Office Purchase Price in Dubai

The cost of buying an office in Dubai depends on several key factors: building class, size, location and condition of the space. On average, prices range from AED 1,500 to AED 7,000 per sq. ft, depending on the location, level of fit-out, and additional features of the property.

Purchasing an office in Dubai is a serious investment, where it is important to consider not only the cost per square foot but also additional expenses such as registration fees, brokerage commissions, service charges, and potential fit-out costs.

Key Price Drivers

1. Location & prestige. The closer the property is to major business districts or iconic landmarks, the higher the price.
2. Building class & infrastructure. Modern buildings with high-speed elevators, advanced engineering systems, and parking facilities command higher prices.
3. Condition of the premises. Fully fitted offices ready for immediate occupation are more expensive than shell & core spaces that require additional investment.
4. Size and format. Smaller units are often more expensive per sq. ft, while larger spaces cost less per sq. ft but more overall.
5. Legal status. Properties in freehold zones, where foreign investors can own real estate outright, typically have higher demand and value.

Buyer Tips

• Assess the full cost: In addition to the price per sq. ft, consider registration fees with the Dubai Land Department (4%), brokerage commissions (approx. 2%), insurance, and annual service charges.
• Think long-term: Planned infrastructure and transport projects can significantly increase property value over time.
• Verify legal status: Ensure the property is in a freehold zone that allows foreign ownership.
• Conduct a technical audit: Check the condition and capacity of engineering systems, particularly HVAC.
• Calculate ROI: If the purchase is investment-driven, analyze potential rental income and projected capital appreciation.
• Work with experts: Professional consultants and brokers help reduce risks and streamline the purchase process.

FAQ

Can a foreigner buy an office in Dubai?

Yes. In freehold zones, foreign buyers have the right to full ownership of commercial properties. It’s important to confirm whether the specific building is located in a freehold zone.

Are there any taxes when buying an office in Dubai?

There is no personal income tax or capital gains tax in the UAE. Buyers pay a 4% registration fee to the Dubai Land Department and minimal administrative fees. There is no annual property tax in the conventional sense, but owners must pay service charges annually if they own a unit or floor. If the entire building is purchased, property management costs should also be considered.

Key Takeaways

• The average purchase price of an office in Dubai ranges from AED 1,500 to AED 7,000 per sq. ft, making it attractive for both mid-sized businesses and institutional investors.
• Location, building class, and ownership status are the main factors influencing price and liquidity.
• The final cost includes not just the property price but also additional expenses that should be planned for in advance.
• For long-term investment, properties in rapidly developing areas with growing infrastructure offer the best value.

Buying an office in Dubai can be a profitable and stable investment when approached strategically. With the right choice of location and a clear understanding of costs, this asset can generate both steady rental income and capital appreciation over time.