Types of office space in Dubai
Dubai offers several categories of office space:
Free zone offices: Located in one of the 30-plus free zones (DMCC, JAFZA, Dubai Internet City, Dubai Media City, DIFC). Free zones offer 100% foreign ownership, tax advantages and simplified visa procedures. Ideal for international companies.
Mainland offices: In commercial buildings outside the free zones. These require a mainland trade license, and since 2021, 100% foreign ownership has also been possible on the mainland. They offer greater flexibility in business activities.
Co-working and serviced offices: Flexible solutions with short contracts (month to month). Prices from AED 1,500 per month for a dedicated desk to AED 5,000 and above for a private office. Ideal as a starting point.
Business centres: Fully fitted offices with shared facilities, reception and meeting rooms. Contracts from six months.
Commercial lease terms
Commercial leases in Dubai typically run for one to five years, with longer terms preferred for larger spaces. Rent is expressed per square foot per year.
Indicative rents per sq ft per year: - DIFC: AED 200–350 - Business Bay: AED 80–150 - JLT: AED 60–100 - Dubai Internet City: AED 100–180 - Al Quoz / industrial areas: AED 40–70
Payment is typically made in two to four cheques per year. The security deposit is usually 5–10% of the annual rent. Some landlords also charge an agency fee of 5% of the annual rent.
The tenant typically pays DEWA (electricity and water), Ejari registration, chiller charges (AED 0.10–0.15 per sq ft per month for central cooling) and the municipality levy of 5% on the annual rent.
Fit-out and interiors
Commercial office space in Dubai is typically delivered 'shell and core' or 'warm shell'. Shell and core means bare space without ceilings, lighting, flooring or partitions. Warm shell includes basic ceilings, lighting and possibly floor covering.
Fit-out costs vary considerably: - Basic fit-out (flooring, ceilings, lighting, basic partitions): AED 80–150 per sq ft - Standard fit-out (including glass partitions, pantry, meeting rooms): AED 150–250 per sq ft - Premium fit-out (designer interiors, specialist materials): AED 250–500+ per sq ft
For a 1,000 sq ft office, this means an investment of AED 80,000–250,000 for a basic to standard fit-out.
Some landlords offer a fit-out contribution (three to six months rent-free) or a fit-out loan repaid through the rent. Always negotiate this when signing the contract.
Ejari for commercial leases
As with residential property, commercial leases must be registered through Ejari. The procedure is similar but requires additional documents: trade license, passport and Emirates ID of the authorised signatory, and a signed lease agreement.
The Ejari registration fee is AED 220. Without Ejari, you cannot renew a trade license and certain government services are inaccessible.
For free zone offices, registration works differently: the free zone authority administers the leases and Ejari does not always apply. The specific procedure varies by free zone.
RERA regulation for commercial property
RERA (Real Estate Regulatory Agency) also regulates commercial tenancies in Dubai. The key rules:
Rent increases: As with residential property, the maximum rent increase is governed by the RERA Rental Index. Landlords may raise the rent only where it sits significantly below market value.
Eviction: A landlord can evict a tenant only through the RDSC for non-payment, illegal use of the premises, or where the building is to be demolished or renovated. A 12-month notice period served through a notary is required.
Maintenance: The landlord is responsible for structural maintenance; the tenant for day-to-day upkeep and the fit-out.
Augusta Properties knows the RERA regulation for commercial property and advises international businesses on their rights and obligations.