, and Dubai Industrial City. These hubs are ideal for businesses that need easy access to global shipping routes. 

4. Mixed-Use Developments

Mixed-use properties, which combine commercial, residential, and leisure spaces in one place, are gaining much attention in Dubai. So, if you want to invest in something that blends lifestyle with business opportunities, it’s perfect to invest in mixed-use developments. 

Overall, Dubai’s government ensures transparency in real estate transactions through the Dubai Land Department (DLD) and its Real Estate Regulatory Agency (RERA). If you’re planning to buy property in Dubai, it’s essential to understand the legal framework. As an expat, you can enjoy full ownership in designated freehold areas or opt for leasehold properties with long-term lease agreements of up to 99 years. This system gives you flexibility, depending on your needs and goals.

Steps to Buying Commercial Property in Dubai

Now that you know the types of commercial property in Dubai and the difference between freehold and leasehold properties, let’s check out the step-by-step process of buying commercial property in Dubai.

Step 1. Define Your Investment Goals

Ask yourself: Are you buying commercial property in Dubai to run your business, or is it purely for investment? Knowing your purpose up front makes all the difference. Popular options range from office space for sale in Dubai and retail shops to warehouses. 

Step 2. Set a Budget

Commercial properties in Dubai come with a wide price range, so figure out your financial capacity for the property itself and extras like maintenance fees, registration costs, and agent commissions. 

Step 3. Choose the Right Location

As you know, location is everything in Dubai Real Estate. Areas like Business Bay, Jumeirah Lake Towers (JLT), and Dubai Marina are hot spots for commercial properties. So, think about convenience and choose the correct location. A little research must be done to find a space that works for you.

Step 4. Partner with a Trusted Real Estate Agent

Dubai’s real estate market can sometimes be overwhelming, so having a trusted agent by your side is a game-changer. A good agent knows the ins and outs of the real estate market and regulations and can guide you to properties that match your goals. 

Step 5. Verify the Property Details

Double-check everything! You should ensure the property is legally sound and in clear ownership. Dubai Land Department (DLD) offers online tools to verify title deeds and property registrations.

Step 6. Secure Financing

The good news? Expats and Foreign investors can access mortgages in Dubai. Many banks offer competitive rates, so explore your options. If you’re unsure, talk to a financial advisor who can help you find the best plan.

Step 7. Sign the Sales Agreement

Once you find “the perfect space,” it’s time to seal the deal! Negotiate the terms and sign a Memorandum of Understanding (MoU). Ensure every detail—like payment timelines and conditions—is clearly outlined in the agreement.

8. Register the Property

The final step! To make it official, register the property with the DLD. You must pay the transfer fee (usually 4% of the property’s value) to complete the process. And just like that, you’re a proud owner of a commercial property in Dubai!

Tips for First-Time Commercial Property Buyers

Now that you’re familiar with steps to buy commercial property in Dubai, here are some tips if you’re a first-time property buyer:

• Do Your Research: The Dubai real estate market is diverse, and you want to ensure you're making a well-informed decision. So, try working with a local agent who understands the market's ins and outs.
• Consider Your Business Needs If you're looking for an office, retail, or industrial space. Is the location convenient for your target customers? Does the size suit your plans?
• Location: The right location can make or break your business. Look for areas with high foot traffic, accessibility, and good infrastructure.

Buying commercial property in Dubai might seem like a big task, but it can be one of your best decisions. When you purchase a commercial property in Dubai, you enter a strong economy, access diverse property options, and get long-term appreciation. The potential for high returns is a great bonus if renting out the property. So, understand UAE laws and choose a location that matches your business needs and expectations. It’s all about making a wise choice for your future!

FAQs

1. Can we buy commercial property in Dubai? 

Yes, foreigners can buy commercial property in Dubai, particularly in free zones where they can own 100% of the property. In mainland areas, foreigners can own businesses outright without needing a local sponsor​.

2. What is the DLD fee for commercial property? 

The Dubai Land Department (DLD) fee for commercial property is typically 4% of the property's sale price, split equally between the buyer and the seller​.

3. What is the return of commercial property in Dubai? 

Commercial properties in Dubai offer a strong return on investment (ROI), with rental yields often exceeding 7%, especially in high-demand areas like Business Bay and DIFC​.

4. How to buy off-plan property in Dubai? 

To buy off-plan property in Dubai, you need to work with a licensed developer, ensure the project is registered with the Real Estate Regulatory Agency (RERA), and make a deposit as part of the payment plan.