Buying commercial property in Dubai can give a steady rental income, but the numbers need more care than a home. We look at the rental yield, the service charges and how easy the unit will be to lease before we recommend it.
Commercial Property We Help With
- Office units in Business Bay and other business districts
- Shops and retail units at street level
- Units already leased to a tenant, for income from day one
- Space for your own company, if you would rather own than rent
Questions To Ask Before Buying
Ask what the unit rents for today, how long it has been empty in the past and what the service charges are per square foot. We put these numbers side by side so you can compare units fairly.
Working Out The Real Yield
A quick way to compare units is the net yield. Take the yearly rent, subtract the yearly service charges, then divide by the total price including fees. A unit with a high rent but very high service charges can earn less than a cheaper unit in a well run building. We do this calculation for every unit on your shortlist.
Tax And Fees To Plan For
- The 4% Dubai Land Department transfer fee, as with homes.
- 5% VAT on the sale of commercial property in most cases, and on commercial rent you charge a tenant.
- The trustee office fee and agency fee.
Because VAT and company structures affect your return, speak to a tax adviser before you sign. We can introduce you to one.
We also check whether chiller and parking charges sit inside the service charge or are billed separately, because this changes the real yield.
Buying With A Tenant In Place
A unit that is already leased gives you income from day one. Ask for the tenancy contract, the payment history and the lease end date. A long lease with a strong tenant is worth more than a short one, even at the same rent.
Location And Access
For offices, tenants look for a short walk to the metro, enough parking and easy access from Sheikh Zayed Road or Al Khail Road. For shops, footfall matters most, so ground floor units facing a busy street or a residential community usually lease faster. Before you buy, we check who the likely tenants are and how long similar units in the building have taken to lease.
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Frequently Asked Questions
Is there VAT on commercial property in Dubai?
Yes. Sales and leases of commercial property are generally subject to 5% VAT, unlike most residential property. Ask your tax adviser how this affects you, especially if you are VAT registered.
Can a foreigner buy commercial property in Dubai?
Yes, in Dubai’s freehold areas foreign buyers can own offices and shops, either personally or through a company. Some buyers use a company for tax or licence reasons, so get advice before you decide how to hold the unit.
What rental yield should I expect?
Yields vary a lot by building, size and tenant. We work out the yield from the real rent and the real service charges for each unit, rather than quoting an area average.
Should I buy an office for my own company or rent one?
Owning fixes your cost and builds an asset, while renting keeps your money free and lets you move as the business grows. If you expect to stay in the same location for five years or more, buying is often worth comparing. We can show you both options side by side with real numbers.
Looking For Commercial Property?
Send us your budget and preferred area on WhatsApp. We reply the same day with options that fit.