For UK businesses expanding into the Middle East, the question of whether to own or rent office space in Dubai has become increasingly pertinent.With commercial property prices rising about 24.5% year-on-year and rental rates up around 23% in Q1 2025, the financial calculus has shifted considerably
Dubai’s commercial real estate landscape is evolving rapidly. Business Bay, one of the emirate’s premier business districts, has emerged as a focal point for this transformation.
The area now features everything from traditional office towers to innovative concepts like HQ by Rove, Dubai’s first hospitality-branded office space for sale, offering fully furnished modular offices with hotel-style amenities. This new generation of commercial property is redefining what office ownership can offer.
Owning vs. Renting Office Space in Dubai – Which Option Is Better?
The True Cost of Renting
Traditional office space in Business Bay commands between AED 70–150 per sq ft annually (£14–31/sq ft), whilst Grade-A towers can reach AED 160 per sq ft (£33/sq ft). For a modest 1,000 sq ft office, this translates to AED 100,000–160,000 per year (£20,400–33,000).
Serviced offices, whilst offering flexibility, come at a premium. Providers like Regus charge approximately AED 2,475 per person monthly (£506), which for a five-person team amounts to AED 148,500 annually (£30,311). Over a decade, this accumulates to nearly AED 1.5 million (£306,150), with zero equity to show for it.
These costs don’t include the inevitable rental increases. Dubai’s office market remains landlord-driven, with limited supply pushing rates higher each year. Tenants also face service charges, typically 10-20% of base rent, plus DEWA utilities and potential fit-out costs for unfurnished spaces.
The Ownership Alternative
Purchasing office space requires greater initial capital but offers compelling long-term advantages. Commercial properties in Business Bay’s newer developments start from approximately AED 3–4 million (£612,300–816,400) for quality units.
Projects like Binary Tower and Bay Square offer office spaces for sale at varying price points, whilst developments such as HQ by Rove start at around AED 3 million (£612,300) with a 50/50 payment plan (50% during construction, 50% on handover).
The ownership model includes annual service charges, typically AED 10–25 per sq ft (£2.04–5.10/sq ft) for commercial buildings, covering maintenance, security, and communal facilities. For a 1,000 sq ft office, this amounts to AED 10,000–25,000 yearly (£2,041–5,102), considerably less than rental costs.
Break-Even Analysis
Consider a 1,000 sq ft office purchased for AED 3 million (≈£612,000):
- Annual service charges: ~AED 20,000 (≈£4,100)
- Rental equivalent saved: AED 120,000 (≈£24,500)
- Net annual benefit: AED 100,000 (≈£20,400)
At this rate, the ownership investment breaks even within 30 years. However, when factoring in Dubai’s commercial property price growth forecasts of roughly 8–10% in 2025 and rental yields averaging 7–9%, the equation shifts dramatically.
Owners can lease their space when not needed, generating passive income, or benefit from capital appreciation upon sale.
Additional Ownership Benefits
Beyond financial returns, freehold commercial property ownership in Business Bay and other designated zones offers UK investors significant advantages.
Properties valued at AED 2 million (≈ £408,000) or more qualify for the UAE’s 10-year Golden Visa, which grants long-term residency rights for investors and their immediate families. (Note: applies to both residential and commercial properties.)
Dubai imposes no corporate income tax on commercial property rental income, no capital gains tax on property sales, and no inheritance tax. This creates a uniquely tax-efficient investment environment compared to the UK, where commercial property owners face corporation tax on rental income and capital gains tax on disposal.
The freehold ownership structure grants 100% foreign ownership rights, allowing UK businesses complete control over their assets. Owners can modify spaces to suit their needs, sublease portions, or pass the property to heirs without restriction.
The Verdict
For businesses planning short-term operations (under 5 years) or requiring maximum flexibility, renting remains practical. Serviced offices suit startups testing the market, whilst traditional leases work for companies with evolving space needs.
However, for UK businesses committed to long-term Middle East operations, ownership presents a compelling case. The combination of rental cost savings, capital appreciation potential, Golden Visa eligibility, and tax advantages creates a powerful wealth-building tool.
In a market where Grade-A office space commands premium rates and supply remains constrained, early ownership locks in today’s prices whilst generating future returns.
The emergence of innovative ownership models, from traditional towers to hospitality-inspired concepts, means businesses can now choose spaces that align with their operational needs and company culture.
Whether prioritising location, amenities, or investment potential, Dubai’s commercial freehold zones offer UK investors a spectrum of options that rental markets simply cannot match.
Disclaimer:
All prices, exchange rates, and market data provided in this article are approximate and based on publicly available information as of October 2025. Actual costs may vary depending on location, property specifications, developer pricing, and currency fluctuations.
Readers are advised to verify current figures with licensed real estate professionals or financial advisors before making investment decisions.
Frequently Asked Questions
Can UK citizens own commercial property in Dubai?
Yes. UK citizens can purchase commercial property with 100% freehold ownership in designated freehold zones such as Business Bay, Dubai Marina, and Jumeirah Lake Towers. (DIFC offers long-term leasehold ownership, not standard freehold.)
What is the typical down payment for commercial property in Dubai?
Most developers in Dubai require 10–20% as an initial booking deposit, with staged payments during construction. Commercial mortgage down payments for foreigners usually start around 35–40%, depending on the bank and property type.
Are there ongoing costs beyond the purchase price in Dubai?
Yes. Owners pay annual service charges (typically AED 10-25 per sq ft / £2-5.50 per sq ft for commercial properties in Dubai), covering building maintenance, security, and facilities. Additionally, owners are responsible for DEWA utilities, property insurance, and any interior modifications. There are no recurring property taxes in Dubai.
How does the Golden Visa work for commercial property owners in the UAE?
Purchasing commercial property in Dubai valued at AED 2 million (≈ £408,000) or above qualifies you for a 10-year renewable UAE Golden Visa. This grants long-term residency rights for you and your immediate family (spouse and children), along with the ability to sponsor relatives and domestic staff.
Can I rent out my office in Dubai if I’m not using it?
Absolutely. Freehold commercial property owners in Dubai have complete rights to lease their space to third parties. Business Bay commercial properties typically generate 7-10% annual rental yields. Many owners occupy part of their space whilst leasing the remainder, offsetting ownership costs.
What are service charges and how are they calculated?
Service charges in Dubai are annual fees covering communal area maintenance, security, landscaping, building management, and shared utilities. They’re calculated per square foot and vary by development quality and amenities offered. Luxury commercial buildings with extensive facilities charge higher rates (AED 20–30/sq ft / £4.08–6.12/sq ft) than standard buildings (AED 10–15/sq ft / £2.04–3.06/sq ft).
Is Business Bay considered a safe investment area?
Business Bay is one of Dubai’s most active commercial districts, recording over 300 office transactions in Q1 2025, ranking among the busiest commercial areas in the emirate. Its central location adjacent to Downtown Dubai, direct metro connectivity, and proximity to DIFC make it highly desirable.
How long does the purchase process take in Dubai?
For ready properties in Dubai, the purchase process typically takes 2-4 weeks from offer acceptance to completion. This includes property valuation, mortgage approval (if applicable), Dubai Land Department registration, and title deed transfer. For off-plan properties, the timeline extends to the project’s completion date, with staged payments throughout construction.
