Is it possible for foreigners to buy commercial property in Dubai? There are few countries in the world as extravagant as Dubai. Tourists flock to the city for its magnificent infrastructure and tourist appeal.
The Dubai skyline, the Burj Khalifa, and many other iconic structures add stars to the Dubai skyline. This semi-arid Arab land has also been transformed into a concrete marvel due to advances in infrastructure. Many iconic and signature buildings add to this state’s lust and luck. In addition to this, nearby cities like Sharjah, Bahrain, Kuwait, Oman, etc., offer surplus employment opportunities. Dubai’s appreciating value in the market attracts people who invest millions and billions in property. People worldwide, including celebrities, athletes, and politicians, invest in Dubai real estate as it becomes vaster and vaster.
This article will explain how expatriates can buy commercial properties in Dubai and what properties are available.
Commercial Property Buying Policies for Foreigners in Dubai
Is it possible for someone to purchase property in a country they do not live in? Each country’s foreign and internal affairs policies answer this question. A foreign national can buy property in Dubai, but specific rules and regulations exist. Here are the laws one must follow when purchasing property in Dubai:
Non-residents can purchase freehold property in Dubai.
Dubai has specific restrictions on where these properties can be purchased.
Foreigners can only buy properties in these areas in Dubai:
- Dubai Marina
- Downtown Dubai Jumeirah
- Village Circle (JVC)
- Arabian Ranches
- Dubai land
- Palm Jumeirah
Buying and selling properties in these areas is permitted on a freehold basis. There are, however, too high prices for properties in these prime locations for foreigners to afford.
Properties in Dubai can be purchased by foreign nationals in the following categories:
- Hotel apartments
- Villas and Townhouses
Dubai Commercial Properties for Foreigners
Many financing and industry options are available in the Dubai commercial real estate market, from fully furnished offices to specially designed factories. The following is a comprehensive guide to properties in Dubai’s many economic sectors. As a result, you can allocate your funds more effectively to the regions most likely to grow your business. You can also estimate how much renting or acquiring these units will cost.
Let’s look at what kind of properties foreigners can buy in Dubai.
Business opportunities abound in Dubai, an industrial hub. It is home to many new, growing companies and influential industries. Foreigners can also rent or buy office spaces in Dubai. It is possible to rent or purchase furnished or unfurnished spaces. But if you wish to buy an office space and run your own company there, it’s also a good idea. Hire a personal driver that takes you to your office daily. All newly constructed spaces, however, are furnished to a basic standard.
There are several prime locations where these office locations can be purchased, including Business Bay, Jumeirah Lake Towers, Sheikh Zayed Road, Deira, and Bur Dubai. The average selling price for a 25-35 square foot office space in Dubai is $68,100. Mt. area. It is important to note, however, that the prices can vary depending on the size of the rented space.
Coworking spaces have become popular among businesses and startups in recent years due to a growing number of companies and startups. The cost of building offices and purchasing office furniture is minimal in coworking spaces.
Freelancers are also attracted to coworking spaces because they get more opportunities to network and make good contacts. With these spaces, you can create a workplace that feels more corporate and comfortable for employees. Due to the joint payment, the space rent will also be lower. For the use of the properties, hourly, daily, and monthly fees may apply. Dubai also has several well-known coworking spaces, including Nest, Bureau Dubai, Nook, and Our Space. A company can be purchased to operate one of the existing locations, or an office can be customized to your specifications. Among other things, they serve as a treatment and spa facility, hold specialized lectures and seminars, and serve as a place to hold authorized business services.
These properties usually cost between $2800 and $19,000, depending on the size and location of the office. In addition, the price may be affected by the neighboring offices of the coworking space. The cost of such a coworking space may be higher if you want to sit among prominent industrialists.
Investing in retail spaces is another excellent infrastructure investment from Dubai’s perspective. Investing in commercial properties in Dubai ensures maximum returns. To start your own business, you’ll need a lavish space. Whenever you open a retail store in Dubai, you must ensure it is located in an area that sees maximum foot traffic and attracts shoppers. A retail unit or shop in Dubai can be a very profitable investment. You can purchase this type of commercial real estate in any area or community of the emirate, and both secondary and off-plan properties are available.
There are several prime locations in Dubai where you can purchase these retail stores and shops, such as Jumeirah Lake Towers, Business Bay, International City, Dubai Marina, Meydan, DIFC, Downtown Dubai, and Dubai Silicon Oasis. A wide range of sizes is available, from 344 square feet to 9,945 square feet. Units are available for sale starting at AED 150,000 (USD 41,000). Apart from the areas mentioned earlier, Al Barsha, Deira, Jumeirah, and Bur Dubai also provide rental options ranging from 99 to 37,996 square feet. Prices range annually from AED 15,000 (USD 4,100) to AED 4,000,000 (USD 1,090,000).
Nevertheless, these areas are highly coveted and pre-booked. Early-bird prices may be offered even before construction starts. The footfall in these areas is high and in high demand. Due to the rent or lease amount, the prices of the products you sell here must also be higher. Besides these three types of properties, there are many other types of commercial properties in Dubai that non-residents can invest in or expand their businesses. The types of properties include showrooms, commercial buildings, villas, lands, plots, warehouses, factories, and labor camps.
Things to Remember
Before purchasing commercial properties in Dubai, a person should consider several things.
First of all, Dubai’s real estate is highly sought after. It is not always possible for the landlord to maintain a fixed rent. You should brace yourself for any increases in the rent amount if you have rented a commercial space in Dubai.
Secondly, commercial properties in Dubai offer a good return on investment. If you buy a good property, chances are you will profit 4-8% per year. Profit is determined by the value of the land plus the rent you will charge the tenant. For this reason, many foreigners are interested in buying commercial properties in Dubai. Your investment in commercial properties in Dubai will not go to waste if you keep these points in mind, and you can earn a good income from the property. Rent or lease it, or use it for your own needs. In either case, you are in the black.
Foreigner Benefits of Buying Commercial Property in Dubai
There is no harm in buying a property anywhere. Investing in real estate with a surplus of money and a good capital base is necessary. You can earn a steady income from this. Additionally, you can use the property at any time for your purposes.
Commercial properties in Dubai have the following benefits:
Having a spare place to visit another country is especially beneficial for foreigners. You can rent out your house or hotel apartment for a couple of years if you have bought it. Following the completion of the period, you can use the property as a vacation home. Is there anything better than having a vacation home in Dubai?
Additionally, it can be a good source of income for foreigners and lead to future citizenship in Dubai. As a result, you can either sell your property for a higher price with a high-profit margin or keep it for yourself. As a result of these benefits, foreigners can benefit greatly from buying commercial properties in Dubai.