How much does a shop in Dubai cost?

Community retail starts from around AED 500,000 for small units in emerging areas. In established locations such as JBR or Downtown, prices start from AED 2 million. Per square foot, prices range from AED 1,000 (community) to AED 3,000+ (premium).

Which type of retail unit offers the best return?

Community retail in growth areas such as JVC, Dubai Hills and Town Square delivers the highest yields: 9–10% net. Premium street retail offers lower yields but stronger capital appreciation.

How long do retail leases run?

Retail leases typically run for 3–10 years. Larger chains often sign contracts of 5–10 years, including renewal options. This provides the landlord with long-term income security.

What if my retail unit stands vacant?

In a well-chosen location, vacancy is minimal. Community retail in densely populated areas maintains occupancy rates of 90–95%. We help you secure tenants through our network of retailers and food and beverage operators.

Do I need to provide the fit-out of the retail unit?

Typically you deliver the unit shell and core, and the tenant carries out the fit-out to match their brand and concept requirements. In community retail, a basic fit-out by the landlord can improve lettability. Fit-out costs run AED 200–600 per square foot.

Shops for Sale in Dubai | Augusta Properties

Buying a shop in Dubai

Dubai is renowned for its retail culture, and the market keeps growing every year on the back of sustained population growth and rising tourism. A shop in Dubai can be an excellent investment, with net rental yields of 8–10% and long leases of 3–10 years signed with established retail chains.

By the Augusta Properties team in Dubai

Types of retail property

The retail market in Dubai comprises several segments. Community retail covers ground-floor shops in residential buildings, serving everyday needs: supermarkets, pharmacies, beauty salons and casual dining. These units provide stable income with net yields of 8–10%.

Street retail is found along busy boulevards such as JBR The Walk, City Walk and La Mer. This is where fashion, dining and lifestyle brands establish themselves. Flagship stores in premium malls such as Dubai Mall, Mall of the Emirates and Dubai Hills Mall form a separate segment with high rents but equally high footfall.

Podium retail refers to shops on the lower levels of mixed-use towers, often with direct street-level access. This segment is popular in areas such as Business Bay, Dubai Marina and Downtown.

Prime locations for retail property

JBR (Jumeirah Beach Residence) offers a vibrant beachfront promenade with heavy footfall and strong tourist appeal. Retail units here start from AED 2,000 per square foot.

JVC (Jumeirah Village Circle) and Dubai Hills Estate are emerging community retail locations where the population is growing rapidly. Here you will find retail units from AED 1,000 per square foot with yields of up to 10%.

City Walk and Bluewaters Island deliver a premium open-air retail experience with a mix of international and local brands. Downtown Dubai offers retail units in the shadow of the Burj Khalifa, with enormous footfall from tourists and residents alike.

Leases and tenant mix

Retail leases in Dubai typically run for 3–10 years, providing long-term income security. In community retail, tenants are often established chains such as Carrefour Express, Life Pharmacy and local food and beverage concepts.

The tenant mix, the composition of occupiers in a building or complex, is critical to the success of a retail unit. A good mix of daily needs (supermarket, pharmacy), food and beverage, and services (hairdresser, laundry) attracts daily custom and reduces vacancy risk.

Tenants usually pay in advance via 2–4 cheques per year. In premium locations, the landlord may also negotiate a percentage of sales as rent (turnover rent) on top of a base rent.

Regulations and permits

Every retail activity in Dubai requires a specific trade licence from the DED (Department of Economic Development) or the relevant free zone authority. The type of permit depends on the activity: general trading, retail, food and beverage, or specialised services.

Retail premises are subject to specific requirements covering fire safety (Civil Defence approval), accessibility and signage (municipality permit). Selling food products requires an additional permit from Dubai Municipality.

Ejari registration of the lease is mandatory and protects landlord and tenant alike. Augusta Properties guides you through all permit-related matters.

Yields and investment analysis

Retail property in Dubai typically delivers 8–10% net rental yield, with community retail at the upper end of that range. Service charges for retail units range between AED 20–50 per square foot per year, depending on facilities and management.

When analysing a retail unit, we assess footfall, population density in the surrounding area, competing retail, parking availability and the quality of existing tenants. Together, these factors determine the durability of the rental income and the value potential of the asset.

Considered advice, for your situation

Tell us what you are considering, and an adviser from our team in Dubai will respond with figures prepared for your circumstances.