Buying an office in Dubai
Dubai is a global business centre and demand for office space continues to grow steadily. Whether you are looking for an office for your own use or as an investment, the market offers units from 25 sqm up to entire floors, in locations ranging from the prestigious DIFC to the affordable JLT. With net rental yields of 7–9% and leases of 3–5 years, an office in Dubai is a solid investment.
Prime locations for offices
Business Bay is the beating heart of corporate Dubai, with hundreds of office towers lining the Dubai Water Canal. Office units here start from AED 800 per square foot, with net rental yields of around 7–8%. Accessibility is excellent thanks to the nearby metro and Sheikh Zayed Road.
DIFC (Dubai International Financial Centre) is the premium address for financial services firms, law practices and consultancies. Offices in Gate Village and ICD Brookfield Place start from AED 2,000 per square foot, but provide the prestige address that international clients expect.
JLT (Jumeirah Lake Towers) is the affordable alternative, with office units from AED 500 per square foot. The DMCC free zone is based here, making it popular with trading and commodities firms. Barsha Heights and Dubai Internet City are equally sought-after locations for tech and media companies.
Free zone offices versus mainland
In free zones such as DMCC, DAFZA and Dubai Internet City, you acquire an office that is automatically linked to the relevant free zone licence. This brings advantages such as 100% ownership, no import duties and simplified visa applications for staff.
On the mainland, for example in Business Bay or Downtown, you operate under a DED licence (Department of Economic Development). This gives you greater freedom to do business across the entire UAE, but requires a separate trade licence application. Our team helps you make the right choice based on your business activities and target market.
Office types and configuration
The market offers several office types. Shell and core units are delivered unfinished, allowing you to determine the layout and finish yourself. Fitted offices come with a basic configuration including raised floors, suspended ceilings and air conditioning. Fully furnished offices are ready for immediate occupation.
Fit-out costs for a shell and core office average AED 150–400 per square foot, depending on the level of finish. Many developers now also offer co-working-ready units and managed offices, which provide flexibility for growing businesses.
Financing and costs
Commercial mortgages are available from UAE banks, generally up to 50–60% of the purchase value for foreign buyers. Interest rates range between 5–7% per year. You will need a minimum down payment of 40–50%.
On top of the purchase price, you pay a 4% DLD transfer fee, 2% agency commission and administrative charges (approximately 7–8% in total). Annual service charges range from AED 15–40 per square foot, depending on the building and its facilities.
Also budget for DEWA connection fees (electricity and water), Ejari registration of the lease and any permit costs for alterations to the unit.
The purchase process step by step
Step 1: We assess your requirements, budget and objective (own use, letting, or a combination). Step 2: You receive a curated selection of office units with market analysis and yield forecasts. Step 3: Viewings are accompanied by one of our advisers.
Step 4: Once you have made your choice, you sign the MOU and pay the deposit. Step 5: We carry out due diligence (title deed, service charges, existing leases). Step 6: The transfer of ownership is registered with the DLD and you receive your title deed.
Personal guidance from Augusta experts
Every situation is different. Our advisors would be pleased to discuss your requirements, entirely without obligation.
Frequently asked questions
How much does an office in Dubai cost?+
Prices vary considerably by location. In JLT, entry-level units start from around AED 350,000. In Business Bay from AED 700,000, and in DIFC from AED 2 million. Per square foot, prices range from AED 500 (JLT) to AED 3,000+ (DIFC).
What rental yield does an office generate?+
Offices in Dubai deliver an average net rental yield of 7–9%. JLT and Business Bay score highest (8–9%), while DIFC comes in slightly lower (6–7%) but offers stronger capital appreciation.
Do I need a licence to buy an office?+
No, you can buy an office purely as an investment without a trade licence. If you want to occupy the office for your own business, you will need a trade licence, either in a free zone or on the mainland.
How long do office leases in Dubai run?+
Commercial leases typically run for 1–5 years, with 3–5 years preferred for larger units. Tenants usually pay in advance via 1–4 cheques per year. Rent increases for commercial property are not bound by the RERA rental index, unlike residential.
Can I finance an office in Dubai with a mortgage?+
Yes, several UAE banks offer commercial mortgages to foreign buyers. The loan-to-value ratio is typically 50–60%, with terms of 10–15 years and interest rates between 5–7%.