Commercial property for sale in Dubai: what foreign investors can buy

Foreign investors can buy commercial property for sale in Dubai, including offices, shops and other business units, as long as the property sits in a designated freehold area. Offices are the most actively traded type: according to Cavendish Maxwell, Dubai offices sold for an average of about AED 2,000 per square foot in the first half of 2026, which is roughly €500 per square foot.

Commercial property works differently from a flat, though. VAT applies to the purchase, your tenant must hold a trade licence, mortgages are harder to get, and empty periods between tenants tend to last longer. This guide explains what you can buy, what it costs, and how the rules differ from residential property, as of October 2026.

What foreign investors can buy

Dubai's property registration law, Law No. 7 of 2006, allows non-UAE nationals to own property outright in areas designated for freehold ownership. The same freehold zones that allow foreigners to buy homes generally allow commercial ownership too. Outside them, foreign ownership is limited to long leasehold or other restricted rights.

The main commercial types open to individual overseas buyers are:

• Offices. Usually sold as individual strata units within a tower, from small suites to full floors. Business Bay is the largest market.
• Retail units. Shops on the ground floor of residential or mixed-use towers and in community centres. Income depends heavily on footfall and the tenant's trade.
• Hotel apartments. Units in a licensed hotel-apartment building, run by an operator. These have their own rules, covered in our guide to hotel apartments in Dubai.
• Warehouses and industrial units. Available, but often in free zones or industrial areas with different ownership structures. This is specialist territory; take legal advice before considering it.

Sources disagree on whether an individual needs a trade licence simply to buy a commercial unit, as opposed to using one. Ask the broker and the Dubai Land Department trustee to confirm the position for your unit before you pay a booking deposit. Our guide on whether foreigners can buy property in Dubai covers freehold rules in general.

How much does commercial property cost in Dubai

Offices are the only commercial category with regular, reliable published data. Cavendish Maxwell's figures for the first half of 2026, as reported by Khaleej Times, give a clear picture:

The off-plan average is pulled up by a wave of very large deals: more than 220 transactions above AED 20 million in the half year. Half of all off-plan office deals were under 1,000 square feet, so smaller units are very much available. At the average price per square foot, a 1,000 sq ft office would cost about AED 2 million (around €494,000), though prices vary widely by building and district.

Business Bay led with 814 office transactions, followed by Al Sufouh 1, Jumeirah Lakes Towers, Dubai Maritime City and Barsha Heights. Together those five areas made up over 70% of deals.

We found no comparable regular published figures for retail units. Prices depend on frontage, footfall and the lease attached, so value each one on its own rent.

Commercial property in Dubai versus residential

The VAT point is the one most overseas buyers miss. A AED 2,000,000 office carries AED 100,000 of VAT on top of the price and the 4% Dubai Land Department fee, unless the price is quoted VAT-inclusive. A VAT-registered buyer may be able to recover it. Ask the developer how the price is quoted.

Licensing, Ejari and who can rent from you

Every commercial tenancy in Dubai must be registered through Ejari, the tenancy registration system of the Real Estate Regulatory Agency. A mainland business needs a registered Ejari contract to obtain or renew its trade licence, and the utility provider will not connect a commercial unit without one. In practice, that means your tenant must be a licensed company, and you or your property manager must register each new lease.

If you want to use the office yourself, you will need your own trade licence from the Department of Economy and Tourism or a free-zone authority. Free zones such as DMCC or DIFC have their own workspace registration systems tied to the zone licence, so check which regime the building falls under.

Tax on commercial property income

There are two layers to think about.

In the UAE. Under Cabinet Decision No. 49 of 2023, income an individual earns from real estate investment that does not require a licence is generally outside UAE corporate tax. Commercial rent, however, is subject to 5% VAT, and a landlord whose taxable supplies pass the registration threshold must register with the Federal Tax Authority, charge VAT and file returns. The rules for non-resident landlords are not described consistently by advisers, so take advice from a UAE tax specialist before you sign a lease.

At home. Your home country may tax the rent and any gain on sale. Our guide to Dubai property tax for UK and EU residents explains the general position. Get advice for your own situation.

The 2026 office market in brief

Demand for offices has been strong, but 2026 brought the first signs of balance. Savills reported average office rents flat at AED 238 per sq ft in the second quarter of 2026, the first quarter without rental growth since the first half of 2021. Cavendish Maxwell recorded almost 36% fewer office transactions in the second quarter than in the first.

Supply is also rising. Savills expects about 1.9 million sq ft of new office space in 2026 and a pipeline of more than 4.2 million sq ft by 2030. More supply gives tenants more choice, which tends to slow rent growth.

Commercial yields are usually quoted higher than residential ones, partly to compensate for VAT admin, longer voids and fit-out costs. Brokers' estimates vary widely, and there is no official yield index for strata offices. Model your own figures in our rental yield calculator, using a realistic empty period between tenants.

The commercial option on our list

DAMAC District is the one launch on our site that includes offices. It mixes apartments and offices inside the 42 million sq ft DAMAC Hills community, next to Trump International Golf Club, with handover due in Q3 2029. The project entry price is AED 808,000 (about €200,000) and the plan is 60/40 with 1% monthly instalments: 20% on booking, 1% a month for 40 months, and 40% at handover.

That entry price is the project's lowest published price, not an office price. Ask the broker for office sizes, prices and whether VAT is included before comparing it with Business Bay stock. DAMAC Hills is a residential master community rather than a business district, so the likely tenants are smaller local businesses and residents who want a workspace near home rather than large corporate occupiers.

DAMAC Hills

DAMAC District

From AED 808,000 ≈ €200k

Q3 2029

Studio – 2 BR · 60/40 with 1% monthly instalments

Our detailed guide to buying an office in Dubai walks through the process step by step. If you would rather compare with a residential investment at a similar entry price, DAMAC Riverside Views starts from AED 795,000.

Risks to weigh before buying

• Longer voids. A business tenant takes longer to find than a residential one, and fit-out work can delay the first rent.
• Tenant risk. If a small business fails, rent stops. Check the tenant's licence and accounts before signing.
• VAT and admin. VAT on the purchase and on rent adds cost and paperwork.
• Financing. Fewer banks lend on commercial units to non-residents. Plan to buy mostly in cash.
• Supply. The office pipeline is growing towards 2030.
• Currency. The dirham is pegged to the US dollar, so euro and pound buyers carry exchange-rate risk.

To compare commercial yields with residential, see our guide to Dubai rental yields. If you would like a licensed broker to send current office availability at DAMAC District, use the shortlist form.