Popular areas to buy commercial property in Dubai
Dubai’s business-friendly infrastructure and policies have established it as a global hub for trade and entrepreneurship. If you’re considering starting a business in Dubai, knowing the best areas for commercial real estate can significantly impact your company’s growth. To assist you in making an informed decision, we have compiled a list of the most popular areas to buy commercial property in Dubai. Let’s explore these options!
COMMERCIAL PROPERTY TRENDS IN DUBAI
Business Bay is one of the sought-after areas to buy commercial property in Dubai. Investors are also inclined towards Jumeirah Lake Towers (JLT), Dubai Silicon Oasis (DSO), International City, Meydan City and Dubai Investment Park (DIP).
As the emirate grows and diversifies its economy, these key areas to buy commercial property in Dubai are poised for significant appreciation and development. Whether you’re looking for high-end office spaces, affordable retail units or industrial warehouse facilities, Dubai’s commercial property market has something to offer every investor.
Remember, the key to successful investment lies in understanding the unique characteristics of each area and aligning them with your investment goals. As always, thorough research and consultation with local real estate experts are recommended before making investment decisions. With careful consideration and strategic planning, investing in Dubai’s commercial real estate market can offer substantial returns and contribute to the growth of your business portfolio.
Without further ado, let’s look closely at the list of neighbourhoods to buy commercial property in Dubai.
Popular Areas to Buy Commercial Property in Dubai: Offices
Those looking for offices for sale in Dubai can consider these areas to buy commercial property in Dubai.
Business Bay: The Heart of Dubai’s Commercial Pulse
Business Bay has solidified its position as Dubai’s central business district, offering the perfect blend of modern infrastructure and strategic location. This area is a powerhouse of commercial activity, known for its proximity to Downtown Dubai and the Dubai International Financial Centre (DIFC). It boasts state-of-the-art office spaces with panoramic city views, excellent connectivity via Dubai Metro and major highways, and a thriving ecosystem of multinational corporations and startups.
Business owners who travel frequently will find this area conveniently located, a 15-minute drive from the Dubai International Airport. Additionally, Business Bay offers investors various commercial property types for sale, including office spaces, commercial floors and shops.
So, what are the key benefits of buying commercial property in Business Bay? Recent trends show a 21.5% increase in office prices, with rental yields averaging 6.94%. The continued development, including new projects in Business Bay, is expected to drive further growth in property values.
Business Bay’s strategic location and modern amenities make it an ideal choice for businesses looking to establish a strong presence in Dubai’s commercial heart.
- The average price per square foot for offices for sale in Business Bay is AED 1,641, while the average transaction price is AED 2.04M.
- Shops for sale in Business Bay are pricier at AED 1,999 per sq. ft. The average transaction price is AED 2.85M.
- Business Bay offices have an ROI of 6.94%, whereas the shops generate an 8.82% ROI.
Jumeirah Lake Towers (JLT): A Thriving Mixed-Use Community
Jumeirah Lake Towers has evolved into a vibrant, self-contained district that’s particularly attractive for businesses seeking a balance of work and lifestyle amenities.
How does Jumeirah Lake Towers compare to Business Bay in terms of investment potential? The area features a cluster of 80 towers offering diverse commercial spaces, all within the DMCC Free Zone, providing tax incentives and 100% foreign ownership opportunities.
JLT’s excellent metro connectivity and proximity to Dubai Marina and various restaurants, cafes, and retail outlets support an enviable work-life balance.
JLT has seen a 30.7% year-on-year increase in commercial office property values, with a focus on smaller, flexible office spaces under 1,500 sq. ft. This trend aligns perfectly with the evolving needs of modern businesses, making JLT an attractive option for startups and established companies looking for a dynamic business environment.
- The average price per square foot for offices for sale in Jumeirah Lake Towers is AED 1,333. The average transaction price for the said properties stands at AED 1.82M.
- JLT offices for sale generate a 7.57% ROI.
Dubai Silicon Oasis (DSO): Tech Hub of the Future
Dubai Silicon Oasis is rapidly emerging as the emirate’s answer to Silicon Valley, attracting tech companies and startups with its forward-thinking infrastructure and incentives. As a dedicated free zone for technology-based companies, DSO offers state-of-the-art facilities, including smart city initiatives, affordable office spaces compared to more central locations, and strong government support for innovation and entrepreneurship.
The area has witnessed an impressive growth in tech-related businesses, driving demand for office and residential spaces. DSO’s commitment to fostering a knowledge-based economy makes it a compelling choice for long-term investment, particularly for businesses in the technology and innovation sectors looking to be part of Dubai’s digital future.
- Offices for sale in DSO have an average price per sq. ft. of AED 675. They are a good choice if you’re searching for affordable offices for sale in Dubai.
- The average transaction price for DSO offices is AED 670k. Expected ROI is 10.73%.
Top Areas to Buy Commercial Property in Dubai: Shops
International City: Affordable Commercial Hub
International City offers a unique proposition for businesses looking for cost-effective commercial spaces without compromising quality. The area provides a diverse range of affordable retail and office spaces, catering to a large expatriate community with a ready customer base. Ongoing infrastructure improvements enhance accessibility, while the mix of residential and commercial areas creates a self-sustained economy.
Recent data shows International City as one of the top locations for buying shops in Dubai, indicating strong demand from small to medium-sized businesses. The area’s affordability and potential for growth make it an attractive option for investors seeking value, particularly those looking to enter the Dubai market without the high costs associated with more central locations.
International City can be the ideal place to invest in the commercial property market if you want to buy a shop. It provides benefits such as easy access to the Ras Al Khor Industrial Area.
- Potential buyers can expect to pay AED 1,044 per sq. ft. for the shops for sale in International City.
- The transaction price for these properties averages at AED 1.05M. International City shops offer an ROI of 5.01%.
Meydan City: The Rising Star of Commercial Real Estate
Home to the iconic Meydan Racecourse, Meydan City is rapidly transforming into a premier destination for commercial real estate, blending business, leisure and luxury living.
With various upcoming off-plan residential developments, Meydan strongly emphasises green spaces and sustainable urban planning. Its strategic location between Dubai International Airport and Downtown Dubai positions it as a future commercial powerhouse.
While not fully developed, Meydan City attracts significant investor interest due to its potential for high returns. The area’s master plan includes extensive commercial zones that are expected to become major business centres in the coming years, offering a unique opportunity for investors to get in on the ground floor of what promises to be one of Dubai’s most prestigious business districts.
- Shops for sale in Meydan City offer an ROI of 6.35%.
- The average transaction price of Meydan shops for sale is AED 2.2M.
- The average price per sq. ft. is AED 3,995.
Top Areas to buy commercial property in Dubai: Warehouses
Dubai Investment Park (DIP): Industrial and Commercial Powerhouse
DIP is a key player in Dubai’s industrial and commercial sectors, offering a unique mix of industrial, commercial, residential and recreational areas. Dubai Investments Park provides strong connections to major highways and ports, featuring purpose-built facilities for warehousing and logistics. It is currently experiencing a rising demand for industrial and storage spaces due to the e-commerce boom.
The neighbourhood has seen a surge in demand for warehouses and industrial spaces, with rental yields reaching 5.80%. This trend is expected to continue as Dubai cements its position as a global logistics hub, making DIP an attractive option for investors looking to capitalise on the emirate’s growing industrial and logistics sectors.
- Warehouses for sale in DIP are priced around AED 360 per sq. ft.
- The average transaction price is AED 3.1M.
- DIP warehouses have an expected ROI of 5.80%.
International City is another preferred location to buy warehouses in Dubai.
Frequently Asked Questions
Where else can I buy commercial real estate in Dubai?
Besides the mentioned areas, Al Qouz, Downtown Dubai, Deira and Dubai Marina are also popular for commercial property sales in Dubai.
Where can I rent commercial properties in Dubai?
Most of the mentioned areas are also popular for commercial property rentals. Looking at the top areas to rent commercial property in Dubai can give businesses a better idea of their options. Those doing so for the first time can check out our guide on renting commercial properties in Dubai.
What are the different types of commercial properties available in Dubai?
Those looking to start or operate businesses in the emirate are spoilt for choice regarding suitable workspaces. With the option to buy or rent, you can choose from offices, shops, warehouses, commercial plots and other types of commercial properties in Dubai.
I want to buy commercial property in Abu Dhabi. Where should I look?
Prospective buyers who want to purchase commercial real estate in the capital city can focus on the popular areas to buy commercial properties in Abu Dhabi.
What types of commercial properties are available in Al Quoz?
Al Qouz is a preferred destination for buying warehouses, commercial land, shops and offices at affordable prices.
That concludes our guide to the top areas to buy commercial property in Dubai. Before you commit, knowing what you are in for is best. Some tips on dealing with commercial property in Dubai can be helpful in the long run.
Dubai’s commercial real estate market offers diverse investment opportunities, each with unique advantages. From the bustling heart of Business Bay to the tech-focused environment of Dubai Silicon Oasis, investors have a wealth of options regarding commercial property for sale in Dubai to suit different business needs and investment strategies.
Looking to invest in commercial property in Dubai? Whether you’re searching for off-plan shops for sale or offices for sale in instalments, there are plenty of options to suit your needs. From prime retail spaces in bustling areas to flexible payment plans for office spaces, Dubai’s commercial market offers great opportunities for businesses and investors alike.
Which of these areas would you consider investing in for commercial properties? Let us know in the comment section below.
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