Commercial Property in the UAE
Dubai offices
| Measure, H1 2026 | Figure |
|---|---|
| Office sales | AED 15.8 billion across about 2,600 transactions; 65% off-plan |
| Average sale price | AED 2,012 per sq ft, up 15% year on year |
| Average rent | AED 189 per sq ft a year, up 14% |
| Largest rent rises | Downtown Dubai 17.5%, Barsha Heights 17.2%, DIFC 17.1% |
| Most office sales | Business Bay (814), Al Sufouh 1 (498), Jumeirah Lakes Towers (333) |
| Office stock | 9.46 million sq m; 150,000 sq m more due by end-2026 |
Source: Cavendish Maxwell via Zawya: Dubai office sales reach AED 15.8 billion in H1 20261
CBRE reports that Dubai office rents rose 13% in the year to Q2 2026, with prime rents up 16% and occupancy at about 94%. In Abu Dhabi, CBRE puts the rise in average office rents at nearly 16%, with occupancy of about 96%.2
Abu Dhabi offices and retail
- Office stock reached 3.4 million sq m, up 0.3% from the end of 2025.
- Office occupancy was 95% across the market and in the prime and Grade A segments; new-lease office rents rose 13%.
- Retail space reached 3.85 million sq m of gross leasable area, with occupancy in the mid-nineties and new-lease rents up 9%.
Source: ADREC: Abu Dhabi Real Estate Market Report for H1 20263
Leasing: Ejari in Dubai
Tenancy contracts in Dubai are registered in Ejari, the Land Department's system. The Dubai REST app only accepts contracts where both landlord and tenant are individuals; a lease signed by a company is registered at a Real Estate Services Trustee Centre or by a licensed property management company.4
| Ejari fee, via Dubai REST or the website | AED |
|---|---|
| Registration | 100 |
| Knowledge and innovation fees | 20 |
| Service partner fee plus VAT | 57.75 |
| Total | 177.75 |
| Total at a Real Estate Services Trustee Centre | 220 |
Source: Dubai Land Department: Register or renew a tenancy contract4
Decree No. 43 of 2013 caps rent increases for real property in Dubai, using the RERA rental index, when a lease is renewed.5
Buying an office
Foreigners can buy offices and shops in the areas of Dubai set aside for ownership by non-UAE nationals under Regulation No. 3 of 2006. Business Bay, Al Sufouh 1 and Jumeirah Lakes Towers were the busiest office sales locations in H1 2026.6,1
| VAT on property | Rate |
|---|---|
| Sale or lease of commercial property | 5% |
| First supply of a new residential building within 3 years of completion | 0% |
| Later sales and leases of residential property | Exempt |
| Bare land | Exempt |
Source: Federal Tax Authority: VAT and real estate, frequently asked questions; Federal Tax Authority: Real Estate VAT Guide (VATGRE1)7,8
An owner of a non-residential building must register for VAT once its supplies exceed AED 375,000 over the past 12 months. When you buy a commercial unit from someone other than the developer, you pay the VAT to the Federal Tax Authority before the Land Department transfers ownership.7,9
Frequently Asked Questions
Is there VAT on commercial property in the UAE?
Yes. Sales and leases of commercial property are subject to VAT at 5%, while later sales and leases of residential property are exempt.
Sources
- Cavendish Maxwell via Zawya: Dubai office sales reach AED 15.8 billion in H1 2026
- CBRE: UAE Real Estate Market Review Q2 2026
- ADREC: Abu Dhabi Real Estate Market Report for H1 2026
- Dubai Land Department: Register or renew a tenancy contract
- Dubai Legislation: Decree No. 43 of 2013 Determining Rent Increase for Real Property
- Dubai Legislation: Regulation No. 3 of 2006 Determining Areas for Ownership by Non-UAE Nationals
- Federal Tax Authority: VAT and real estate, frequently asked questions
- Federal Tax Authority: Real Estate VAT Guide (VATGRE1)
- Federal Tax Authority: VAT payment guide for commercial property buyers
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.