High-Return Commercial Property Opportunities in Dubai

 

Dubai has been one of the top choices of global investors looking to invest in commercial properties. In the current real estate scenario, the property market is demonstrating economic stability and growth, whereas other countries are facing financial challenges. Dubai's real estate sector, however, is showing strong positive signs towards a promising high return on investment. Thanks to the strategic location and its tax-free environment for foreign investors. This guide provides an overview of high-return commercial property opportunities in Dubai for those embarking on their investment journey. On this page, you will also learn about the types of commercial properties where you can invest and some additional tips that help you in decision-making. 

 

Best Places To Find High-Return Commercial Properties in Dubai

 

Dubai Silicon Oasis (DSO): DSO in Dubai is emerging as one of the hubs for multinational companies, and many are viewing it as the next Silicon Valley of Dubai. It can be an ideal place to invest in commercial spaces as the ROI incentives are high. Amenities and facilities are also well-balanced and easily accessible. DSO has experienced significant growth in demand for commercial and residential properties from foreign investors. Undoubtedly, an investment in the commercial space in DSO can be a good investment and yield promising returns in the future. 
 

• For the purchase of office spaces, the cost begins at AED 700 per square foot. 
   
• The average transaction price is nearly AED 670K. 
   
• You can expect a yearly return on investment of up to 11%. 

Jumeirah Lake Towers (JLT): Several commercial opportunities can be found in JLT, Dubai, as it features clusters of towers where thousands of residential and commercial spaces are already occupied, and thousands remain vacant at competitive rental and purchase rates. You can consider this city a prime location for commercial property investment, as it offers 100% foreign ownership and tax incentives.
 

• JLT reports a nearly 30% annual increase in commercial property values.
   
• The cost of office spaces starts below AED 1.5K
   
• The average transaction price is nearly AED 1 M.
   
• Average return on investment can be estimated at up to 7.5% annually. 

Business Bay: You can view it as the business district of Dubai, offering modern infrastructure and a strategic location that adds value to your business needs and property costs. It is also near Downtown Dubai and Dubai International Financial Centre (DIFC), one of the great reasons to invest. Recent reports indicate an approximately 20% increase in cost appreciation and average rental yields of around 7%. 
 

• The average per-square-foot rate for commercial properties starts at AED 1.6 K.
   
• Shops are available at a minimum price of AED 1.8K.
   
• On current market returns, you can achieve an ROI of up to 7% on offices and approximately 9% on shops. 

Commercial Property Types To Invest in Dubai

Office Spaces: If you are looking for office spaces in Dubai, you can find a range of options available at strategic locations with promising rental yields. The office spaces offer a choice between furnished and unfurnished options. You can also find co-working spaces in the property market at a budget-friendly cost.
 

• Commercial office space can cost anywhere from AED 900 to AED 10 million for rental, and the purchase cost begins at AED 200,000.
   
• Currently, fully or semi-furnished office spaces are available at a starting cost of AED 290,000.
   
• If you opt for co-working spaces, you can expect to pay a significantly lower price. 
   
• The ROI can range from 6% to 9% annually. 

Retail Unit: Several retail spaces are available for independent small businesses, including gyms, spas, and shops, for rent or sale. 
 

• Rent of retail units starts from AED 10,000 and can reach millions at luxurious locations.
   
• For the purchase of a retail unit, the initial investment cost can exceed AED 250,000.
   
• The ROI of retail units can vary between 5% to 10% yearly.

Warehouses and Industrial Units: Whether you are looking for a warehouse or an industrial unit, several locations in Dubai are perfect for your business needs, including dark stores, commercial storage, and manufacturing processes, as well as logistics, all of which offer easy transportation.
 

• The rental cost varies depending on the size of the warehouse and industrial unit.
   
• Generally, the cost of rent starts from AED 7K for warehouses and industrial units.
   
• For sale & Purchase, the estimated cost can begin from AED 1 million.
   
• The yearly Return on Investment for the rent or purchase of warehouses and other properties can be over 7%.

Hotel & Hospitality Properties: For hotels and hospitality commercial properties, one of the key factors is their location. Dubai boasts multiple premium and luxurious commercial spaces, which are ideal for hotels and hospitality businesses, and are conveniently located near Dubai's Attractions.
 

• To rent such commercial properties, you need to have a minimum budget of AED 100,000.
   
• For renting a whole building, the cost starts at AED 700,000.
   
• For purchase, the amount can be in Millions. 

Tips to consider before investing in Commercial properties in Dubai
 

• Location: You must choose the location of your property wisely, as it determines its rental and purchase value due to demand. 
   
• Legal Framework: Understand the legal framework for renting and purchasing property, including the specific regulations and documentation associated with each type of space.
   
• Market Analysis: Research the current real estate market trends and assess the risk factors associated with commercial property investment.
   
• ROI Calculation: Calculate the return on investment for the commercial property you wish to rent or purchase.
   
• Real Estate Agent: Consult with a reliable or experienced real estate agent who deals in commercial properties in Dubai. Take their guidance or assistance to finalise the best property for you. 

Conclusion

Whether you are looking to expand your business or wish to invest in commercial properties to start something new, Dubai offers a range of opportunities for rent and sale, with a promising high return on both short-term and long-term investments. This page covers some of the most popular high-return commercial properties in Dubai, which you can consider, including tips to help you make a practical investment decision. You can explore different types of commercial properties available for rent and purchase, and consult with an authorised real estate advisor before investing.