Commercial real estate in Dubai

Dubai is a hub for worldwide business and trade, attracting both companies and innovators from around the globe. Besides providing a welcoming environment for entrepreneurs, the city offers a diverse selection of commercial properties tailored to accommodate various business requirements. 

Within the commercial real estate sector, Dubai experienced a notable expansion in sales transactions. In 2022, the office occupancy rates in Dubai reached 88%, marking an increase from the previous year's rate of 79%.

What are the main types of commercial real estate in Dubai? 

Here are the top three types of commercial real estate in Dubai:

• Offices

• Retail sector

• Storage & Logistics facilities

Let's now delve into each of these aspects in more detail.

Offices in Dubai

What are the best offices in Dubai?

A serviced office is a fully furnished and equipped office space, managed by a third-party provider. It is the preferred choice among office types primarily due to its low investment requirement. Additionally, business owners benefit from the assistance provided by most serviced office operators in setting up their company and acquiring a trade license.

On the other hand, shell and core offices are office spaces with the basic "shell" structure provided by the developer. They are unfurnished and refer to the first phase of a commercial project. The occupancy is relatively low because most of the offered offices are quite large and expensive. 

Moreover, traditional office spaces cater to local businesses and are less likely to adapt their spaces to accommodate smaller requirements.On the other hand, serviced offices generally offer a higher level of quality and do not demand significant initial investments. 

What should you take into consideration when looking for office space in Dubai?

For those looking for office space in Dubai, the most important things to take into consideration are: 

• location

• quality

• cost

What is the average office cost in Dubai? 

The average cost of a 200 sq.ft. serviced office suitable for three people varies from Dhs 1,500 to Dhs 6,500 per person per month. The mentioned cost includes various amenities, such as internet access, meeting rooms, AV equipment, parking facilities, reception services, lounges, and kitchen facilities. 

What is the average office size in Dubai? 

As per the Dubai Economic Department, a minimum office size of 200 square feet is mandatory to obtain a new trade license.

Retail sector in Dubai

Retail spaces have long been the most popular type of commercial real estate, particularly because they allow foreigners to launch their own business in the UAE as fast as possible. 

The retail industry in Dubai continues to be a booming one, accounting for 30% of  the UAE's total sales amounting to $71 billion in 2021.

What are the factors contributing to the expansion of the retail sector in Dubai?

Two significant events in the retail industry attract visitors from around the globe: 

• The Dubai shopping festival: During this festival, sales take place over a duration of seven weeks, and approximately 30% of the year’s retail sales are made during this festival. It is so beneficial that Dubai created its summer counterpart called Dubai Summer Surprises, which lasts for 67 days. 

• GITEX Shopper: This event is a technology gathering where you can find a wide range of products, including  televisions, TVs, laptops, digital cameras and even gaming consoles. 

What is the average size and price of shops in Dubai? 

Here is the average size and price of shops in the best areas to buy commercial properties in Dubai:

What sales figures can be anticipated in Dubai's retail sector?

The retail sector in Dubai is expected to reach a sales value of $70.5 billion by the year 2025.

What is the total land area dedicated to the retail sector in Dubai?

In 2020, a total of 110,000 square meters of retail gross leasable space in Dubai was finalized and made available.

Storage and logistics facilities in Dubai

A multitude of companies in Dubai offer storage solutions, including residential relocations and the need for additional storage space for personal belongings.  

There is a wide range of storage and logistics facilities in Dubai: 

• Self-storage solutions 

• Warehouse storage 

• Document storage 

• Temperature-controlled storage 

Self-storage solutions

As the name suggests, self-storage solutions provide both individuals and businesses the flexibility to conveniently store their belongings. It is an ideal option for individuals who need additional storage space for their personal belongings. 

To ensure the safety of stored belongings, self-storage facilities are equipped with surveillance cameras, access control systems and strong security measures. 

In addition to this, self-storage providers offer rental terms ranging from short to long term contracts, providing customers with flexibility and convenience. 

Warehouse storage

Warehouse storage plays a vital role in Dubai’s logistics ecosystem as it allows businesses to efficiently store and handle their inventory in a secure and regulated environment. 

Here are five reasons to invest in a freehold warehouse in Dubai: 

• Flexibility (you won’t be tied into a lease)

• Cost-effective (you don’t pay rent or leasehold charges)

• Control (you own the property) 

• Security of tenure (you can stay in the property for as long as you want)

• Potential for growth (you can always add to your existing property) 

The Different Types of Warehouses in Dubai:

There are 4 types of warehouses available in Dubai, serving different purposes: 

• Ambient warehouses (for storing non-perishable goods)

• Temperature-controlled warehouses (for food and pharmaceutical products) 

• Bonded warehouses (for duty-free storage of goods in transit) 

• Distribution centers (for order fulfillment and last-mile delivery) 

All of them ensure that goods are stored appropriately and ready for distribution or sale.

Document storage

Document storage in Dubai provides a secure and well-structured option for storing crucial documents and records. Strict access controls are used to protect sensitive documents from unauthorized access or damage.

Efficient organization systems, such as indexing and cataloging, are implemented to facilitate the retrieval of specific documents. Additionally, certain document storage facilities offer document destruction services to properly dispose of documents that are no longer required.

Temperature-controlled storage 

Temperature-controlled storage in Dubai provides specialized storage environments where both temperature and humidity are carefully monitored to preserve the quality of delicate items, such as perishable goods, pharmaceuticals, specific chemicals, artwork, electronics, and other temperature-sensitive products.

To sum up

This guide provided valuable information about the most important aspects of commercial real estate in Dubai, including offices, the retail sector, storage facilities, and logistics. While Kredium does not currently offer commercial property, there are plans to introduce these services in the future. Stay updated for any announcements regarding their availability. 

If you are interested in residential real estate in Dubai, our team of experts is ready to assist you in exploring a wide range of options.They will provide guidance throughout the decision-making process and ensure you are well-informed about our services. To receive expert guidance and support, we encourage you to register on our website.

Photo credits:

1. Photo | Unsplash 

2. Photo | Unsplash 

3. Photo | Pexels