How much does it cost to rent an office in Dubai: what determines the rental price?

The cost of office space in Dubai depends on the location, building class, lease terms, zone type (Mainland or Free Zone), additional expenses not included in the base rent, as well as access to infrastructure and amenities. Average rental rates in the city range from AED 200-250 per sq. ft up to AED 500-600 per sq. ft, but prices vary significantly depending on the district, quality of the business complex, and the condition of the office.

To secure the best deal, it is crucial to understand the key factors that shape office rental costs in Dubai. Below we outline the main components that influence the total price, as well as important details to consider when choosing an office.

What makes up the total cost?

• Base office rent. In Dubai, office leases are typically annual contracts, paid quarterly (in four cheques or bank transfers). All four cheques must be provided at the time of signing the agreement, each with a future date. In some cases, landlords may ask for only two cheques, or even request one full payment upfront. In serviced offices and coworking spaces, monthly payments may be possible, though usually only for smaller units.
• Security deposit – normally 5-10% of the first year’s rent. In some cases, the deposit may equal one or two months’ rent.
• Utilities (DEWA – Dubai Electricity and Water Authority). Usually paid separately by the tenant according to registers, unless included in the rent.
• Air conditioning / chiller charges. May be included in the rent or billed separately.
• Service charge (operational expenses). Can either be included in the rental rate or billed separately.
• VAT (Value Added Tax) – 5%, generally not included in the rent.
• Indexation. Fixed in contracts longer than one year. For one-year leases, renewal indexation can be checked on the official RERA Rental Index (https://dubailand.gov.ae/en/eservices/rental-index/rental-index/#/).
• Brokerage commission (5-10%). Usually split between landlord and tenant, though in some cases fully covered by the tenant.
• One-off fees. For example, Ejari registration (mandatory contract registration).

Additional factors affecting the cost include the availability of parking and the overall condition of the office. If you choose a shell & core unit, you must budget for fit-out works (approximately USD 1,000 per sq. m) as well as time for obtaining all necessary permits and approvals – for contractors, layout modifications, renovation, and material delivery. After the works are completed, an inspection must issue a final occupancy permit. Keep in mind that obtaining approvals and completing the fit-out process can take a significant amount of time.

One of the best solutions for tenants is serviced offices – turnkey spaces, fully furnished and equipped with meeting rooms, kitchens, lounge areas, and professional equipment. Tenants benefit from high-speed internet, video conferencing systems, reception services, cleaning, and administrative support, all included in the rent.

Tip: Compare offers – prices within the same district can differ by 20-30%. Use online aggregators to evaluate options and always negotiate for individual terms, or work with professional brokers who can help you secure the best deal and handle the negotiations successfully.

When searching for an office in Dubai, don’t just focus on the rental rate. Consider the full scope of expenses, infrastructure, and required investments. Understanding these factors will help you find the best value-for-money office solution and ensure long-term success for your business in the UAE.