Dubai’s real estate market has long attracted investors from around the world. With high rental yields, a business-friendly government, and modern infrastructure, it's no surprise that entrepreneurs and global investors are exploring ways to buy commercial property in Dubai.
Whether you're planning to open a shop, buy an office space, or invest in a warehouse, this guide will walk you through each step of the buying process and address key questions like: Can foreigners buy property in Dubai? and What legal procedures must be followed for buying commercial property in Dubai?
Why Buy Commercial Property in Dubai?
Dubai is not just a luxury real estate destination — it’s also a hub for global trade and business. Here’s why buying commercial property here is a smart move:
- High ROI: Rental yields range between 6% to 9% depending on location and property type.
- 100% Foreign Ownership: Designated areas allow full ownership without the need for a local sponsor.
- No Property Tax: There is no annual property tax or capital gains tax.
- Modern Infrastructure: Dubai offers state-of-the-art facilities, roads, and free zones tailored for business.
Residency Eligibility: Property investment may lead to long-term residence visas in some cases.
Can Foreigners Buy Property in Dubai?
Yes, foreign nationals can buy commercial property in Dubai, but only in designated freehold areas. These areas are authorized by the Dubai Land Department (DLD) and allow full ownership of land and property to non-UAE citizens.
Popular freehold zones for commercial property include:
- Business Bay
- Jumeirah Lake Towers (JLT)
- Dubai Marina
- Downtown Dubai
- Dubai Silicon Oasis
- DIFC (with restrictions)
In some free zones, like DMCC (Dubai Multi Commodities Centre), foreigners can also own business licenses and buy property under the name of a company.
Step-by-Step Guide to Buying Commercial Property in Dubai
Step 1: Define Your Purpose and Budget
Before entering the market, ask yourself:
- Are you buying to occupy or invest and lease?
- What’s your ideal location? (Near metro, in a free zone, etc.)
- What is your budget, including fees and setup costs?
Having clarity will narrow down your options and help you avoid unnecessary expenses.
Step 2: Choose the Right Location
Location is everything when buying commercial property in Dubai. Some areas are ideal for retail, while others are better suited for office spaces or logistics hubs.
Step 3: Find a Reputable Real Estate Agent or Broker
Work with RERA-certified brokers who understand commercial real estate. They’ll help you:
- Shortlist properties based on your needs
- Verify ownership documents
- Negotiate pricing and terms
- Ensure legal compliance
You can also explore property listings on platforms like:
- ElitePropertyDXB.com
- Property Finder
- Bayut
Step 4: Conduct a Legal Check and Property Inspection
Before proceeding, ensure:
- The seller has legal ownership of the property
- There are no outstanding mortgages or dues
- The property complies with business licensing regulations (zoning matters!)
- The building is maintained and has valid permits
Tip: Hire a legal consultant to handle due diligence for large investments.
Step 5: Make an Offer and Sign the MOU (Memorandum of Understanding)
Once you finalize the property:
- Make a written offer through your broker
- Sign an MOU outlining sale terms and deposit amount (typically 10%)
- Deposit is held in escrow until final transfer
Step 6: Get a No Objection Certificate (NOC)
For properties in buildings managed by developers or owners' associations, the seller must request a No Objection Certificate (NOC). This confirms:
- There are no pending dues
- The buyer is eligible to take over the property
- Maintenance and service charges are cleared
Step 7: Transfer Ownership at the Dubai Land Department (DLD)
After the NOC is received, the final sale happens at the DLD office.
Documents Required:
- Buyer and seller’s original IDs and passports
- MOU
- Title deed
- NOC
- Manager’s cheque for the final payment
DLD Charges:
- 4% of the property value as a transfer fee
- AED 580 admin fee for commercial property
- Agent commission (typically 2%)
Once completed, you'll receive a new title deed in your name or company name.
Step 8: Register the Property Under Your Trade License (if applicable)
If you’re buying under a company, you’ll need to update your trade license with Dubai Economy or the respective free zone. You can then start operations, lease the property, or hold it for investment.
Documents Needed for Foreign Buyers
- Valid passport
- Visa (if applicable)
- Emirates ID (if resident)
- Company license (if buying under business name)
- Proof of funds (bank statement or approval)
Key Tips for Buying Commercial Property in Dubai
- Always verify property zoning (commercial, industrial, mixed-use)
- Look at rental demand and ROI in that area
- Work with a registered agent and legal advisor
- Account for hidden costs like service charges, insurance, and fit-out expenses
- Review lease potential if you plan to rent it out
Final Thoughts
Buying commercial property in Dubai is a smart move — whether for expanding your business or earning rental income. With a clear process, legal protections, and options for foreign ownership, Dubai stands out as one of the most investor-friendly markets in the region.
From high-rise offices in DIFC to retail shops in Deira or warehouses in Al Quoz, there’s a commercial property to match every budget and business goal.
