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The soft tax policy, economic stability, and the increase in the influx of expats and tourists have made Dubai an excellent location for doing business. Today many people want to buy not only residential but also commercial property in Dubai to convert it into cafes, shops, restaurants, and other infrastructure facilities. You can also purchase a ready-made business. The main thing is to choose the right location with people able to pay. Let’s review the most promising and well-established districts of Dubai from this perspective.
Content:
- Dubai’s most popular districts for buying commercial property
- Business Bay
- Jumeirah Lake Towers
- International City
- Jebel Ali
- Al Quoz
- How much do commercial properties in Dubai cost?
Dubai’s most popular districts for buying commercial property
In 2022, Business Bay, Jumeirah Lake Towers (JLT), International City, Jebel Ali, and Al Quoz were the most sought-after districts for purchasing commercial property.
Business Bay
This hub of business life is directly connected to Dubai’s heart, Downtown Dubai. Business Bay is always humming with activity: this area is packed with skyscrapers, offices, luxury residential developments, and entertainment venues. Properties here are more expensive than in the Emirate’s other districts; therefore, it is affluent. Business Bay attracts tourists; it is heavily visited and very popular. The district is also a transport hub, so you can easily get anywhere in the city. It takes only 15 minutes to reach DXB Airport. What’s more, Business Bay is connected to the global financial hub of DIFC, Al Safa and Jumeirah districts, Sheikh Zayed Road, which is the longest street in the Emirate. All these are just a few minutes’ drive away.
Investors can purchase premises for any purpose in this district:
- offices
- commercial floors
- individual shops
The average price of offices is AED1.28 million ($348,500), while shops cost AED2.5 million ($680,500).
Jumeirah Lake Towers
This residential district is just eight minutes from the waterfront communities of Dubai Marina and JBR, and ten minutes from The Palm Jumeirah artificial island. JLT has an excellent infrastructure for recreation and sports: three artificial lakes, parks, jogging tracks, bike paths, and pedestrian areas. The district is considered one of the most attractive for renting apartments and villas in Dubai. Due to the peaceful and slow-paced atmosphere, many prefer to stay here for long. There are also always a lot of tourists in Jumeirah Lake Towers due to the proximity to Dubai’s most famous attractions.
Commercial property costs an average of AED1 million ($272,300).
International City
This district mostly consists of residential developments. Cafes, restaurants, shops, supermarkets, and fitness centres are in great demand. The high concentration of residential buildings creates a need for enough commercial facilities. Residents want to shop, do sports, and dine close to home without travelling far beyond the district. International City is a great place to invest, with many commercial properties currently for sale. You can even buy entire buildings. Shops are also available for purchase, their average cost is about AED500,000 ($136,000). This price is for properties with an area of about 60 m2.
Jebel Ali
This is one of the Emirate’s largest commercial ports and business hubs, located in the south of the city. In this district, you can run a manufacturing or logistics business or open a shop, cafe, or restaurant. Any entrepreneurial venture has every chance of becoming in-demand and making a profit. Jebel Ali is home to the largest free zone, Jafza, which brings together over 7,500 registered businesses. The average price of commercial premises is from AED 800,000 to AED 1 million ($218,000 to $272,300). The cost depends on the area and basic features of the property: whether it has parking, how many floors it has, and other parameters.
Al Quoz
This is another attractive business location. Al Quoz is a densely populated mixed-use district in the west of the Emirate, where you can buy a shop, warehouse or, for example, an exhibition space—if your goal is to make a large-scale investment. Warehouse areas vary from 1,000 to 3,000 m2, and the prices range from AED 5 to 11 million ($1.3 to 2.9 million). The estimated cost of exhibition spaces as of 2023 is AED 9 million ($2.4 million).
How much do commercial properties in Dubai cost?
Depending on your financial capabilities, you can choose either a budget-friendly or a high-end property. The cost of office spaces starts at AED 200,000 ($55,000), and shops, at AED 245,000 ($67,000). More expensive properties include warehouses and commercial premises. The cost of the former is from AED 1 million ($272,300), and the latter, from AED 3.2 million ($871,300). You can also always invest in an off-plan property, which is cheaper while at the construction stage.
If an investor purchases a buy-to-let property, they can receive an annual return of 4 to 8%. In case you plan to resell it later, it is worth considering recent statistics. In 2022, commercial property prices increased by 10%. You can always resell premises at a better price.
If you are going to run a business, you should decide what area and number of stories you need, what utilities it must feature, and choose a property accordingly. If you have an appropriate budget, you can buy an entire building to start a guest house, a hotel, or a sports centre. There are many options for managing commercial property.
Since 2006, a law has been in force in the UAE that allows not only locals but also foreign nationals to acquire commercial property and enjoy full private ownership.
If you are planning to buy commercial property in the UAE, we suggest you seek advice from our experts. To do this, just call or message us in the online chat on our website. Our professionals will tell you about all the nuances and options available for purchase.
