Office for sale in Dubai (2026): buying, prices, rents and financing an office

An office for sale in Dubai cost an average of AED 2,012 per square foot in the first half of 2026, up 15 per cent in a year, and rented for AED 189 per square foot a year, according to Cavendish Maxwell figures reported by Khaleej Times on 6 August 2026. Office sales reached AED 15.8 billion across 2,600 transactions in those six months, almost three times the value a year earlier, and Business Bay was the busiest district.

This guide is for investors and companies who want to buy an office in Dubai, from a single strata unit to a whole building. It covers who can own, prices and rents from named research, Grade A supply, costs, how banks lend, a worked example of a leased Business Bay office bought with a commercial mortgage, and the risks. It is not tax or legal advice.

Who can buy an office in Dubai, and where?

Article 4 of Law No. 7 of 2006 restricts ownership in Dubai to UAE nationals, as Al Tamimi and Company summarised it in 2015, with an exception for non UAE nationals in areas the Ruler designates. Regulation No. 3 of 2006, issued on 7 June 2006, listed the first designated areas by area and plot, including Dubai Marina, Jebel Ali, Al Jaddaf, Sofouh and two plots on Sheikh Zayed Road. Business Bay is not named in the regulation as published, but law firm guidance published by Chambers on 6 April 2020 lists Business Bay, Downtown Dubai and Jumeirah Lake Towers among the designated areas. Because designations are made by plot, confirm the plot's status with the Land Department before you sign.

A company can hold the office. Al Tamimi and Company wrote in June and July 2015 that an onshore Dubai company or a Dubai free zone company may own in designated areas whatever its shareholders' nationality, as may JAFZA and DMCC offshore companies, while Cayman Islands or British Virgin Islands companies may not buy. It said a DIFC company could own directly only inside the DIFC, needing Land Department approval elsewhere, and described the policy as unpublished and liable to change. The Land Department's sale registration page, updated on 3 November 2026, says a buying company must first register with the Department.

The DIFC runs its own register. The DIFC Real Property Law, DIFC Law No. 10 of 2018, consolidated in May 2026, creates a Registrar of Real Property, gives a transfer effect only once registered, and treats registration as conclusive evidence of title. Its fees are set by DIFC regulations, not the Land Department schedule, so ask the Registrar before you budget.

What does an office for sale in Dubai cost, and how does Business Bay compare?

Cavendish Maxwell put the average sale price at AED 2,029 per square foot in the first quarter of 2026, up 22.9 per cent in a year, and the average rent at AED 191.9, up 20 per cent. Its first half figures of AED 2,012 and AED 189 reflect a slight easing in the second quarter, mainly in ready offices. Prime districts trade far higher: Knight Frank put the average Downtown Dubai office price at AED 5,130 per square foot in 2025, up 29 per cent, and counted 167 office deals above AED 10 million, as Khaleej Times reported on 15 April 2026.

The research houses disagree on the rent level because they measure different samples. Savills put the average Dubai office rent at AED 238 per square foot in the first quarter of 2026 and AED 241, described as stable, in the third quarter, against Cavendish Maxwell's AED 189 for the first half. Compare a building against one series, not a mix.

Business Bay is now the most traded district. Cavendish Maxwell recorded 814 Business Bay office sales in the first half of 2026, ahead of Al Sufouh 1 with 498, Jumeirah Lakes Towers with 333, Dubai Maritime City with 88 and Barsha Heights with 82. Its first quarter report put Business Bay rent growth at 21.6 per cent in a year, against 28.2 per cent in DIFC, 27.0 per cent in Downtown Dubai, 21.1 per cent in Jumeirah Lakes Towers and under 3 per cent in Deira, Bur Dubai and Dubai Healthcare City.

None of the reports reviewed for this guide, from Cavendish Maxwell, CBRE, JLL, Knight Frank or Savills, published an average Business Bay sale price or rent per square foot for 2026, and none published a Dubai office yield. Dividing the citywide first half rent of AED 189 by the price of AED 2,012 gives an indicative gross yield of 9.4 per cent before costs; that is our arithmetic, not a published yield. A Business Bay unit should be priced from Land Department records of sales in the same tower and its registered lease. Size matters too: offices of 1,000 to 2,000 square feet made up 53 per cent of ready sales in the first half, on Cavendish Maxwell data.

How much Grade A office space is there in Dubai, and how full is it?

Grade A space is close to full. JLL put Dubai Grade A vacancy at 4.2 per cent in the second quarter of 2026, overall vacancy at 6.1 per cent, down from 7.7 per cent a year earlier, and prime availability at 0.7 per cent, with Grade A rents up 26.2 per cent in a year, as Khaleej Times reported on 30 August 2026. CBRE put Dubai office occupancy near 94 per cent in the second quarter, as Arab News reported on 28 July 2026, and above 95 per cent in prime central buildings in February 2026.

Supply rises from 2027. Cavendish Maxwell counted stock of 9.46 million square metres in mid 2026, with about 150,000 square metres due by the end of 2026, 379,000 in 2027 and 718,000 in 2028. Knight Frank counted about 24.2 million square feet due from 2026 to 2030, concentrated in Business Bay, Meydan City, Jumeirah Lakes Towers and DIFC, and Savills expected about 2 million square feet in 2026 and 1.6 million in 2027. The houses count different buildings, but all point to more space from 2027.

Much of today's buying is of that future space. Cavendish Maxwell said 65 per cent of office sales in the first half of 2026 were off plan, and an off plan office earns no rent until handover.

Strata office, full floor or whole building: which should you buy?

A strata office is a unit in a jointly owned building. The owner holds title to the unit and a share of the common parts, pays service charges through the owners association and has one vote among many. It is the cheapest and most liquid way in, because most sales are of this size.

A full floor can be one title or several strata units bought together. It suits a company that wants its own floor or an investor who wants one larger tenant, but it still sits inside a jointly owned building, so the service charge and the other owners still matter.

A whole building gives control of the asset, its costs and its leases, with no owners association, but it concentrates risk in one roof and trades off market under confidentiality. Our guides to buying a whole building in Dubai and to income property in the UAE for family offices cover those decisions. Financing differs too: ADCB publishes lease rental discounting of up to AED 50 million for office buildings, while its commercial property finance for a unit stops at AED 10 million.

What does it cost to buy an office in Dubai?

The Land Department's sale registration page, updated on 3 November 2026, sets the transfer fee at 2 per cent of the price for the seller and 2 per cent for the buyer, plus a title deed fee of AED 250, knowledge and innovation fees of AED 10 each, and a trustee fee of AED 4,000 plus VAT where the price is AED 500,000 or more. Who pays the whole 4 per cent is negotiated. Our guide to the cost of buying property in Dubai sets out each fee.

VAT is the main difference from a home. The Federal Tax Authority and the Land Department said on 20 March 2018 that commercial property is subject to 5 per cent VAT, while residential buildings and bare land are not taxed on sale or rent. The UAE Government portal's VAT guide says a rented property sold as a going concern to a taxable person carries no VAT, and that an owner letting commercial property registers, charges 5 per cent on rent and recovers VAT on related costs. Whether VAT applies to a purchase is a question for a tax adviser.

A mortgage adds the Land Department's fee of 0.25 per cent of the loan plus AED 250 per title deed and AED 20 in knowledge and innovation fees, and a service partner fee of AED 4,000 plus VAT where one is used, according to its page updated on 3 November 2026. Service charges should be taken from the building's audited budget, not an average.

Can you get a commercial mortgage in Dubai for an office?

Yes, but not under the home loan rules. The Central Bank's Circular 31/2013 defines a mortgage loan as a loan secured on residential property and measures loan to value against "the appraised value of the residential property". Its caps do not apply to an office, so each bank sets its own loan to value, term, margin and cover test.

Few banks publish terms. On pages read on 9 November 2026:

1. Emirates Islamic publishes up to 70 per cent of the property value over up to 15 years, for completed office, retail, industrial and residential complex units in Dubai and Abu Dhabi, under Ijara. Its page body says up to AED 25 million and its page description AED 15 million.
2. ADCB publishes Commercial Property Finance of up to AED 10 million over up to 10 years for self use or business property, and Lease Rental Discounting of up to AED 50 million over up to 15 years, "based on the future rental income".
3. Habib Bank AG Zurich publishes up to 75 per cent over up to 15 years, for owner occupied property only.

None publishes a margin over EIBOR, a minimum debt service cover or terms for non resident borrowers.

Banks size the loan two ways and lend the lower: a loan to value applied to the bank's own valuation, and the loan the net rent can carry at the bank's minimum debt service cover. Net operating income is the rent collected less the costs the owner pays. Debt service cover is net operating income divided by the year's repayments, so a cover of 1.20 means income is 20 per cent above the repayments. Lease rental discounting is a loan sized on, and repaid from, the rent under existing leases.

Rates start from EIBOR. The Central Bank held its Base Rate at 3.90 per cent on 28 October 2026, and its EIBOR page shows three month EIBOR fixed at 4.21 per cent on 6 November 2026. Our commercial mortgage page lists each bank's published terms.

A worked example: a leased office in Business Bay

This is an illustration built from published market data, not a Castilion client transaction.

The office is a ready, let 1,500 square foot unit in Business Bay. Because no research house publishes an absolute Business Bay price or rent, it uses Cavendish Maxwell's citywide first half averages of AED 2,012 per square foot to buy and AED 189 a year to rent, reported on 6 August 2026; a real tower may trade above or below them. Fees are from the Land Department pages updated on 3 November 2026, VAT from the Federal Tax Authority release of 20 March 2018, and three month EIBOR of 4.21 per cent from the Central Bank's fixing of 6 November 2026.

The rest are assumptions, because no source publishes them: a vacancy and collection allowance of 5 per cent, between JLL's Grade A and overall vacancy; service charges of AED 20 per square foot a year; other running costs of AED 10,000 a year; a bank margin of 2 per cent over three month EIBOR, giving 6.21 per cent; a 10 year term; a 60 per cent loan to value, below the 70 per cent Emirates Islamic publishes; a minimum debt service cover of 1.20; and a buyer who pays the whole transfer fee and VAT.

1. Price: 1,500 square feet at AED 2,012 is AED 3,018,000.
2. Rent: 1,500 square feet at AED 189 is AED 284,000 a year, an indicative gross yield of 9.4 per cent.
3. Net operating income: rent less the 5 per cent allowance, AED 30,000 of service charges and AED 10,000 of other costs is AED 229,000 a year, 7.6 per cent of the price.
4. Maximum loan by loan to value: 60 per cent of the price is AED 1,811,000.
5. Maximum loan by debt service cover: AED 229,000 divided by 1.20 allows AED 191,000 a year of repayments, which at 6.21 per cent over 10 years supports AED 1,421,000.
6. The lower of the two: AED 1,421,000, or 47 per cent of the price. The income test sets the loan.
7. Monthly repayment: about AED 16,000, or AED 191,000 a year.
8. Cash needed at purchase: down payment AED 1,597,000; 4 per cent transfer fee AED 121,000; title deed, knowledge, innovation and trustee fees AED 4,000; mortgage registration at 0.25 per cent plus AED 270, AED 4,000; VAT at 5 per cent of the price, AED 151,000; total AED 1,877,000 after rounding.
9. Cash on cash return: AED 229,000 of income less AED 191,000 of repayments leaves AED 38,000 a year, 2.0 per cent of the cash. Without VAT, as in a going concern sale to a registered buyer, the cash falls to AED 1,726,000 and the return is 2.2 per cent.

Over 10 years the repayments equal 13.4 per cent of the loan a year, above the 7.6 per cent net yield, so debt lowers the first year cash return compared with paying cash, where AED 229,000 on AED 3,294,000 is 7.0 per cent; about AED 106,000 of the first year's repayments is capital that builds equity. Over 15 years the loan to value binds instead: AED 1,811,000, about AED 16,000 a month, cover of 1.23 and a cash on cash return of 2.9 per cent on AED 1,488,000. A rate 2 points higher would cut the 10 year loan's cover to 1.10.

Run your own figures in the commercial loan calculator at /mortgages/commercial.

What are the risks of office investment in Dubai?

Supply is the first. Against completions of about 92,300 square metres in the first half of 2026, Cavendish Maxwell expects 379,000 in 2027 and 718,000 in 2028, and expects rent growth to normalise as supply arrives. A 2026 rent should not be projected forward unchanged.

Rents are flattening on some measures. Savills said on 21 July 2026 that the second quarter was "the first quarter without rental growth since the first half of 2021", with larger occupiers taking longer over decisions amid regional uncertainty. Cavendish Maxwell recorded transactions down almost 36 per cent from the first quarter to the second.

Off plan buyers wait for income and depend on completion, and the Emirates Islamic page describes finance for completed property, so an off plan buyer should plan to pay through the developer's payment plan unless a bank confirms otherwise. Rates move: Trading Economics reported on 16 September 2026 that the Central Bank had raised its Base Rate by 25 basis points to 3.90 per cent, and a variable loan follows EIBOR. A single office is a single tenant: one vacancy removes all the income while the service charge stays payable.

What it means for investors

The 2026 data supports buying offices with discipline on price. Grade A vacancy of 4.2 per cent on JLL figures and prime occupancy above 95 per cent on CBRE figures mean a well located, well run office should let, while the supply due in 2027 and 2028 means it should be valued on today's registered rent.

At today's rates debt buys size rather than yield. In the worked example a 10 year loan lowers the first year cash return from 7.0 to 2.0 per cent, because repayments include capital. A buyer who wants income from day one should look at a longer term, a smaller loan or cash, and get the bank's cover test in writing before agreeing a price.

For a buyer in the Americas paying in US dollars, the dirham is fixed at AED 3.6725 to the US dollar, as Gulf News reported from the Central Bank, so there is no currency risk between a dollar balance sheet and a dirham price or rent. At that rate the example office costs about USD 822,000 and needs about USD 512,000 of cash with the loan. None of the bank pages read on 9 November 2026 published commercial terms for non residents, so ask whether a bank will lend to you directly or only to a UAE company with a personal guarantee. Owning a UAE office personally or through a company has reporting consequences at home in the United States, Canada and Latin America; confirm them with an adviser in your country before choosing the vehicle. Our US investors page collects the related guides.

What we recommend

1. Price the office from registered sales in the same building and its registered lease, and use one research series as the market check.
2. Prefer Grade A, well managed buildings, and read the audited service charge budget before you offer.
3. Decide the holding vehicle first and confirm with the Land Department, or the DIFC Registrar inside the DIFC, that it can register title on that plot. Confirm the current position with the authority before relying on it.
4. Take tax advice on VAT before signing, because a going concern sale and a standard sale cost different amounts.
5. Ask lenders for loan to value, margin, term and minimum cover in writing, and size the loan on the lower of the two tests.

Castilion Estates sources offices, full floors and whole office buildings through its commercial desk, and its mortgage team takes the loan to the banks that lend on offices.