Thinking of starting or growing your business? Then Dubai should be at the top of your list because it is considered a perfect launchpad mainly because of its global connectivity, and innovative and business-friendly environment, making Dubai something more than just a modern city. Dubai’s strategic location, seamless access to international markets, tax-friendly policies, extended visa options and supportive government make it a suitable choice for business activities, attracting businesses from all across the globe.
Over the years, the commercial real estate sector of Dubai has evolved into one of the most competitive sectors in the world. Around 30,000 new businesses were registered only in 2023, highlighting the growing demand for Dubai commercial properties and higher investment potential because the increase in demand leads to an increase in both sales and rental value. In simple terms, Dubai is considered a magnet for entrepreneurs and businessmen.
It is very important to understand the process of buying commercial property for sale in Dubai because proper understanding of this process helps people to make an informed decision. Familiarity with the rules and regulations that operate Dubai’s real estate sector leads to legal compliance and transparency. Suppose you are passionate about buying commercial property in Dubai. In that case, this blog is for you because it will help you understand the dynamics of Dubai property, negotiate a better deal and learn how to buy business property in Dubai.
Types of Commercial Properties in Dubai
Dubai boasts a wide range of commercial properties for sale, allowing people to find the most suitable investment option based on their specific needs and preferences. Commercial properties for sale in Dubai include office spaces, retail, startups, warehouses, industrial units and mixed-use properties, catering to the diverse needs of businesses including startups, SMEs, corporations and businesses involved in logistics and manufacturing. Commercial properties for rent and for sale also enable property investors to choose the most viable investment option.
Freehold vs. Leasehold Properties
Commercial real estate investors can purchase both freehold and leasehold properties. Freehold properties extend 100% property ownership rights, allowing property owners to use, sell and rent their purchased properties without any intervention. Given this, freehold commercial properties for sale in Dubai are deemed suitable investment choices. On the contrary, leasehold properties do not grant complete ownership rights and these properties are returned back to original owners when the lease period ends if it is not renewed.
Key Commercial Zones in Dubai
The commercial landscape of Dubai is divided into zones dubbed free zones and the mainland. Free zones are areas that extend 100% property ownership rights. Investors enjoy extensive returns and several tax exemptions if they invest in free zones of Dubai such as Jebel Ali Free Zone (JAFZ), Dubai Multi Commodities Centre (DMCC), etc. Mainland areas, on the other hand, fall under the category of the UAE government laws. Businesses are allowed to operate everywhere in Dubai and the UAE.
Top Locations for Commercial Investments
Business Bay
Business Bay is a mixed-use development in Dubai located on the banks of the Dubai Canal. This development is located near Downtown Dubai and normally comes with a wide range of residential and commercial properties. Commercial properties for sale in Business Bay include office spaces, retail, banks and shops. Given its strategic location, mixed-use modern properties, investment potential and growing interest of property investors, investing in commercial properties is a decent consideration to set up your business and generate extensive ROI.
Dubai International Financial Centre (DIFC)
Dubai International Financial Center (DIFC) is considered a global financial hub. It is located close to Downtown Dubai and Business Bay. Both residential and commercial properties for sale in Dubai are available in this area. Businessmen, entrepreneurs and working professionals find it a decent consideration because it comes with both residential and commercial properties. So if you desire to set up or expand your business in Dubai without compromising your living standard then buying a commercial property for sale in Dubai International Financial Centre is a popular investment choice because it is designed to expand your business and add to your comfort and solace.
Jumeirah Lake Towers (JLT)
Home to Dubai Multi Commodities Center (DMCC), Jumeirah Lake Towers is a mixed-use waterfront development in Dubai, featuring both residential and commercial properties. It is a freehold area that comes with retail, office spaces and hospitality venues. If you want to establish or expand your business in Dubai then you can invest in or purchase a shop or office in this neighborhood. Commercial properties for sale in Jumeirah Lake Towers are also available on the lease terms.
Sheikh Zayed Road:
Sheikh Zayed Road is considered a prime commercial zone in Dubai. Besides connecting several major business districts of Dubai, it also serves as a prime location for commercial activities. Considering its strategic location, it is considered a preferred choice for big corporations, legal firms, banks and other businesses.
Besides these locations, several other neighborhoods such as Dubai Marina, Dubai Media City, Dubai Hills, Dubai Harbour and Dubai Investment Park are also considered top locations for buying and renting commercial properties in Dubai.
Steps to Purchasing Commercial Property
- In the first place, you are required to define your budget. If you know what you are looking for or what is your primary objective then you will be able to make an investment choice that will align with your objectives, enabling you to realize your investment objectives.
- Once you define your investment, now time comes for setting a realistic budget. You should analyze your finances and income to define your budget. Also, check commercial properties’ prices in Dubai to set your budget.
- Location is the most important factor to consider because it can significantly influence the ROI potential of a property. So, choose a location that aligns with your business objectives such as accessibility, road connectivity and future growth prospects.
- Always verify the legal status of a property when investing in the property sector. Check legal ownership documents, service charges, zoning regulations and potential liabilities to make a prudent investment choice.
- Do not sign the sales and purchase agreement unless you review it and understand every terms and conditions mentioned in the agreement.
- Following the signing of the sales and purchase agreement, you need to complete the property registration process by submitting the required documents and paying the defined dues.
Costs Involved in Purchasing
When buying commercial property for sale in Dubai, property investors need to consider the full range of costs required in a property purchase. Besides paying the cost of a property, buyers are also required to pay registration fees of the Dubai Land Department (DLD), commission of real estate agents, maintenance and service charges. In addition to that, legal fees and mortgage management charges should also be considered when setting your budget to avoid any financial trouble later on.
Return on Investment (ROI) Potential
It is very crucial to understand the ROI potential of a commercial property in Dubai. Factors such as property type, location of a property and market trends determine the ROI potential of a property. No matter whether you desire to buy an office space, retail, or any other commercial property, you should consider its location, proximity to roads and other business hubs, occupancy rate, rental demands and operational costs. By considering these factors, property investors can explore and find investment options that suit them, ensuring efficient investments.
Conclusion
Dubai is a global hub for businesses and investment. Businesses, entrepreneurs and big corporations normally prefer Dubai for their commercial activities mainly because of the city’s strategic location, business-friendly environment and exceptional growth potential. If you want to establish or expand your business then you should Dubai for your commercial real estate investment. This city boasts a wide range of commercial real estate, facilitating investors coming from various backgrounds. Define your investment-related objectives, set your budget, research thoroughly and choose a property that is located at a prime destination to meet your investment objectives.
Partner With Us For Expert Guidance On Your Dubai Real Estate Purchase!
Kelt and Co Realty is a prominent real estate agency in Dubai. This property company helps people buy, sell and rent all types of residential and commercial properties. People who desire to invest in Dubai and buy commercial property to expand their businesses in Dubai should get our assistance to make a profitable investment choice. Our real estate agents are dedicated to offering tailor-made real estate services.
FAQs
Can foreigners buy commercial property in Dubai?
Yes. Foreigners can purchase all kinds of residential and commercial properties in Dubai’s freehold areas such as Business Bay, Downtown Dubai, etc. Expats and foreign nationals can buy properties in these designated areas to enjoy 100% property ownership rights.
What is the difference between freehold and leasehold property?
Properties that give complete ownership rights are dubbed freehold properties. These properties extend complete ownership rights to buyers. Both local and foreign nationals can purchase all types of properties located in freehold areas of the city. Leasehold properties, on the other hand, are properties that extend ownership rights for a limited period that can last for up to 99 years.
Are there taxes on income in Dubai?
No. Dubai does not levy annual income tax and capital gain tax. These tax exemptions also make Dubai a preferable investment choice. People who desire to generate extensive returns should invest in Dubai because this city extends high returns mainly because of tax benefits.
How can one ensure the property he is buying is legally safe?
You need to conduct due diligence such as checking the title deed, property ownership status and zoning regulations to ensure everything is going smoothly. Also, hire a real estate professional to ensure that everything is in order.
