Dubai’s commercial property market is on an upswing. According to market research, there is a rise in the demand for quality office space in the city. In the past few years, Dubai's commercial rental market witnessed a surge in office space, leading to an oversupply in the market. This led to a drop in prices and a slowdown of new commercial developments. However, in the last few years, increasing demand has closed the gap. In the current market scenario, demand is starting to outstrip supply, leading to many new commercial properties and a rise in prices.

Dubai is a prime destination for commercial property. The Emirate’s diversified economy, stable government, and strong regulation makes it an enviable place to invest in commercial property. The Government fosters an investment-friendly environment by protecting foreign investors, including no restrictions on repatriation of profits or capital gains. In addition, investors interested in commercial properties can benefit from the city's favorable tax regime. 

VAT when renting commercial property in Dubai

In Dubai, commercial property is classified as retail stores, hotels, offices, warehouses, factories, and land utilized for commercial purposes. Specifically, commercial real estate excludes buildings designated for residential use, properties intended for charitable activities by charitable organizations, and undeveloped land. In the UAE, the supply of commercial real estate, whether through sale or lease, is subject to the standard VAT rate of 5%. Suppliers are required to apply VAT to the total amount received for the supply, which includes any installments. 

Employee visas when you work in Dubai

The UAE offers many different types of visas. An employer may apply for a standard work visa residency visa for a person working in the private sector at GDRFA Dubai. The visa is valid for two years and covers those employed in the government sector or a free zone. The UAE also has the Golden visa – a long-term residence visa which enables expats talents to live, work, or study in the UAE while enjoying exclusive benefits. Investors, entrepreneurs, scientists, outstanding students and graduates, humanitarian pioneers and frontline heroes are among those eligible for the Golden Visa. If you have a business idea and are considering renting commercial space, Wasl has several options to choose from. 

Office types to choose from when renting commercial spaces in  Dubai 

There are several commercial properties to let in Dubai. Choose from warehouses, distribution centres, showrooms, and other spaces. Whether you want to set up a restaurant, retail business or a multi-use facility, there are several options. If you are looking for office type space, Wasl has an extensive portfolio of modern, well-designed office spaces in different parts of the city. You can choose from options in Downtown Dubai and Business Bay or Discovery Gardens and Dubai South. Each of these office spaces can be set up to be contemporary and functional, according to your tastes. Wasl District is a sprawling development that features a vibrant souq, affordable residences, offices, a lavish hotel, and an awe-inspiring museum chronicling Dubai's medical history. Every aspect of this grand project has been meticulously designed to evoke the feeling of traditional Dubai. 

Types of lease agreements to consider when renting commercial property in Dubai

There are several types of commercial lease agreements. A gross lease is a basic type of lease where the tenant pays an agreed rental every month. A land lease is another type of lease and is granted to a tenant to construct a building on a plot of land. A triple-net lease is when a tenant pays the landlord rent for expenses covering maintenance, taxes, etc. Commercial leases in Dubai can run from 1 to 5 years or even longer. Wasl properties cover the full range of property leasing, management, facilities management and Call Centre operations and services for an extensive portfolio of over 30,000 residential and commercial units. Wasl also handles freehold sales and offer Owner’s Association Management services for freehold buildings.

Tips to rent a retail space for commercial purposes

If you plan to rent a retail space, first decide on your budget. Even though online shopping has surged around the world, brick-and-mortar retail in the UAE is still very popular. Choose a location that has good footfall and amenities, including car parking. Wasl District in Old Dubai is a vibrant commercial hub and retail space with a range of shops selling textiles, fashion, spices, carpets, fragrances, gifts, art, and jewelry. It also has supermarkets, telecommunication stores, and restaurants with various dining options. The underground parking is spacious and ideal for F&B businesses. Located in a thriving residential community and near a luxurious hotel, the area receives a considerable amount of foot traffic. 

Tips to rent an office space

The first step when it comes to renting office space is choosing the right location. Being located close to transport links and commercial hubs is ideal. If you have a large team, it is best to consider renting more space. Accessibility also matters, so remember to choose a location that is people-friendly. If you are looking to have a more informal work environment, you may want to consider co-working spaces, but if you have a more regular 9 to 5 set up, then look for more conventional office space.

No matter your needs, Wasl offers an array of high-quality commercial spaces for rent. Depending on your budgets and requirements, you can choose from spacious commercial spaces in popular business districts or warehouses in prime distribution hubs. For more information on renting commercial property in Dubai, get in touch with Wasl.