Types of commercial property in Dubai
- Offices: in business districts such as Business Bay, Jumeirah Lake Towers (JLT) and around DIFC, from single units to full floors
- Retail: ground-floor shops in residential projects and street-front stores
- Warehousing and logistics: in areas such as Al Quoz, Dubai Investments Park and Dubai South
- Hotel apartments: units managed by a hotel operator with a short-stay focus
How it differs from residential
| Criterion | Residential | Commercial |
|---|---|---|
| Tenants | Individuals and families | Companies and businesses |
| Lease | Usually one year | Often 1–3 years, longer with corporate tenants |
| VAT | Generally none on sale or rent | 5% VAT on sale price and rent |
| Vacancy risk | Lower | Higher; re-letting can take time |
| Financing | More widely available | More limited, lower loan-to-value |
Tax and structure: VAT, corporate tax, companies
Commercial property sales and leases are subject to 5% VAT, and investors whose annual taxable supplies exceed AED 375,000 must register for VAT. Individuals’ real estate investment income that does not require a licence is generally outside corporate tax, while investments held through companies may be subject to 9% corporate tax.
We recommend agreeing the investment structure with a tax adviser before the transaction.
What we assess in commercial investments
- Tenant quality, lease length and payment history
- Vacancy and new office/retail supply in the area
- Fit-out condition and refurbishment needs
- Service charges, parking, access and, for retail, visibility
- The gap between passing rent and market rent
- Exit liquidity and likely buyer profile
Why commercial experience matters
In commercial property, value depends largely on the sustainability of the tenant and the business. My experience with commercial property and business transfers in Türkiye helps me assess opportunities in Dubai realistically in terms of tenants, leases and cash flow.
Frequently asked questions
Can foreigners buy offices or shops in Dubai?
Yes. Foreigners can buy offices, shops and other commercial property in freehold areas. You may not need a company to let the property; we agree the structure based on your goals.
How does VAT work on commercial property?
Commercial property sales and rents carry 5% VAT. If your rental income exceeds the annual threshold, you must register for VAT and file returns.
Office or retail?
Offices offer longer leases with corporate tenants, while retail value depends heavily on location and footfall. The choice depends on budget, risk appetite and local demand.