Compared to other successful global markets such as New York, Paris, and London, Dubai is known for having the highest rental yields ranging from 7 to 10%.
Dubai – a global hub for both trade and commerce, attracts entrepreneurs and businesses from all over the world. What’s more impressive investors don’t have to pay income tax on their rental yields.
Whether you are a real estate investor or looking to start a commercial business in Dubai, here is a detailed guide on different types of commercial properties in Dubai and the average rental or purchase prices you can expect to pay.
7 Different Types of Commercial Properties in Dubai
Before getting you acquainted with Dubai commercial real estate, let’s get to know how real estate works in Dubai.
Categorically, real estate in Dubai is divided into two major parts—residential and commercial. Residential real estate in Dubai generally includes apartments, studios, villas, condominiums, etc.
Dubai is one of the premier entrepôts of the Middle East. There isn’t anything that you can’t find here, from purpose-built factories to offices, to general-use factories, etc.
It has the best property market an investor could ever find, especially if you are seeking to invest in commercial real estate or start a new venture. Also, the real estate sector in Dubai contributes 8.2% of the GDP.
The following are different types of commercial properties in Dubai.
1- Co-working Workplaces
Cozy co-working workplaces with a friendly corporate environment and laid-back vibes are gaining popularity in Dubai since they have both flexibility and minimum capital requirements.
They are the perfect choice for new business start-ups and entrepreneurs. Also, such commercial properties give you the freedom to design the space as a collective office, or you can acquire an already existing franchise.
Nook, Our Space, WeWork, Nest, etc., are some of the few prominent co-working spaces in Dubai.
2- Offices
Offices are available for both rent and sale in the emirates. You can find both unequipped and furnished offices; the price of these properties solely depends on the size of the property, location, etc.
What’s more, you can find small units as well as large units depending upon the need of your business. The sizes vary from as small as 216 square feet to as huge as 45,000 square feet.
Nonetheless, Sheikh Zayed Road, Business Bay, Bur Dubai, and Jumeirah Lake Towers are among the top areas to rent a place in Dubai.
3- Retail Spaces
The city of possibilities has retail spaces of all sizes and kinds that cater to almost every business need. It has an extensive range of such properties available for purchase and rent.
Shops
If you are seeking profitable investment in the emirate, Shops make a great choice as they are in demand in almost every community or area of the city.
At present, you can find such places in almost every commercial district of the city, from Business Bay to DIFC to Sheikh Zayed Road to Dubai Marina, etc.
The cost of buying or renting such properties depends on the size and location. However, you can rent a commercial shop in Dubai for as low as AED 10,000/month or can buy a shop in the top areas of Dubai for AED 245,000 or more.
Warehouses
Another well-liked and profitable category of commercial real estate in Dubai is acquiring a warehouse. So if you are aiming for commercial storage, a place for manufacturing, or an investment that provides high rental yield, investing in the warehouse is a great option.
You can look for such a property in Al Qusais, Al Quoz, or Ras Al Khor, and you will find the best places the city has to offer.
The minimum rental amount you will have to pay for a warehouse is AED 5,500, or you can buy the property for AED 1 million, which goes all the way to AED 73 million.
Showrooms
Are you in need of rental showrooms to display your gadgets or building materials, or are you looking at the bigger picture to invest in something that produces a good return on investment? Don’t worry! Dubai has a host of showrooms to offer that fit your business needs.
You will usually find purpose-built showrooms that come in various sizes; the city has a lot to offer. To purchase a commercial property that can serve as a showroom, Al Barsha, Al Quoz, and Ras Al Khor are some of the best areas to check out.
You can rent a commercial showroom in Dubai starting from AED 125,000, which may go up to AED 5.5 million, depending on the size of the property. Also, you can purchase the showroom starting from AED 9 million.
4- Commercial Units
Are you operating as an independent small business such as a health spa or gym? Look no further, as commercial units can be your go-to thing.
Commercial Villas
Commercial villas are single-unit compounds that are, in turn, a part of big complexes. They can function as both offices or even host other business activities such as retail shops.
Al Wasi, Jumeirah, and Al Safa are some of the best places where you can find commercial villas. However, the rental amount keeps fluctuating between AED 180,000 and AED 2 million.
Commercial Floors
Are you planning to locate your company next to other business giants? Getting a multi-purpose commercial floor can be a great idea. Such properties exist in business centers and commercial towers all over Dubai.
Also, you can renovate these properties that go with your business requirements. Dubai Internet City, Jumeirah Lake Tower, and Business Bay are a few best areas where you can find commercial floors. Commercial floor rental price starts from as low as AED 85,000.
5- Commercial Buildings and Land
Dubai showcases a broad range of commercial properties. Corporate businesses or investors can look for both freehold and non-freehold real estate.
Land
Mixed-use and industrial are the two types of commercial lands available in Dubai. The prime difference between the two? Industrial land can be solely used for commercial purposes, whereas you can use mixed-use land for residential, commercial, and other development purposes.
Whether you are seeking to invest so it can yield a high rental income in the long run or want to set up a business from scratch, Jebel Al Freezone, Al Quoz, and Al Warsan are a few places where you can find industrial land.
With that, tenants and investors can search for mixed-use land in Al Jadaf, Jumeirah Village Circle, etc.
You can buy mixed-use commercial land for about AED 2.7 million or more, and the annual rental income starts from AED 765,000.
To purchase industrial commercial land in Dubai, the minimum budget one must keep in mind should be at least AED 850,000.
Plots
Buying or renting a commercial plot in Dubai is similar to buying a residential plot in all aspects. These properties are multi-purpose land demarcations that you can use for both personal as well as commercial use.
A commercial plot in Dubai can cost investors around AED 1.3 million to AED 175 million. Also, the rental amount for commercial plots ranges from AED 85,000 to AED 4.5 million.
Buildings
Freehold commercial property should be your top priority if you are planning to get into the business boom of the city.
These are the complexes situated in the business hub of the city, ready to be remodeled into office buildings, hotels, etc.
Whether you are looking to rent or buy such a property, Deira and Dubai Investment Park have ample options to offer.
You can rent a commercial building in Dubai between AED 700,000 and AED 29 million or purchase one starting from AED 900,000.
6- Factories
Are you on the lookout for multi-purpose or general-use factories? Dubai Investment Park, Al Quasis, and Dubai Industrial Park have a wealth of commercial factories to offer.
These properties vary in size that depend on the manufacturing requirements of the businesses. However, these units can be anywhere from 4,000 square feet to over 130,000 square feet.
These factories are available for AED 150,000 and go as high as up to 34 million, and expect to pay anything over AED 600,000 as the rental amount per year.
7- Labor Camps
Labor camps not only have the potential to generate a high rental income but offers cost-efficient solutions to businesses seeking well-planned employee housing. Labor camps are one of the less-known types of commercial properties in Dubai, but they have massive potential for consistent real estate income.
Currently, there are numerous labor camps in Dubai. To name just a few, Jebel Ali, Muhaisnah, Al Quoz, and Dubai Investment Park are some of the places where you can find labor camps.
You can find such properties on both full facility as well as per room basis at every pricing point that goes from AED 3,300 all the way to AED 30 million; pick the one that caters to your business needs.
What’s more, you can even purchase one with prices ranging from AED 2.8 million to 110 million.
DISCLAIMER: THE PRICE OF THE COMMERCIAL PROPERTY MAY VARY AS THE DUBAI REAL ESTATE INDUSTRY KEEPS BOOMING.
Frequently Asked Questions
Q: Is Commercial Property a Good Investment in Dubai?
Dubai commercial real estate is indeed a very good investment as the city isn’t just home to growing businesses but is famous for being a tourist destination. This means it has a huge potential for rental income.
Q: What are the Main Types of Real Estate in Dubai?
Residential, industrial, commercial, and land are the four main categories that fall under the real estate sector.
Types of Commercial Properties in Dubai-Wrapping Up
Dubai has also implemented a robust legal framework that serves the interest of both investors and renters. Such actions include lowering registration fees and mortgage caps; boosting the reputation of the city as a solid and growing market.
With the booming real estate sector and top-notch amenities, it is a wise decision to invest in Dubai.
If you still have queries related to Dubai commercial real estate write us at Admin@orchidhomesrealestate.com