Prime locations for restaurants
JBR (Jumeirah Beach Residence) is one of the most popular dining districts, with a lively beachfront promenade drawing thousands of visitors daily. F&B units here cost AED 2,000–3,500 per square foot.
City Walk and La Mer offer a premium outdoor dining experience with international and local concepts. DIFC's Gate Village has developed into a culinary hotspot with fine dining and fashionable lounges.
Business Bay, along the Dubai Water Canal, offers a growing supply of restaurant space in the podiums of office towers, with a mix of office workers by day and residents by night. Prices start from AED 1,200 per square foot.
For community F&B, cafés, bakeries, casual dining, JVC, Dubai Hills Estate and Town Square are attractive options with lower entry prices (AED 800–1,200 per square foot) and high yields.
Hospitality permits
Opening a restaurant in Dubai requires several permits. The trade licence from the DED (mainland) or the free zone authority forms the basis. On top of that, a food permit from Dubai Municipality is required, which enforces hygiene and food safety standards.
Serving alcohol requires a separate liquor licence, issued by the DTCM (Department of Tourism and Commerce Marketing). Not all locations qualify: only certain areas and building types are eligible.
Other permits include: a signage permit (Dubai Municipality), a music permit (for live music or DJs), a shisha permit and, where relevant, an outdoor seating permit. Total permit costs amount to AED 20,000–50,000 for an average restaurant.
The kitchen installation must comply with HACCP standards and is inspected by Dubai Municipality before opening. Our team connects you with specialised F&B consultants who manage the permit process.
Fit-out and technical requirements
The fit-out of a restaurant unit is considerably more expensive than that of standard retail. A full kitchen installation, with extraction systems, grease traps, refrigeration and HACCP-compliant work surfaces, costs AED 500–1,500 per square foot.
Total fit-out costs for a 2,000 square foot restaurant typically amount to AED 1–3 million, depending on the concept and level of finish. Casual dining concepts sit at the lower end, fine dining and lounge concepts at the upper end.
Technical requirements include an adequate power supply (three-phase, at least 100 kVA for a mid-sized restaurant), a gas connection, sufficient water pressure, a grease separator and a mechanical ventilation system compliant with Civil Defence standards.
Lease structures and returns
F&B leases often follow a hybrid structure: a fixed base rent plus a percentage of sales (turnover rent) above a set threshold. This aligns the interests of landlord and tenant.
Leases for restaurant space typically run for 5–10 years, with renewal options. The longer term compensates the tenant for the substantial fit-out investment. Net rental yields for F&B units amount to 8–11%, with community F&B at the upper end.
In some premium locations, the tenant pays key money at the outset, a one-off fee for the right to operate at that address. This can range from AED 50,000 to more than AED 500,000.
Investing in restaurant space as a landlord
You do not need to be a restaurateur to invest in F&B property. As a real estate investor, you acquire the unit and lease it to an F&B operator. The tenant handles the fit-out, permits and day-to-day operation.
When selecting an F&B unit as an investment, we assess footfall, parking, visibility, proximity to complementary dining, and the population density and income level of the catchment area.
Augusta Properties maintains a network of restaurateurs and F&B groups actively seeking locations in Dubai. We can place a qualified tenant in your unit quickly and effectively.