Types of business premises in Dubai
In Dubai, the term business premises covers a broad spectrum. Office properties range from compact units (25 sqm) in business centres to full floors and stand-alone office buildings. Retail properties include shops, showrooms and food and beverage venues. Industrial premises comprise warehouses, production facilities and workshops.
Mixed-use premises combine several functions: for example, a showroom on the ground floor with office space on the upper levels. These multifunctional buildings are particularly popular in areas such as Business Bay, Al Quoz and Dubai Design District.
Choosing a location by business activity
The optimal location for your premises depends on your sector and business model. Financial services thrive in DIFC. Technology and media cluster in Dubai Internet City and Dubai Media City. Trade and commodities concentrate in DMCC and JLT.
Logistics and distribution require proximity to ports (JAFZA, Jebel Ali) or airports (DAFZA, Dubai South). Retail and hospitality call for high-footfall locations: JBR, City Walk, community malls. Manufacturing and crafts are based in Al Quoz, Dubai Investment Park and Dubai Industrial City.
Our team analyses your business activity and recommends the optimal location, taking into account accessibility, client profile, staff recruitment and future growth plans.
Trade licence and corporate structure
To use business premises in Dubai for your own company, you need a trade licence. In a free zone, this is issued by the free zone authority (e.g. DMCC, DIFC, DAFZA). On the mainland, the application runs through the DED (Department of Economic Development).
Trade licence costs range from AED 10,000 (basic free zone licence) to AED 50,000+ (mainland licence covering multiple activities). Visa costs for yourself and your staff come on top: AED 3,000–7,000 per visa.
Since 2021, foreign nationals may own 100% of their company in most mainland sectors, without a local sponsor. Our team works with specialised business setup consultants who manage the entire process.
Financing business premises
Several UAE banks offer commercial real estate financing. The terms are stricter than for residential mortgages: the loan-to-value ratio is 50–60% (versus 75% for residential), interest rates range between 5–7% and the maximum term is 15 years.
You will need a down payment of at least 40–50%, plus transaction costs of approximately 7–8%. Banks assess both your personal financial position and the rental income of the property when underwriting the loan.
Alternatives include developer financing (payment plans on off-plan), lease-to-own structures and joint ventures with local partners. Augusta Properties advises you on the optimal financing structure.
Yields and value growth
Business premises in Dubai deliver net rental yields of 7–12%, depending on the asset type. Offices generate 7–9%, retail units 8–10% and warehouses 9–12%. This significantly outperforms average yields in mature European markets such as the Netherlands (3–5%) and Belgium (4–6%).
Capital appreciation in commercial premises is driven by economic growth, new business formation and infrastructure development. The Dubai Economic Agenda D33 aims to double GDP over the coming decade, which will further fuel demand for commercial property.
Importantly, Dubai levies no capital gains tax on the sale of real estate. The full value appreciation is yours as owner, net of tax.