FAQ's on Buying Commercial Property in Dubai

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Why invest in commercial property in Dubai?
Should I buy or rent commercial property in Dubai?
Which location is ideally suited for my business?
Is buying commercial property advantageous over residential property?
Can I buy anywhere in Dubai?
Can I get financing in the UAE?
Can a foreigner hold a freehold title in Dubai?
What additional facilities should I expect from my developer?
Do I need commercial space to apply for a trade license?
Will I be eligible for property, inheritance, and capital gains tax?
What are the opportunities for rental yield and capital growth?

Why invest in commercial property in Dubai?

Shortage of completed property in Dubai and the presence and development of numerous new businesses have resulted in demand outstripping supply. This reflects on the price, which tends to increase until supply eventually evens out.

Should I buy or rent commercial property in Dubai?

This really depends on the short and long-term objectives of your business. Renting a property gives the tenant the flexibility of expanding the size, moving locations, or even shutting shop without having exposure to the property market. On the other hand, purchasing a property protects the occupier from rent escalations, eviction notices, or other unreasonable landlord demands and allows scope for capital appreciation.

Which location is ideally suited for my business?

While offices tend to be focused in locations, such as, Sheikh Zayed Road, Business Bay, and Jumeirah Lake Towers, warehouses and labour camps have been centric towards industrial locations, such as, Al Quoz and Dubai Investment Park.

Is buying commercial property advantageous over residential property?

In a way yes, because commercial property investment is normally much less volatile as compared to residential property. A tenant of a commercial property will be required to stay in the premises for a longer period of time than one residing in a residential property.

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Can I buy anywhere in Dubai?

If you are a non-UAE national, you can only buy in areas designated specifically for expatriate freehold and leasehold sales.

Can I get financing in the UAE?

Yes, you can get finance for commercial property in the same way as residential. Both individuals and firms can borrow. Provided you have the right credentials and satisfy the simple requirements, lenders are willing to finance a purchase in a number of locations across the city.

Better Commercial can help you sort out your mortgage through Independent Finance, our preferred financing partner.

Can a foreigner hold a freehold title in Dubai?

Yes. Freehold ownership of land and property for UAE and GCC citizens has been legalised, while allowing the same rights to non-GCC expatriates to pre-designated areas that will be approved by the Ruler of Dubai. In Dubai, commercial freehold property is available in many areas, including Business Bay, Jumeirah Lake Towers, Tecom, and DIFC.

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What additional facilities should I expect from my developer?

Visitor parking, large floor plates, business centre services, retail shops, restaurants, access control, and advanced IT systems are some of the additional facilities that developers of commercial properties provide.

Do I need commercial space to apply for a trade license?

Yes, the business requires a rented or owned commercial property in order to secure a trade license.

Will I be eligible for property, inheritance, and capital gains tax?

No property, inheritance, or capital gains taxes are payable in Dubai.

What are the opportunities for rental yield and capital growth?

With demand presently outweighing supply, the margins for capital gains that can be achieved through the purchase of off-plan property and the high rental returns on completion make buying commercial property a lucrative investment option.

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