Buying an office in Dubai

Own use or investment?

Owner-occupiers want certainty: no landlord renewals, control over fit-out and a business address that cannot be taken away at lease end. They also tie up capital and take on maintenance and service charges. Investors are buying an income stream, and the quality of the tenant and lease matters as much as the building.

Be clear which you are, because it changes what you look for. If you are an occupier weighing whether to buy at all, compare against renting an office in Dubai.

How the purchase works

A resale office purchase follows the same structure as a residential one: you agree terms on Form F, the seller obtains the developer NOC, and the transfer completes at a DLD trustee office where the new title deed is issued. The DLD transfer fee is 4% of the purchase price, customarily paid by the buyer, plus admin and trustee fees; confirm the current schedule with DLD.

Off-plan commercial units are also sold, with payments into regulated escrow accounts. Verify the developer and project on Dubai REST. For the general framework, see how to buy property in Dubai and Form F MOU explained.

Due diligence that is specific to offices

• Permitted use. Confirm the unit is designated for office use and that your intended activity, or a tenant's, is allowed in the building. Some activities need special approvals.
• Service charges. Commercial buildings can carry significant service charges. Get the current Mollak figure and the building's budget, and ask what it covers. See understanding service charge budgets.
• Chiller and utilities. Find out whether cooling is billed separately and how.
• Fit-out condition. Shell and core or fitted? Who owns the fit-out, and would a new occupier want it?
• Parking. Allocated spaces matter more for offices than many buyers expect.
• Building management. Lift performance, access control, cleanliness and maintenance standards affect lettability.

Buying a tenanted office

If the unit is let, you take over the lease. Read the tenancy contract and Ejari, check the rent payment history, the expiry date, break options and reinstatement clauses. Ask how long the tenant has been there and whether they are likely to renew.

The tenant's business strength matters. A unit let to a stable company is a different proposition from one let on a short term to a new start-up. Factor in the cost and time of re-letting if the tenant leaves.

Financing a commercial purchase

Some UAE banks lend on commercial property, but terms, eligibility and the documents required usually differ from residential mortgages. Businesses may be asked for company financial statements and licences. Speak to lenders before you agree a price, and ask whether the loan is to you personally or to your company. See mortgage pre-approval in Dubai for the general approach to pre-approval.

Owning in a company name

Some buyers want to hold the office through a company. Whether that is possible depends on the company type and where it is registered, as DLD and some free zones have specific rules on corporate ownership. Take advice from a qualified lawyer and accountant, and confirm the current position with DLD before you agree terms.

Letting and managing the office

Commercial lettings in Dubai's mainland are registered on Ejari, and renewal increases follow the rental index rules; landlords must still give at least 90 days' notice before expiry to change terms. See commercial Ejari explained. Plan for vacancy and fit-out contributions in your numbers, and keep the unit compliant with building rules.