Living in a warehouse in Al Quoz: what the permitted use of the unit actually allows

Industrial districts regularly offer units with high ceilings and generous floor area at prices well below residential. The idea of turning one into a home, or a studio you also live in, suggests itself. Before running any numbers, you need to understand the unit’s permitted use.

Why permitted use decides everything

• Every unit has a permitted use — industrial, warehouse, commercial or residential. It is recorded in the documents and does not change with how you furnish the space.
• Living in a non-residential unit is not allowed, and the consequences fall on the owner, not the tenant.
• Utilities and tenancy contracts follow the permitted use. A residential lease on a non-residential unit simply will not register.
• The bank looks at the same thing. Finance on a non-residential property is a different product on different terms, and some banks do not offer it at all.

What can legally be done instead

• A workshop, studio, showroom, warehouse or office — provided it matches the permitted use and you hold the necessary permits.
• Letting non-residential space is a market of its own, with its own rents, timelines and tenants. It exists and it works; it just is not housing.
• Changing the permitted use is possible in theory, but it is a procedure with an uncertain outcome. Do not build your numbers on it.

What to check

• The unit’s permitted use, in writing, before the transaction.
• The ownership status of the plot — industrial areas are not uniformly open to foreign buyers.
• Which licences a tenant would need for the activity you plan to let the space for.
• Rents and time on market for non-residential space in the same neighbourhood.
• Whether finance is available for this type of property.

Based on the zoning of the area and common practice in dealing with non-residential units. For a specific property, take legal advice.