Dubai offers numerous attractions suiting moneymaking and residing purposes. Consequently, the most popular cities list includes Dubai. One attraction is plentiful offices. Besides, these offices are adequately equipped. This fact makes these offices state-of-the-art offices. What is more, these are open to:

  1. Rent
  2. Lease
  3. Sale

Nearly all firms choose temporary space solutions first. They finalize business space later on. Simply, they purchase business spaces after settling down. Whether it is:

  1. Buying,
  2. Leasing, or
  3. Renting
  4. commercial properties, it needs the trade license first. Luckily, Three Dubai entities issue trade licenses. This fact makes issuing easy, convenient, and quick. These entities are:

  1. Dubai Economic Department, also known as DED
  2. Any Registered Free Zone. Dubai Multi Commodities Centre, known as DMCC, and Dubai Silicone Oasis, also known as DSO, are fine examples in this category.

Apparently, rent and lease appear similar. However, legalities show these different. These mean different responsibilities too. Let’s see one aspect contributing to difference.

  1. In a rental agreement, occupation time varies from weeks to months. 12 months is the upper limit. Usually, the agreement is auto-renewable. Simply, the agreement renews itself after expiry. The legal termination ends its auto-renewing.
  2. In a lease undertaking, the occupation time spans over years. A few years’ time is the minimum here. The lease validity can stretch to 99 years too. It isn’t auto-renewable either. When an agreement is fulfilled, continuity needs a proper renewal.

Turning to leasing commercial estates, Dubai offers four general categories of agreements. These are in the following

  1. Gross Lease
    It is a basic lease. In this category, a tenant is bound to pay rent only. It is on a monthly basis. The landlord pays maintenance expenses, tax, insurance cost, etc.
  2. Land Lease
    This category applies when a landlord leases a piece of plain land only. Tenants can do construction suitable to one’s business needs. After the agreement is over, landlord gets back:
    a. The Land
    b. Construction on the that land
  3. Triple-Net Lease
    Candidly, this lease isn’t very popular among tenants. The reason is simple. It is expensive for them. For landlords, they find it favourable. Tenants find Triple-Net Lease unfavourable because:

    1. They pay expenses along with rent.
    2. Expenses here include:
      1. Taxes
      2. Insurance expense
      3. Maintenance costs
  4. Modified Net Lease
    Both property owners and tenants like it. The reason is simple. It benefits both camps. Both parties share expenses.


Points to Remember

  1. Decide whether onshore category suites better or free zone does before you:
    1. Lease, or
    2. Rent
    3. commercial properties in Dubai. Each situation has different conditions.

  2. As Regards Onshore
    If a business or firm finds Onshore more suitable, it must take a Dubai national as a partner in the ownership.
  3. With Regard to Free Zones
    In this situation, all Free Zones give complete ownership to firms. Ownership remains 100% even if:

    1. no Dubai national is partner
    2. operating from any Free Zone
  4. Regarding Subletting
    It is permissible here. A tenant must acquire proper written approval from the landlord before subletting.

The value of commercial properties in Dubai has increased dramatically. Reasons are many. Some are in the following.

  1. Dubai is well-connected.
  2. It is within easy access for:
    1. Asian
    2. African
    3. European
    4. American
    5. economic and trade hubs.

  3. Earnings here are tax-free.