Гайд по аренде коммерческой недвижимости в ОАЭ

Due to the fact that Dubai is becoming an increasingly popular global business center, many international companies prefer to open their offices and branches in the territory of the emirate. Among the key reasons for such high demand are a favorable business environment, reduction of state duties, attractive visa schemes and attractive investment opportunities.

Modern Dubai is a developing destination for well-known global companies, including Meta and Visa. If you want to open a business here, you need to be well-versed in the process of renting commercial real estate. From this article you will learn the main nuances and subtleties of the procedure for renting commercial premises, from the necessary documents to possible types of contracts.

How to rent a commercial property in Dubai

Before starting your own business and renting commercial real estate, you need to obtain a trade license, which is issued by the Dubai Economic Department (DED). Such a permit can also be obtained on the territory of one of the free economic zones, such as Dubai Multi Commodities Centre (DMCC) or Dubai Silicon Oasis (DSO). When you apply for a trade license, you will also be able to familiarize yourself with the categories of commercial objects used in Dubai.

Choosing the optimal location

When choosing commercial real estate in Dubai, you can analyze the most suitable areas for you based on the type of your license. For example, holders of a DMCC-free zone license are required to carry out their activities exclusively within this area. The following factors should also be taken into account:

viability of the business in the selected location;
the possibility of creating sufficient pedestrian passability;
availability of parking spaces for employees and potential customers.

Types of offices and visas for employees

Companies registered in the UAE can provide resident visas for their employees. At the same time, the number of foreigners who will be able to obtain work visas at the enterprise is limited by the type of selected premises:

Flexi desk: up to three visas;
Serviced office: four or five visas, depending on the size of the office;
Physical space: one visa for every 9 m.

Required set of documents

In Dubai, the procedure for assigning commercial real estate is subject to strict rules. For example, you cannot use a warehouse as an office and vice versa. To avoid unnecessary difficulties, it is recommended to prepare the following set of documents:

certificate of ownership of the business;
permission to use the selected commercial premises;
confirmation of compliance of the property with existing plans.

Note! The procedure for renting commercial real estate in Dubai is regulated by Ejari, a mandatory legal document that confirms the authenticity of the transaction.

If you intend to reconstruct the rented premises in any way, for example, to install separate booths for employees, then the possibility of performing such actions should be specified in the contract. In order to avoid disputes and misunderstandings in the future, the document should indicate the key features and facts about your business. Also, the lease agreement must specify: the address of the property, the rental rate, the terms of use of the premises and the start date of the agreement.

Along with the documents mentioned earlier, the landlord may ask you to provide:

a copy of the business plan;
personal and corporate financial report(s);
bank account statement;
current credit scores from three credit bureaus;
recommendations of the previous/current lessor (for existing businesses changing their legal address);
prior authorization from the licensing authority;
passport of the head of the company;
a letter with the right to sign.

Budget planning

Budget is one of the most important factors when renting commercial real estate. It is important to keep in mind that in addition to the rental rate set by the contract, you will need to pay a security deposit and other related expenses. In case of extension of an existing lease agreement, it is recommended to check the current rates in advance using the RERA rent increase calculator. It will allow you to assess the likelihood of an increase in spending in the future.

It is also important for potential tenants to distinguish between the concepts of «rent» and «leasing». The lease agreement is concluded for a period of one year, after which it will be automatically renewed. The lease agreement, in turn, is concluded for several years. Its validity period can last up to 99 years.

There are 4 common types of commercial real estate lease agreements:

Land lease — in this case, the right is granted to build a targeted commercial building on the land plot. Upon expiration of the contract, the lessor receives his land back together with the real estate.
Triple-net lease is the least popular type of lease, because it is quite expensive for tenants, but very profitable for the landlord. In this case, the tenant pays the rent and bears the costs of insurance, taxes, maintenance and so on.
Modified-net lease is the most preferred type of lease, because it has many advantages for landlords and tenants, and the costs are distributed between both parties by agreement of the parties.

What needs to be done after signing the contract

After signing a commercial real estate lease agreement, you must:

Connect electricity and water to DEWA.
Get insurance covering property damage.
In the case of renting a room with a fine finish, you will have to hire an interior designer. Landscaping of a standard office with an area of 93-371 sq. m. m will take about 6-8 months. In the case of equipped premises, you can immediately start using such real estate, since it is already equipped with the necessary furniture, desks, partitions, etc.

Sublease of commercial real estate

In Dubai, the sublease of commercial properties is allowed subject to the written permission of the lessor. In order to avoid any disputes, it is strongly recommended to make an appropriate clause in the lease agreement in advance.

Early termination of the contract

The tenant of a commercial premises may terminate the contract at any time, provided that he has sufficient funds to pay a fine to the landlord for failure to meet the deadlines. As a rule, the amount of the fine is equivalent to the cost of two months of rent. In this case, it is worth warning the landlord in advance about any changes in your plans, since based on your circumstances, the amount of the fine may be reduced.

Features of making payments

In most cases, the payment for the rental of real estate in Dubai is made using bank checks. Local landlords prefer to accept checks issued to the tenant’s personal bank account or company account in the UAE. To do this, at the time of signing the contract, the tenant must be provided with the necessary settlement documents for the entire term of the contract.

The number of checks is subject to negotiation. Often 4-6 payments are made per year. If necessary, the tenant can pay the entire cost of the annual rent with one check. In addition to the rental rate, he is also obliged to cover the administrative fee/maintenance costs and make a security deposit of 5% of the amount specified in the contract.

How can we help

Real estate agents at Top Address are ready to help you find the most suitable place to place your business, whether it’s a beauty salon, grocery store or fashion boutique. We will provide you with all the necessary information about current rental prices, market trends and the latest legislative changes so that you can extract maxim

Guide for renting commercial real estate in the UAE