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How to Lease Commercial Property in Dubai

Posted by Kelt&corealty on May 29, 2024

Worried about how to lease commercial retail space? Do you want to expand your business in Dubai? Follow the mentioned steps to get a commercial property in Dubai for rent. Determine your specific requirements, research the commercial market trends, get the services of a real estate agent, inspect the property thoroughly, and then negotiate terms and conditions before signing the agreement. Do not forget to register your contract with the Ejari System Dubai.

Dubai has become one of the best destinations to establish your business. Political and economic stability in Dubai, favorable business policies of the government, streamlined processes, the state of the art commercial buildings, modern infrastructure and ease of doing business attract businessmen from all around the globe. Undoubtedly, setting up a business in a new locality is a daunting task and it involves a number of processes such as leasing commercial properties in Dubai.

Choosing the right commercial property plays a critical role in the overall growth of your business. If you are a novice entrepreneur or an adept businessman, you need to choose the best place to lease a commercial property to make business operations seamless. In this blog, we will cover all processes involved in leasing commercial properties and guide you on how to lease a commercial property in Dubai

Renting VS Leasing Properties

Normally, both terms are used interchangeably. But there is a subtle difference between both terms. It is necessary to understand the difference between both concepts to make the right choice based on your interests. The duration of the arrangement determines whether it is renting or leasing. Leasing is a long-term or extended contract or agreement. It means a tenant or lessee can use that particular property for a longer or extended period. On the other hand, renting involves a short-term contract between the landlord and the tenant. 

How To Lease A Commercial Property In Dubai?

Here is a step-by-step guide to make you understand the process and navigate smoothly to find the most suitable and favorable space for your business.

Identify Your Requirements

Before initiating your search for commercial properties, you need to understand your needs and requirements. It is necessary to clarify your needs such as the type of property that suits your business, the size of the property or space, the location of a property based on the demand of your business, required facilities and amenities and also you need to outline your budget. Proper understating of your specific requirements will help you find the most viable option in an efficient way.

Understand The Market Dynamics

A tenant should research the property market after specifying your requirements. Learn about rental rates, market trends and potential for growth in different areas. If you understand market dynamics, you will be in a better position to negotiate a favorable deal. An understanding of the commercial leasing market will ensure you make informed decisions. 

Involve A Real Estate Agent

You should also research on your own to find the most suitable spot. However, do not negate the importance of getting the services of a professional. A real estate agent in Dubai can save your time and energy and find the most suitable option based on your defined needs and requirements. Kelt & Co Realty’s professional team is known for its outstanding real estate services. Its agents find commercial properties that suit your business goals and budget.

Conduct An Inspection

Your real estate agent will help you shortlist some suitable properties. Then you should visit in person to inspect them and evaluate the condition of those properties. Analyze the layout and the available facilities and amenities, the overall condition and required renovations before proceeding with the deal.  

Negotiate Terms And Conditions

After choosing a property, it is time to negotiate terms and conditions and draft an agreement or lease contract. A tenant or lessee should discuss all concerns. Furthermore, you also need to decide on the duration and the type of the lease, rent and payment method or term, security deposits, maintenance responsibilities and options to renew the lease agreement. Before signing the agreement, give a read to the drafted contract to ensure that all terms and conditions align with your interest. 

Sign The Lease Agreement And Get It Registered

After reviewing the lease agreement, if you do not find any objectionable clause, sign the lease agreement with the landlord. After signing the agreement, get it registered with the Ejari system Dubai to give it a legal shape. After registering with Ehari, your agreement will be recognized legally. 

Types Of Commercial Lease

Types Of Commercial Lease:

Gross Lease

A tenant pays the full rent and the landlord is liable to cover all other property-related expenses such as taxes, maintenance charges, etc. The tenant or lessee normally pays the agreed amount of rent whereas the property owner is responsible for all other involved expenses.  

Land Lease

Under this lease agreement, the tenant is liable to pay for a piece of land to construct an infrastructure or building. The tenant constructs a building for commercial purposes or conducts business. When the lease agreement finishes, the property owner gets the hold of the land as well as the building. 

Modified Net Lease

Under this lease agreement, a tenant pays the agreed rent. However, all other costs or expenses are shared between tenant and landlord. 

Triple Net lease

Under this tenancy contract, a tenant or lessee is responsible for all property-related expenses such as taxes and other maintenance costs. The tenant is liable to pay rent and manage all other costs of owning a property in Dubai under Triple Net Lease. 

Required Documents To Lease A Commercial Property In Dubai:

If you want to lease a commercial property in Dubai to grow your business further, you need to have the following documents.

  • Proof of business ownership
  • The status of the property 
  • A copy of the trade license
  • Passport copy 
  • Emirates ID copy
  • Permits to use that property
Required Documents To Lease A Commercial Property In Dubai

The Most Important Point To Consider:

The most crucial element is to identify your financial means or resources and consider factors related to expenses such as annual rent, security deposit, and other costs related to that property before making a final decision. Also, research the RERA rent increase with the help of the RERA rent increase calculator to get an exact idea about the rent increase.

Can I sublet commercial property in Dubai?

Yes. It is allowed to sublet your commercial property in Dubai but with the approval of the property owner. Though you can further lease the property to another tenant but you need to get the written approval of the landlord. If you intend to sublet your property, you can also add a clause related to it in the lease contract.

Rent Payment Of Leased Commercial Properties In Dubai, UAE:

In Dubai, normally the rent is paid through cheques. A tenant can issue a check from his personal or company’s account. Before moving to the property, a tenant is also liable to pay a security deposit that is 5% of the total annual rent. This security deposit is refundable and the landlord can also use it to address damages that occurred during the tenancy period.

Early Termination Of A Commercial Property Lease Contract

After one year, the contract is automatically renewed because one year is the standard duration of a commercial lease. Both parties can mutually end the tenancy contract after one year. However, if a tenant or lessee terminates the contract before the completion of a year, he may be penalized. A landlord may ask for compensation for the loss incurred upon him for this early termination of the contract.

The Bottom Line:

Dubai is one of the best destinations to live, start and expand your businesses. Its unparalleled infrastructure and favorable policies facilitate business conduct and also attract investors, boosting Dubai’s rental business. If you want to lease commercial property in Dubai then you need to follow specific steps: conduct thorough research to identify your objectives, understand the market dynamics, get the services of a real estate agent in Dubai, inspect the property, draft a sample contract for commercial space rent, sign the agreement and get it registered with Ejari system. 

Struggling To Find A Commercial Property For Lease In Dubai? Look No Further Than Kelt & Co Realty

Kelt & Co Realty is a prime real estate agency that offers all sorts of property-related services. Its professional team finds feasible and attractive commercial and residential options for buying and renting based on the interests and objectives of our potential clients. If you are seeking a commercial space then get our services to find the best available option because we believe in delivering quality results to meet the ends of our clients.


How to rent commercial property in Dubai?

Obtain a trade license from Dubai Economic Department to lease a commercial property in Dubai. Get the services of a real estate agent after identifying your objectives to find the most suitable leasing option based on your preferences. Kelt & Co Realty’s professionals guide and walk you through this process to meet your desired ends.

How much does a commercial license cost in Dubai?

The cost of getting a commercial license from the Dubai Economic Department normally ranges from AED 15,000 to AED 28,500. One also needs to consider additional expenses such as extra registration, visa fees and other costs.

What are the different types of commercial properties available in Dubai?

Dubai offers a range of commercial property investment options such as shops, showrooms, commercial buildings, office spaces, warehouses, etc. You can rent or buy commercial properties in Dubai based on your preferences. Foreign investors can also purchase commercial properties in freehold zones of Dubai.

Is commercial property a good investment in Dubai, UAE?

Given the political and economic stability, unparalleled growth and development, strategic location, attractive skyline and favorable investment policies make it a good place for real estate investment. So, whether you invest in commercial or residential real estate in Dubai, you are likely to generate significant revenue.


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