Investing in commercial real estate in Dubai: offices and retail

Commercial real estate attracts investors looking for yields that are often higher than residential, with longer leases. However, it follows different rules.

Types of assets

• Offices, in business towers or dedicated zones.
• Retail units on the ground floor of buildings or in shopping centres.
• Professional premises, warehouses and mixed-use spaces.

What drives value

Location, building quality, accessibility, the number of parking spaces, the presence of nearby companies and tenant stability are decisive. A unit left vacant for a long time weighs heavily on profitability.

Leases and tenants

Commercial leases are generally longer than residential ones, with a professional tenant taking on part of the fit-out. The tenant's financial soundness and the renewal clause are essential points to check.

Districts to consider

Business Bay, the Dubai International Financial Centre (DIFC), Jumeirah Lakes Towers and other business zones concentrate office supply. The choice depends on the target clientele, accessibility and the level of rents charged.

Points of caution

• Market size: narrower than residential, it takes longer to resell.
• Service charges and refurbishment costs between two tenants.
• Taxation applicable to companies and commercial income.
• Usage rules specific to each zone and each unit.

Who is it for?

Commercial real estate suits an investor who accepts a less liquid asset, is looking for stable income and can assess a professional tenant. It should not be approached the same way as a residential purchase.

To review your project and check the conditions currently in force, book an appointment with Arzouni Properties.