Published on and written by Cyril Jarnias
Dubai, the jewel of the United Arab Emirates, has become a premier destination for entrepreneurs worldwide. With its dynamic economy, state-of-the-art infrastructure, and business-friendly environment, the city offers numerous opportunities to establish your company. However, finding the perfect retail space, office, or warehouse for your business can be a significant challenge. In this article, we’ll guide you through the essential steps to find the professional space that best fits your needs in Dubai.
The Real Estate Treasure Hunt: How to Find the Hidden Gem?
Finding the ideal commercial space for your business in Dubai requires a strategic and methodical approach. Here are some tips to optimize your search:
Define your needs precisely: Before starting your search, create a detailed list of your requirements. Consider the necessary square footage, desired location, allocated budget, essential facilities, and specifics related to your industry. This crucial step will help you effectively target listings that match your criteria.
Utilize online resources: The internet is filled with platforms dedicated to commercial real estate in Dubai. Websites like Property Finder, Bayut, and JustProperty offer numerous listings for offices, retail spaces, and warehouses. Use search filters to refine your results and save valuable time.
Hire a specialized real estate agent: Local professionals know the market inside out and can save you considerable time. They often have access to exclusive listings and can negotiate on your behalf. Choose an agent licensed by RERA (Real Estate Regulatory Agency) to ensure quality service.
Explore free zones: Dubai has numerous free zones offering tax and regulatory benefits to foreign companies. These zones, like DMCC (Dubai Multi Commodities Centre) or DAFZA (Dubai Airport Free Zone), often provide office spaces and warehouses suitable for various business sectors.
Visit locations in person: Once you’ve identified some interesting options, don’t hesitate to visit them physically. This will allow you to assess the environment, accessibility, and actual condition of the premises. Take the opportunity to speak with property owners or building managers for additional information.
Good to know:
Finding professional space in Dubai can take time. Allow at least 2-3 months to find the ideal space and complete administrative procedures.
Real Estate Aces: The Best Agencies for Your Quest
To facilitate your search for commercial space in Dubai, it’s wise to work with reputable real estate agencies. Here’s a selection of the top agencies specializing in commercial real estate in Dubai:
CBRE: A global leader in commercial real estate, CBRE has a strong presence in Dubai. Their team of local experts offers comprehensive services, from space search to asset management.
JLL: Another international giant, JLL provides a complete range of real estate services for businesses in Dubai. Their deep knowledge of the local market makes them a preferred partner for finding ideal space.
Savills: With sharp expertise in the commercial real estate sector, Savills offers customized solutions for companies looking to establish themselves in Dubai.
Better Homes: This well-established local agency has a wide portfolio of commercial properties in Dubai. Their multilingual team facilitates communication for international entrepreneurs.
Allsopp & Allsopp: Specializing in luxury real estate, this agency also offers commercial real estate services, with particular attention to each client’s specific needs.
When choosing an agency, ensure they’re licensed by RERA and ask for references from previous clients. Don’t hesitate to compare service offerings and fees from multiple agencies before making your decision.
Good to know:
Real estate agency fees in Dubai typically range between 2% and 5% of the annual rent for commercial leases. These fees are often the tenant’s responsibility.
The Winning File: Essential Documents to Finalize Your Lease
To lease commercial space in Dubai, you’ll need to provide several documents. Prepare them in advance to speed up the process:
Trade license: This is the most important document. It proves your company is legally authorized to operate in Dubai. If you’re in the process of establishing your business, a letter of intent from the relevant authority may sometimes suffice.
Passport and visa: Copies of the passport and residence visa of the company owner or general manager are typically required.
Emirates ID: If you’re a UAE resident, a copy of your Emirates ID will be requested.
Company memorandum: This document details your company’s ownership and management structure.
Bank statements: Landlords may request bank statements from the last 3-6 months to verify your solvency.
Business plan: In some cases, particularly for startups, a detailed business plan may be required to demonstrate your project’s viability.
Bank guarantee or security check: Many landlords require financial security, often in the form of post-dated checks covering several months’ rent.
Authorization letter: If you’re acting on behalf of the company without being the owner, you’ll need a letter authorizing you to sign the lease.
It’s important to note that requirements may vary depending on the property type, free zone, or landlord. Always check with your real estate agent or directly with the landlord for the exact list of required documents.
Good to know:
Most documents will need to be in Arabic or accompanied by a legalized translation. Allow extra time for translation and legalization if necessary.
The Bottom Line: How Much Does Professional Space Cost in Dubai?
The cost of leasing commercial space in Dubai can vary significantly depending on several factors. Here’s an overview of price ranges for different types of spaces:
Offices: – Central business district (DIFC, Downtown): 150-300 AED/square foot/year – Secondary areas (Business Bay, Sheikh Zayed Road): 80-150 AED/square foot/year – Peripheral areas (Dubai Silicon Oasis, IMPZ): 40-80 AED/square foot/year
Retail spaces: – Premium locations (Dubai Mall, Mall of the Emirates): 300-1000 AED/square foot/year – Neighborhood shopping centers: 150-300 AED/square foot/year – Ground-floor shops: 100-250 AED/square foot/year
Warehouses: – Industrial areas (Al Quoz, Dubai Investment Park): 30-60 AED/square foot/year – Logistics free zones (Jebel Ali Free Zone): 40-80 AED/square foot/year
It’s important to note that these prices are indicative and may fluctuate depending on facility quality, building age, and market conditions. Additionally, don’t forget to account for additional charges:
- Service charges: Typically between 10% and 20% of annual rent
- Security deposit: Often equivalent to 3 months’ rent
- Agency fees: 2% to 5% of annual rent
- Air conditioning charges: Sometimes billed separately, especially for large spaces
- Municipal tax: 5% of annual rent for commercial spaces
Strategies to optimize your costs: – Negotiate! Landlords are often open to discussion, especially for long-term leases. – Consider coworking spaces or flexible offices to start, which can significantly reduce your initial costs. – Explore free zones that offer all-inclusive packages, including trade license and office space.
Good to know:
Rents in Dubai are typically paid one year in advance, often in the form of post-dated checks. However, with increasing competition, more landlords are accepting quarterly or semi-annual payments.
Hidden Gems: Where to Set Up Shop at Lower Cost in Dubai
Although Dubai is known for high rents, there are areas where businesses can establish themselves at more affordable costs while still benefiting from the city’s advantages. Here are some of the best options for budget-conscious entrepreneurs:
Dubai Silicon Oasis (DSO): This technology free zone offers office spaces and warehouses at competitive rates. Ideal for startups and technology companies, DSO also provides incubators and entrepreneur support programs.
Dubai Investment Park (DIP): This mixed-use zone combines industrial, commercial, and residential spaces. Rents are generally lower than in the city center, making it a smart choice for manufacturing or logistics companies.
International Media Production Zone (IMPZ): Renamed Dubai Production City, this zone offers spaces suitable for media and creative businesses at attractive rates. It’s particularly interesting for advertising agencies, publishing houses, and production companies.
Dubai Studio City: Although specialized in the film and television industry, this zone offers offices and production spaces at competitive prices for various creative businesses.
Jumeirah Lakes Towers (JLT): Although more central, JLT offers more affordable office options than its prestigious neighbors like Dubai Marina or DIFC. It’s an excellent compromise between location and cost.
Al Qouz Industrial Area: For businesses requiring warehouses or workshops, Al Qouz offers spaces at very competitive rates. Its proximity to the city center makes it a practical option for many companies.
Tips to maximize your low-cost setup: – Consider developing areas: New expanding zones often offer promotional rates to attract businesses. – Opt for older buildings: They’re generally cheaper than recent constructions while often offering good value for money. – Explore subleasing options: Some companies sublease part of their space, which can be an economical short-term solution.
Good to know:
Free zones often offer all-inclusive packages including trade license, office space, and visas, which can prove more economical than leasing separately on the mainland.
Official Support: Rental Assistance for Businesses in Dubai
Although Dubai is known for its liberal economy, the government and various organizations offer initiatives to support businesses, particularly regarding professional space leasing. Here are some of the main available supports:
Dubai SME incubation program: This initiative by Dubai’s Department of Economic Development offers SMEs and startups subsidized office space in certain city areas. The program also includes business coaching and access to funding.
Dubai Future Accelerators: This government program offers innovative startups free workspace during the acceleration program duration, plus access to mentors and collaboration opportunities with government entities.
Free zone advantages: Although not directly rental assistance, many free zones offer all-inclusive packages at preferential rates, including trade license, office space, and visas.
Dubai Design District (d3): This creative zone offers subsidized spaces for young designers and emerging creative businesses as part of its incubation program.
In5 Innovation Centers: Managed by TECOM Group, these innovation centers offer subsidized workspace plus comprehensive support for startups in technology, media, and design fields.
Municipal initiatives: Some Dubai municipalities occasionally offer rental fee reductions or grace periods for new businesses setting up in developing areas.
How to benefit from these supports: – Inquire with Dubai’s Department of Economic Development or the free zone authority where you want to establish. – Prepare a solid business plan and convincing presentation of your company. – Be ready to demonstrate how your business will contribute to the local economy and align with Dubai’s development objectives.
Good to know:
Eligibility criteria for these support programs are often strict and competition can be fierce. Start your applications well in advance and don’t hesitate to seek help from a local consultant to maximize your chances.
Finding the ideal space for your business in Dubai may seem like a daunting task, but with the right information and a strategic approach, you can discover the hidden gem that will propel your business toward success. Whether you choose a prestigious office in DIFC, a functional warehouse in Al Quoz, or a creative space in Dubai Design District, Dubai offers numerous options to meet every business’s needs.
Remember that your location choice will significantly impact your long-term success. Take the time to properly evaluate your options, negotiate the best terms, and ensure your choice perfectly aligns with your business objectives.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
