Commercial property for sale in Dubai (2026): offices, shops, warehouses, land

Commercial property for sale in Dubai spans strata offices that averaged AED 2,012 per square foot in the first half of 2026, according to Cavendish Maxwell figures reported by Khaleej Times on 6 August 2026, logistics warehouses that JLL values at prime and Grade A yields of 7.25 to 8.25 per cent in its 2026 outlook, and commercial land worth AED 57.2 billion sold from 1 January to 26 October 2026, on Land Department data reported by Gulf Today. Each asset type has its own price, income and lending, so a buyer should choose the type before the building.

This hub guide to commercial real estate in Dubai compares offices, retail, warehouses, whole buildings, hotels and land, and sets out who can own, the costs, how banks lend and a worked example of an office and a warehouse bought with a commercial mortgage. It is not tax or legal advice.

Can foreigners buy commercial property in Dubai?

Yes, in designated areas. Article 4 of Law No. 7 of 2006, issued on 13 March 2006, restricts ownership in Dubai to UAE nationals, GCC nationals, companies fully owned by them and public joint stock companies, and allows non UAE nationals, with the Ruler's approval and in areas the Ruler determines, freehold ownership without time limit or usufruct and leasehold of up to 99 years. Designations are made by area and plot, so the plot's status should be confirmed with the Land Department before signing.

A company can hold the asset. The Land Department's sale registration page, updated on 3 November 2026, says the buying company must first be registered with the Department. Which companies can register title on which plot is Land Department policy, set out in our office guide.

Tenure differs by asset. Most offices and shops are freehold strata units, while many warehouses sit on long ground leases in free zones and industrial parks, as our warehouse guide explains.

What types of commercial property for sale in Dubai are there, and what do they yield?

Six types cover most of the market. Only industrial yields are published by research houses for 2026, so the other figures below are prices and rents, with any yield we calculate labelled as ours.

1. Offices. Cavendish Maxwell put the average sale price at AED 2,012 per square foot and the average rent at AED 189 a year in the first half of 2026, up 15 and 14 per cent in a year, on AED 15.8 billion of sales across 2,600 deals, 65 per cent of them off plan. Savills, measuring a different sample, put the average rent at AED 241 per square foot and stable in the third quarter of 2026. Dividing the Cavendish Maxwell rent by its price gives an indicative gross yield of 9.4 per cent before costs; that is our arithmetic, not a published yield.
2. Retail. Cavendish Maxwell recorded AED 3.8 billion of retail sales across 850 transactions in the first half of 2026, up 177 per cent by value, with an average deal of AED 4.4 million, rents up nearly 4.5 per cent in a year and occupancy of about 98 per cent in flagship malls and community centres, as Khaleej Times reported on 15 September 2026. JLL put Dubai retail vacancy at 4.7 per cent in the second quarter, down from 8 per cent a year earlier. No research house reviewed publishes a 2026 retail yield or an average price per square foot.
3. Warehouses and logistics. JLL's 2026 outlook puts prime and Grade A yields at 7.25 to 8.25 per cent and Grade B at 8.25 to 9.25 per cent across Dubai and Abu Dhabi. ValuStrat put prime industrial yields at 8 to 9 per cent on 22 July 2026, with warehouse values up almost 18 per cent in a year. Knight Frank put rents at AED 90 per square foot for Grade A space in Al Quoz and AED 55 in Dubai South on 29 July 2026.
4. Whole buildings. Residential, office and mixed use buildings trade off market and are priced on their registered rent roll. No research house reviewed publishes a building yield; our guide to buying a whole building in Dubai covers pricing and due diligence.
5. Hotels and hotel apartments. Income depends on trading, not a lease. The Department of Economy and Tourism counted 6.97 million visitors and an average room rate of AED 470 from January to August 2026, as Emirates 247 reported on 2 October 2026. No bank page reviewed publishes hotel lending terms and no research house reviewed publishes a 2026 Dubai hotel yield.
6. Land. Land Department data reported by Gulf Today on 27 October 2026 show 3,225 commercial land deals worth AED 57.2 billion from 1 January to 26 October 2026, 39 per cent of all land sold by value. Land earns nothing until built; our guide to buying a development plot covers permitted use and approvals.

How busy is commercial real estate in Dubai in 2026?

Value has risen faster than the number of deals, which means larger tickets. Cavendish Maxwell's office sales of AED 15.8 billion in the first half of 2026 were almost three times the value a year earlier on 38 per cent more deals, and Business Bay led with 814 sales, ahead of Al Sufouh 1 with 498 and Jumeirah Lakes Towers with 333.

Much of the buying is of future space. Off plan sales made up 65 per cent of office deals and about 60 per cent of retail deals in the first half, on Cavendish Maxwell figures. An off plan unit earns no rent until handover and most published bank products finance completed property.

Leasing is tight but slowing at the margin. JLL put Dubai office vacancy at 6.1 per cent in the second quarter of 2026, down from 7.7 per cent, with Grade A rents up 26.2 per cent in a year. Savills counted 20,200 office leases in the third quarter, down 8 per cent on the second, with 66 per cent of deals below 1,000 square feet. Cavendish Maxwell recorded new warehouse leases down 53.4 per cent in the first quarter of 2026 while renewals rose, and new retail leases down 26 per cent in the first half: existing tenants are staying and paying more, while fewer new ones arrive.

Shop rents vary widely by district. Land Department registered shop leases from 1 January to 22 August 2026, analysed by DXBinteract, show median annual rents of AED 222,651 in Business Bay, AED 260,075 in Dubai Marina and AED 80,000 in Al Karama. These are rents per shop, not per square foot.

What does it cost to buy commercial property 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, a map fee of AED 225, knowledge and innovation fees of AED 10 each, and a service partner fee of AED 4,000 plus VAT where the price is AED 500,000 or more. Who pays the full 4 per cent is negotiated, and buyers often pay it. Our guide to the cost of buying property in Dubai sets out each fee.

VAT is the largest difference from a home. The Federal Tax Authority and the Land Department said on 20 March 2018 that the sale of vacant or off plan commercial property is taxed at 5 per cent, as are commercial leases, while residential buildings and bare land are not taxed on sale or rent. The UAE Government portal's VAT guide lists shops, offices, warehouses, serviced apartments and lets of six months or less as commercial, and says a rented property sold as a going concern to a taxable person carries no VAT. An owner letting commercial property registers, charges 5 per cent on rent and recovers VAT on related costs. Confirm the VAT treatment of a specific purchase with your own tax adviser before signing.

A mortgage adds the Land Department's fee of 0.25 per cent of the loan, AED 250 per title deed and AED 20 in knowledge and innovation fees, and a service partner fee of AED 4,000 plus VAT, according to its page updated on 3 November 2026.

Can you get a mortgage on commercial property in Dubai?

Yes, but not under the home loan rules. The Central Bank's Circular 31/2013 defines a mortgage loan as "a loan that is collateralized against a residential property" and measures loan to value against "the appraised value of the residential property". Its caps do not apply to offices, shops, warehouses, hotels or land, so each bank sets its own loan to value, term, margin and income test.

Few banks publish terms. On their own pages, read on 10 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, with the loan based on the property's future rent, for office buildings, shops, residential and mixed use buildings.
3. Habib Bank AG Zurich publishes up to 75 per cent over up to 15 years, for owner occupied property.
4. Ajman Bank publishes land finance for commercial land at 60 per cent for UAE nationals and 55 per cent for resident expatriates, up to 8 million and 20 years, for residents only.

None publishes a margin over EIBOR, a minimum debt service cover, hotel terms 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 loan 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 3.9 per cent on 28 October 2026, and Al Masraf published three month EIBOR at 4.21 per cent as of 9 November 2026. Our commercial mortgage page lists each bank's published terms.

A worked example: an office and a warehouse at AED 4 million each

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

It compares two ready, let assets at the same price of AED 4 million, with title registered at the Land Department so that the Dubai fees apply. The office is a strata unit of 1,988 square feet priced and let at Cavendish Maxwell's first half 2026 averages of AED 2,012 and AED 189 per square foot, reported on 6 August 2026. The warehouse is a unit of 5,636 square feet in Dubai South let at Knight Frank's rent of AED 55 per square foot (29 July 2026) and priced at 7.75 per cent, the midpoint of JLL's 2026 prime and Grade A range, which is about AED 710 per square foot. 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 as published by Al Masraf for 9 November 2026.

The rest are assumptions, because no source publishes them: for the office, a vacancy and collection allowance of 5 per cent, service charges of AED 20 per square foot and other costs of AED 10,000 a year; for the warehouse, a vacancy allowance of 4 per cent and costs not recovered from the tenant of 4 per cent of rent; for both, a bank margin of 2 per cent over three month EIBOR, giving 6.21 per cent, a 15 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. Figures are rounded to the nearest thousand dirhams.

1. Price: AED 4,000,000 for each asset.
2. Rent: the office earns AED 376,000 a year, an indicative gross yield of 9.4 per cent; the warehouse earns AED 310,000, a gross yield of 7.75 per cent.
3. Net operating income: the office's rent less AED 19,000 of vacancy allowance, AED 40,000 of service charges and AED 10,000 of other costs is AED 307,000, 7.7 per cent of the price; the warehouse's rent less AED 12,000 of vacancy allowance and AED 12,000 of costs is AED 285,000, 7.1 per cent.
4. Maximum loan by loan to value: 60 per cent of the price is AED 2,400,000 for each.
5. Maximum loan by debt service cover: the office's income supports AED 2,494,000 at 6.21 per cent over 15 years; the warehouse's supports AED 2,316,000.
6. The lower of the two: AED 2,400,000 for the office, where loan to value binds, and AED 2,316,000 for the warehouse, 58 per cent of the price, where the income test binds.
7. Monthly repayment: about AED 21,000 for the office, AED 246,000 a year, giving a cover of 1.25; about AED 20,000 for the warehouse, AED 238,000 a year, a cover of exactly 1.20.
8. Cash needed at purchase: for the office, a down payment of AED 1,600,000, the 4 per cent transfer fee of AED 160,000, title deed, map, knowledge, innovation and trustee fees of AED 5,000, mortgage registration at 0.25 per cent plus AED 270 of AED 6,000 and VAT at 5 per cent of AED 200,000, a total of AED 1,971,000; for the warehouse, a down payment of AED 1,684,000 and the same other lines, a total of AED 2,055,000.
9. Cash on cash return: the office leaves AED 61,000 a year after repayments, 3.1 per cent of the cash; the warehouse leaves AED 48,000, 2.3 per cent. Without VAT, as in a going concern sale to a registered buyer, the cash falls by AED 200,000 and the returns rise to 3.4 and 2.6 per cent.

Bought for cash, the office yields 7.0 per cent and the warehouse 6.5 per cent on the price plus fees and VAT, so debt lowers the first year cash return on both; about AED 100,000 of the office's first year repayments and AED 97,000 of the warehouse's repay principal. A rate 2 points higher cuts cover to 1.10 on the office and 1.06 on the warehouse, below the assumed minimum, so the loan would shrink. Bank arrangement and valuation fees are unpublished and left out.

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

What are the risks of commercial property investment in Dubai?

Supply is the first. Savills counted 20.4 million square feet of office space due from 2026 to 2030, and much of the office and retail buying in 2026 is off plan, so today's rents should not be projected forward unchanged.

Income is concentrated. A strata office, a shop or a single let warehouse has one tenant, and one vacancy removes all the rent while service charges and the loan remain.

Rates move. The Central Bank held its Base Rate at 3.9 per cent on 28 October 2026, and a variable commercial loan follows EIBOR, so a rise in rates raises repayments and lowers cover.

A ground lease shortens every year, and 5 per cent VAT applies unless the sale qualifies as a going concern.

What it means for investors

The 2026 data support commercial property investment in Dubai, with discipline on type and price. Office vacancy of 6.1 per cent on JLL figures, retail vacancy of 4.7 per cent and logistics yields of 7.25 to 9 per cent from JLL and ValuStrat point to occupied space and income, while the volume of off plan buying points to supply ahead.

At today's rates, debt buys size rather than first year income. In the worked example a 60 per cent loan cuts the cash return from about 7 per cent to about 3 per cent on the office and 2 per cent on the warehouse, because repayments include principal. A buyer who wants income from the start should consider a longer term, a smaller loan or cash, and get each bank's cover test in writing.

For a buyer in the Americas paying in US dollars, the dirham is pegged at AED 3.6725 to the dollar, so there is no currency risk between a dollar balance sheet and a dirham price or rent; at that rate each AED 4 million asset in the example costs about USD 1.09 million. None of the bank pages read on 10 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 UAE commercial property personally or through a company has reporting consequences in the United States, Canada and Latin America; confirm them with an adviser in your country. Our US investors page collects the related guides.

What we recommend

1. Choose the asset type first, from the comparison above, by the income you need, the time you can wait for it and the tenant risk you can carry.
2. Price the asset from registered sales and leases in the same building or area, and use one research series as the market check.
3. Decide the holding vehicle and confirm with the Land Department that it can register title on that plot, and check the tenure. 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 at least two banks 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, shops, warehouses, whole buildings, hotels and land through its commercial desk, and its mortgage team takes the loan to the banks that lend on each type.