Offices in Dubai can be a very good investment, but only the right office. Between 31 August and 12 October 2026, buyers registered 573 office sales with the Dubai Land Department. The median office sold for AED 2,124 per sq ft, 27% more per sq ft than the median apartment. Office rents rose 13% in the year to June 2026 while home rents fell. The catch is that most new offices are sold off plan and marketed as Grade A, and Grade A has no official definition in Dubai.
This guide answers the questions investors ask us most: why commercial offices, whether they are a good or bad investment, commercial versus residential, the real ROI on commercial real estate, and what Grade A, Grade B and Grade C actually mean. Every price figure below comes from the Dubai Land Department open data register, not from asking prices.
Dubai offices vs apartments: the registered numbers
| Measure | Offices | Apartments |
|---|---|---|
| Registered sales, 31 Aug to 12 Oct 2026 | 570 | 11,888 |
| Median price | AED 2,000,500 | AED 1,150,000 |
| Median price per sq ft | AED 2,124 | AED 1,666 |
| Median size | 1,025 sq ft | 747 sq ft |
| Off plan median per sq ft | AED 2,291 | AED 1,736 |
| Ready median per sq ft | AED 1,774 | AED 1,373 |
| Share sold off plan | 64.0% | 71.4% |
| Share at AED 2 million or more | 50.7% | 23.9% |
| Total value | AED 2.62 billion | AED 19.2 billion |
Two things stand out. Half of all office purchases were AED 2 million or more, the purchase value the Dubai Land Department Golden Visa service lists for an investor Golden Visa. Only one apartment purchase in four reached that level. And the resale market for apartments is about 21 times deeper, which matters when you want to sell.
Why invest in commercial offices in Dubai?
- Office rents are rising while home rents fall. Average Dubai office rents rose 13% and prime office rents 16% in the year to the end of June 2026, with occupancy around 94%. Over the same period average residential rents were 2.6% lower than a year earlier. Source: CBRE Q2 2026 review, reported by Gulf News.
- Higher headline yields. Prime Dubai office yields averaged 7% to 9% according to Cushman and Wakefield Core, June 2025. Citywide residential yields run at about 6% to 8% according to Khaleej Times, February 2026.
- Limited quality stock. Grade B buildings make up nearly 70% of Dubai’s office inventory, and the large wave of new supply arrives from 2028 onward. Source: Cushman and Wakefield Core, Office Marketbeat Q2 2026.
- A Golden Visa sized ticket. The median office sold for AED 2,000,500, right at the AED 2 million Golden Visa purchase value. The DLD service page does not limit that rule to homes, but confirm eligibility for your unit before you buy.
Are commercial offices a good or bad investment?
They are good when the building is in a proven business district, the tenant is solid and the service charge is sensible. They are bad when an investor buys a brochure instead of a building. The risks are different from apartments, not smaller.
When an office is a good investment
- It sits in a district with existing corporate demand, such as JLT or Business Bay, where ready offices already trade. JLT recorded 96 ready office sales in the window, the most of any area.
- Comparable ready offices in the same building or street already achieve the rent you are counting on.
- The net usable area is efficient and the service charge leaves a healthy net yield.
When an office is a bad investment
- Vacancy is lumpy. One office has one tenant. If that tenant leaves, your income goes to zero until you relet.
- The market is cooling at the edges. Average city rent slipped 2% in Q2 2026, the first quarterly fall in nearly five years, and the softening was concentrated in Grade B stock. Source: Cushman and Wakefield Core, Office Marketbeat Q2 2026. Savills, Dubai office market Q2 2026 also called Q2 2026 the first quarter without rental growth since 2021.
- VAT applies. The sale and rent of commercial property in the UAE are subject to 5% VAT, unlike most residential property. Source: Gulf News on VAT for commercial property.
- Strata ownership adds friction. Owning one office in a building of many owners can complicate management and capital works, a point Cushman and Wakefield Core, June 2025 makes about strata models.
Commercial real estate vs residential real estate: which makes more money?
There is no universal winner. Commercial property usually pays a higher income when it is let. Residential property is easier to let, finance and sell. The table sets the two side by side.
| Factor | Commercial office | Residential apartment |
|---|---|---|
| Median registered price per sq ft | AED 2,124 | AED 1,666 |
| Rent trend to June 2026 | Up 13% a year | Down 2.6% a year |
| Typical yield range quoted | 7% to 9% prime | 6% to 8% citywide |
| VAT on sale and rent | 5% | Generally zero rated or exempt |
| Tenant | A company with a trade licence | A household |
| Depth of resale market | 570 sales in six weeks | 11,888 sales in six weeks |
| Golden Visa sized purchases | 50.7% of sales | 23.9% of sales |
Our view: commercial makes more money for an investor who can carry a vacant period and who buys on evidence. Residential makes more money, more reliably, for an investor who needs liquidity or a mortgage. Many of our clients hold both.
ROI for commercial real estate: how to calculate it
ROI on an office has three parts: the rent you collect, the costs you pay, and the change in value when you sell. Developer brochures usually show only the first.
- Gross yield = annual rent divided by purchase price. AED 160,000 rent on an AED 2,000,000 office is 8.0% gross.
- Net yield = annual rent minus service charge, vacancy, management and maintenance, divided by purchase price plus buying costs.
- Total ROI = net income over the years you hold, plus or minus the change in price, minus buying and selling costs, divided by the cash you put in.
The Dubai Land Department sales file we analyse does not carry office rents, so we do not publish an average yield for strata offices. Use the Cresco rental yield calculator with rents from completed buildings, and check sold prices on the Cresco Dubai Property Price Index.
Grade A vs Grade B vs Grade C offices
| Feature | Grade A | Grade B | Grade C |
|---|---|---|---|
| Location | Prime or highly desirable | Good or secondary | Often less desirable |
| Building quality | High specification | Standard to good | Basic or outdated |
| Elevators | Modern, efficient | Standard | May be older |
| Facilities | Comprehensive | Moderate | Limited |
| Tenant profile | Often large corporations | SMEs and established businesses | Budget conscious occupiers |
| Rental positioning | Premium | Mid market | Lower cost |
| Maintenance | Typically professional | Varies | Often more limited |
| Investment cost | Usually higher | Moderate | Often lower |
The international reference is the BOMA classification, and even BOMA says each building classification is relative to its own market and that no formal standard exists. Source: BOMA building classification guide. In Dubai, Grade B stock makes up nearly 70% of the office inventory, and Grade A and institutional buildings held their rents best in 2026.
Why “Grade A” in a brochure is not a certificate
Dubai has seen growing interest in purpose built commercial office developments. Developers are responding by launching projects marketed as Grade A Offices, Premium Corporate Offices, Luxury Business Suites and Branded Commercial Offices. But there is a problem with relying on these descriptions.
Unlike an official regulatory certification, Grade A is not a single universally defined classification. Different developers, brokers, valuers and commercial property consultants may use different assessment criteria. A developer might offer a beautiful lobby, a glass facade, modern elevators and luxury finishes, and market the development as Grade A. But what happens if:
- The building has insufficient parking?
- The floor plates are inefficient?
- Elevator waiting times become excessive?
- Service charges are disproportionately high?
- The location has weak corporate tenant demand?
- There are restrictions on commercial activities or licensing?
The building might look premium without delivering the functionality expected from a competitive Grade A office. A luxury looking office is not automatically a Grade A office. The register shows why this matters: off plan offices in Business Bay sold at a median AED 5,688 per sq ft, while ready offices in the same district sold at AED 1,879.
What investors should actually examine
When I evaluate an off plan commercial office investment in Dubai, I focus on five factors.
- Location and tenant demand. Is the project in an established business district, or is the developer relying on future demand?
- Net usable area. How much of the purchased area can actually be occupied or leased efficiently?
- Building specifications. Examine ceiling heights, floor loading, HVAC capacity, elevators, parking ratios and power infrastructure.
- Operating expenses. A premium building with excessive service charges can significantly reduce net rental returns.
- Comparable rental evidence. Are completed buildings of similar quality achieving the rents projected by the developer?
Umer Shauket, Founder and CEO, Cresco Real Estate.
Worked example: two offices at AED 2 million each
Suppose two offices each cost AED 2 million and each measures 1,000 sq ft. The figures below are an illustration of the method, not market data.
| Line | Office A, marketed as premium | Office B, ordinary building |
|---|---|---|
| Purchase price | AED 2,000,000 | AED 2,000,000 |
| Annual rent quoted | AED 180,000 | AED 160,000 |
| Gross yield | 9.0% | 8.0% |
| Service charge at AED 35 and AED 18 per sq ft | AED 35,000 | AED 18,000 |
| One month empty between tenants | AED 15,000 | AED 0 |
| Net income | AED 130,000 | AED 142,000 |
| Net yield before buying costs | 6.5% | 7.1% |
Office A looks better on the brochure. Office B pays more. That is the whole argument of this guide in one table.
Where offices sell in Dubai
| Area | Office sales | Median per sq ft | Median price | Of which off plan |
|---|---|---|---|---|
| Business Bay | 127 | AED 2,323 | AED 3,062,000 | 50 |
| Jumeirah Lakes Towers | 98 | AED 1,808 | AED 2,206,256 | 2 |
| Jabal Ali Industrial Second | 82 | AED 2,116 | AED 1,798,049 | 82 |
| Downtown Jabal Ali | 72 | AED 1,968 | AED 1,610,769 | 72 |
| Al Hebiah First | 53 | AED 2,549 | AED 6,602,000 | 53 |
| Dubai Sports City | 21 | AED 2,442 | AED 948,640 | 21 |
| Tecom Site A | 19 | AED 4,273 | AED 2,507,670 | 19 |
| Jabal Ali First | 13 | AED 1,200 | AED 1,126,980 | 13 |
JLT is the clearest ready market: 96 ready office sales at a median AED 1,906 per sq ft. Business Bay had 77 ready sales at AED 1,879. Most other districts in the table traded almost entirely off plan, so there is not yet a resale record to test the launch prices against. Read the JLT area guide for more on the district. Weighing two new Sheikh Zayed Road launches? See Berkeley Tower vs Christian A. Rockefeller Tower.
Costs of buying an office in Dubai
- Dubai Land Department transfer fee of 4% of the price, split 2% buyer and 2% seller by law and usually paid by the buyer in practice. Source: Dubai Land Department sale registration fees.
- Trustee office fee of AED 2,000 plus VAT under AED 500,000 and AED 4,000 plus VAT at AED 500,000 or more, plus the title deed fee. Source: Dubai Land Department sale registration fees.
- 5% VAT on the sale and rent of commercial property. An owner whose taxable income passes AED 375,000 in 12 months must register for VAT. Source: Gulf News on VAT for commercial property. Ask a tax adviser whether you can recover the VAT you pay.
- Service charges, which vary widely by building. Check the approved figure before you sign.
- Agency commission, usually 2% plus VAT.
For the full tax picture, read taxes in Dubai.
Frequently asked questions
Is commercial property a good investment in Dubai?
It can be. Office rents rose 13% in the year to June 2026 and prime yields have been quoted at 7% to 9%. It suits investors who buy in proven districts on rental evidence and can carry a vacant period.
What is the ROI on commercial real estate in Dubai?
Prime office yields averaged 7% to 9% according to Cushman and Wakefield Core in 2025. Your own net yield depends on service charges, vacancy and the price you pay, so calculate it per unit.
Which is better, commercial or residential real estate?
Commercial usually pays a higher income when let. Residential is easier to let, finance and resell: 11,888 apartments sold in the same six weeks as 570 offices.
What is a Grade A office?
A high specification building in a prime location with modern systems and professional management. There is no official Dubai certification, so check the building, not the label.
How much does an office cost in Dubai?
The median registered office sale was AED 2,000,500, or AED 2,124 per sq ft, between 31 August and 12 October 2026.
Can foreigners buy an office in Dubai?
Yes, in designated freehold areas. The tenant needs a trade licence to use it, and the owner must handle VAT on the rent.
Does an office qualify for the Golden Visa?
The Dubai Land Department lists a purchase value of AED 2 million or more and does not limit the rule to homes. Confirm eligibility for your specific unit before you buy.
How many types of real estate are there?
Five main types: residential, commercial, industrial, land and special purpose. See the types of real estate in Dubai.
Method and limits
- Prices come from the Dubai Land Department open data sales file covering 31 August to 12 October 2026: 15,764 sales worth AED 41.9 billion. Mortgages and gifts are excluded.
- Offices are units with the sub type Office. Apartments are units with the sub type Flat. We removed units under AED 500 per sq ft as likely entry errors and use medians, not averages.
- Offices in DIFC are registered with the DIFC registry, not the Dubai Land Department, so they are not in these figures.
- The register records price and size, not view, floor, fit out or tenancy, and this file holds no rents. Rent and yield figures come from the named consultancy reports and their dates differ.
- Consultancies measure rent differently. Cushman and Wakefield Core put the Q2 2026 city average at AED 205 per sq ft and Savills at AED 238. We quote each with its source.
Sources
- Dubai Land Department open data
- CBRE Q2 2026 review, reported by Gulf News
- Cushman and Wakefield Core, Office Marketbeat Q2 2026
- Savills, Dubai office market Q2 2026
- Cushman and Wakefield Core, June 2025
- Khaleej Times, February 2026
- BOMA building classification guide
- Gulf News on VAT for commercial property
- Dubai Land Department Golden Visa service
- Dubai Land Department sale registration fees