Dubai has been known as the world’s most famous tourism hub, but the city isn’t all star-studded skyscrapers and glimmering experiences but is also a growing hub for many industries such as tech, real estate, hospitality and more.
Many foreign businesses have been eyeing Dubai for their future business expansions but here’s a common question we get asked - Can foreigners purchase commercial property in Dubai?
Yes, and we’re here to break it down for you!
Let's break it down: non-UAE/GCC nationals can opt for freehold, leasehold of up to 99 years, or usufruct in certain designated areas across Dubai.
**Planning to invest elsewhere? **
Not to worry, foreign investors have many different areas designated based on their licence and The Law Number 7 of 2006 allows foreign individuals to acquire a lease in other parts of Dubai.
The Dubai International Financial Centre (DIFC) is a prominent example where foreign ownership is permitted, making it a hub for international business and financial services.
Foreign investors in Dubai can invest in commercial properties such as:
Offices: Investors can purchase office units all around the city, based on their licence.
Co-working spaces: Investors can invest in co-working spaces, letting out the spaces to other companies, providing them with licences, etc.
Retail stores: This is another great unit that can be used as an investment, as investors can let it out to get maximum return on investment or simply set it up and use it as your own!
Others: Apart from these three types of properties, there are many other types of commercial properties in Dubai that a non-resident of Dubai can purchase for investment or business expansion. These are showrooms, commercial buildings, villas, lands, plots, warehouses, factories, and labour camps.
For most Dubai has been reigning in those returns, but did you know that commercial properties provide multiple benefits such as:
Higher ROI: Compared to residential units, commercial properties offer an ROI of 10-12%.
Higher capital appreciation: Commercial units in Dubai are seen as a wise investment because with an increase in demand and lack of supply, commercial units hold a higher capital appreciation.
Better payment plans: In commercial property sales, companies are offered better payment plans such as 1-2 cheque payments.
Longer term leases: Compared to residential leaves, commercial property leases can go for longer durations.
Residency visa: Commercial unit and residential unit owners can instantly get visas after purchasing property in Dubai.
If you’ve been wondering which area is best suited for you, take a look at our comprehensive guide to the best communities for commercial real estate investments.
If you’re keen to invest in commercial real estate in Dubai or are keen to know more, get in touch with our experts!