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Whether you are an investor looking for above average returns or a business owner looking to fix your costs the process of purchasing commercial property in Dubai can be difficult and frustrating without accurate information. Before commencing your search for your Dubai office space the following points should be considered:
Who is eligible to buy Dubai commercial property?
Any person or entity of any nationality, whether based overseas or a resident of Dubai, can purchase Dubai commercial property.
What documents do I require?
An individual:
A company:
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Certificate of Incorporation
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Memorandum and Articles of Association
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Board Resolution
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Signing Authority letter
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Passport copy of signatory
By an overseas company:
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All of the above must be attested by the UAE Embassy
Am I eligible for a Dubai residence visa?
No.
What is the difference between operating onshore or within free-zone?
The principle difference is when operating onshore in Dubai you are regulated by the Dubai Economic department (DED) and currently required to have a local partner that owns 51% of the company. You will also be subject to a 5% import duty on any imported goods for sale.
While operating within a freezone you retain 100% ownership with the freezone authority essentially becoming your local partner. There are however theoretical restrictions on operating onshore outside of the freezone which are not generally enforced but need to be taken into consideration.
Subject to your business activity and plan you will be need to select a freezone that best suits your industry i.e Dubai Media City (DMC), or Dubai International Financial Center (DIFC). Our consultants will be able to introduce you to the relevant authority.
Can I get mortgage?
Yes.
What are the Government charges?
The Dubai Land Department (DLD) levies a transfer fee of 2% of the sale price of the property and an additional 0.25% of the sale price of the property if the property is being purchased with a mortgage.
Are there any other fees or charges?
What are service charges?
Service charges are levied by the towers owners association and collected by the appointed building manager in order to maintain the common areas and facilities of the tower, the security and monitoring and to generally ensure the smooth running of the tower.
Services charges for commercial property in Dubai vary between AED 11/ sqft to AED 40/ sqft, depending on the facilities and features of the tower, the annual community charge levied by the master developer of the community and if district cooling is provided.
Will the commercial property come with any warranties?
Warranties covering property defects are dealt with contractually and it is common in Dubai for property developers to repair general defects for a period of 12 months from the date of the property handover.
There is also a code of standards applied by the Dubai Municipality for the construction of commercial towers in Dubai as well as regulations requiring the property developer to maintain a 10 year structural warranty for the tower.
How do I buy a commercial property?
At CORE Commercial we aim to find you the office space that best suits your operational needs and / or investment strategy.
Once we have found you the right property and agreed an acceptable sale price with the seller a deposit amount of 10% of the agreed sale price will be need to be deposited with CORE Commercial when signing a Memorandum of Understanding (MOU). Prior to signing the MOU and paying the deposit, our consultant will ensure that all the required documents from the seller have been checked and verified.
Once the MOU has been signed by both parties and the deposit paid to CORE Commercial depending on the time frame outlined in the MOU, the next and final stage of the process involves the transfer of the property at the Dubai Land Department (DLD) where the remaining amount of the sale price will be paid to the seller and documentation confirming the transfer of the property or a new title deed will be produced by the DLD .
What is a typical purchase timeframe?
A purchase can be completed as quickly as seven days depending on the finances of the buyer and availability of both parties. However it most cases it takes between four to six weeks to complete.
Can I re-sell the property?
Yes, you can sell your property to anyone once the property transfer at the Dubai Land Department (DLD) is complete and you are in possession of your property title deed.
How do I connect electricity, water, Cooling and other services?
In order to connect to DEWA and other services for a commercial property you must have a valid trade license. For further information on connections and transfers, please visit;
DEWA: www.dewa.gov.ae or call +971 4 324 4444.
DU: http://www.du.ae or call +971 4 3699 188 (from overseas) or 800 188 (from any UAE phone).
Etislat: http://www.etisalat.ae or call 800 101
Palm District Cooling: http://www.palmdistrictcooling.com/ or call 800 PALMU (72568)
Empower: http://www.empower.ae or call +971 4 375 5555
Tabreed: http://www.tabreed.com/ or call +971 2 645 5007
Can I lease my commercial property?
Yes, you can lease your property once the property transfer at the Dubai Land Department (DLD) is complete and you are in possession of your property Title Deed.
Lease rates will depend on the area of the property, the build quality of the tower and its facilities. Core Commercial can advise you on the best strategy in order to secure a suitable tenant.
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