Dubai is a central commercial hub that draws companies from all over the world. In Dubai, new policies and rules were put in place to make it easier for entrepreneurs and company owners to start businesses there. In this article, we mentioned commercial real estate in Dubai.
Buying Vs. Renting in Dubai
Due to the present market's favorable circumstances, expat business owners may expect to recoup their capital investment in commercial real estate over the next ten years. It also reduces the expense of renting and frees up funds for initiatives that help the business grow.
The Overall Cost of Buying a Commercial Real Estate in Dubai
Purchasing commercial property in Dubai comes with several upfront fees that company owners should know about.
The worth of a property
The 4% transfer charge to the Dubai Land Department (DLD)
Value-added tax of 5% (VAT)
The trustee registration cost is AED 4K plus VAT of 5% equals AED 4,200.
The real estate agent commission
Best Areas for Commercial Real Estate in Dubai
Business owners and entrepreneurs can use the mainland of Dubai or a free zone to establish a company. The ownership regulations vary between the two.
Non-UAE citizens own one hundred percent of the company in a free zone. Foreign nationals can only do commerce and trade with other non-UAE citizens. On Dubai's mainland, foreign nationals had to have a UAE national sponsor who owned a 51% stake in the company. However, with implementing the rule on 100 percent foreign ownership in 2018, this requirement was changed.
Even though both zones allow 100 percent foreign ownership, Dubai's mainland zones restrict foreign ownership to a few specific types of businesses. 95% of new firms in Dubai are contemplating setting up shop in a free zone.