Renting an office in Dubai
A quoted rent in Dubai is roughly two thirds of the real payment. On top come the running costs, VAT, the deposit and, if the space comes as a shell, the fit-out plus several months of downtime. Below is what makes up the total, and what to watch in a market with almost no free space left.
Rents by grade
In the first quarter of 2025 the average asking rent in Grade A business centres rose 21% to AED 350 per square foot per year. Grade B added 10% and stands at AED 230. Both figures are triple net: no VAT and no running costs.
The spread inside a grade is nevertheless enormous. In DIFC the average sits 13% above the market Grade A rate, in Downtown Dubai 20% above. Fitted offices are quoted at around AED 400 per foot in DIFC, 251 in Business Bay, 280 in Dubai Design District and 260 in The Greens — but those already include the service charge, so they do not compare directly with the triple net numbers.
Dubai Land Department, Q1 2025 · Dubai Land Department, H1 2025
What is paid on top of the rent
| Item | Order of magnitude | Comment |
|---|---|---|
| Base rent | AED 230–350 per sq ft per year | Grade B around 230, Grade A around 350 as a market average |
| Service charge | AED 15–35 per sq ft per year | Running the building. Usually already inside a fitted-office quote, never inside triple net |
| VAT | 5% | Charged on commercial rent, unlike residential |
| Deposit | 5–10% of the annual rent | Refundable, normally by cheque |
| Ejari / registration | from AED 200 | Compulsory on the mainland; DIFC has its own registration system |
| Broker commission | 5% of the annual rent | One-off on signing |
| Fit-out, if shell & core | from AED 250 per sq ft | Plus four to six months of unusable space |
The base rent is Dubai Land Department, Q1 2025. The other lines are established market practice rather than statistics: they depend on the building, the management company and the jurisdiction, and are fixed in the contract before signing.
Fitted or shell & core
Only about 40% of Dubai offices are offered fitted; the other 60% come as shell & core. It is a fundamental fork, and it costs money in both directions.
A fitted office is more expensive per foot, but you move in next week. A shell is cheaper, but the fit-out is added to the price along with four to six months during which rent is already accruing and the space cannot be used. On a short lease a shell almost never pays back; on a five-year one it usually does.
There is a market side effect too: fitted secondary space is appreciating faster than the rest, precisely because you can move straight in with no further outlay.
Tenant protection, and why the market seized up
Outside DIFC, RERA rules cap rent increases on renewal. In 2025 that mattered more than any comparison of locations: with rents up 45% on average over the year, companies overwhelmingly prefer to renew and keep the regulated increase rather than move at a new market price.
For the market that means stagnation: space does not come back into circulation, and anyone searching now has even less choice. Large institutional owners respond pragmatically, accepting terms in exchange for long leases. Individual block owners in Business Bay, meanwhile, ask prime DIFC rents — and the market sometimes pays them.
DIFC has its own law and its own lease register; the RERA formula does not protect you there. Build that into the negotiation on term and on the indexation cap.
Serviced offices and co-working
The shortage of conventional space pushed part of the demand into the serviced segment. Operators are expanding, new entrants are arriving from Egypt, Asia and the UK, and with no room left in the central business districts they are moving into malls, communities and semi-industrial areas. Around 61% of serviced offices sit in Grade A buildings.
AED per desk per month, excluding VAT. Dubai Land Department, Q1 2025
The main operators are RICE, The Executive Centre, iSpace, Space 1, Sentinel Business Centres and Unbox. In some locations a desk runs above AED 5,000 a month. The maths is simple: multiply the rate by headcount and compare it against a year's rent on a block of the size you need, plus the fit-out divided across the lease term.
What size block to go in on
The market is currently small-lot: 71% of enquiries in the first quarter of 2025 were for space under 5,000 sq ft. Small companies decide quickly and take a block that comes free before a corporate can get an internal move approved.
Hence the practical rule for a tight market: decide your size range and your ceiling rent in advance, and have the company documents and the signing decision ready. Good blocks in DIFC, Business Bay and Downtown go in days rather than months, and the landlord is the one negotiating, not you.
Dubai offices — the channel playlist
The furnished Rove HQ offices in Business Bay, the DIFC market and the AHS Office Tower, the city's prime towers.
7:59Investing in Dubai offices: why the numbers beat apartments
0:36AHS Office Tower, DIFC: the two-minute version
21:45Furnished offices in Business Bay: Rove HQ and the fitted-office model
10:32Lumena Alta by Omniyat: Dubai’s most luxurious office tower
1:15Binghatti Circle in JVC: retail and offices at the entry levelThe short answers
What does renting an office in Dubai cost?
In the first quarter of 2025 the average asking rent was AED 350 per sq ft per year in Grade A and AED 230 in Grade B — excluding VAT and service charge. For a 1,000 sq ft office that is roughly AED 350,000 a year plus service charge, VAT and the one-off payments on move-in.
Why are different rents quoted for the same district?
Because of what is inside the figure. Rent is quoted two ways: triple net — the rent alone, no VAT and no running costs — and fitted, a ready office with the service charge already inside. The gap between the two methods is tens of dirhams a square foot, so figures computed differently do not compare directly.
What is shell & core, and why is it cheaper?
It is space in the state of a concrete box: walls, windows and services brought to the unit, everything else done by the tenant. About 60% of Dubai offices are offered this way and only 40% fitted. It is cheaper because the fit-out cost and four to six months of downtime fall on the tenant.
Is a tenant protected from a sharp rent increase?
On the mainland, yes. RERA rules cap rent increases on renewal, and in 2025 that became the main argument for many companies to stay put rather than move: the market rose 45%, while a renewal runs through a regulated formula. DIFC operates its own law and that protection does not exist there.
Serviced office or a conventional lease?
A serviced office makes sense when the team is under ten people, the term is open-ended, or you need an address in a prestigious tower without a long lease. A desk in a quality serviced office cost AED 2,500–3,700 a month in the first quarter of 2025, and above 5,000 in some locations. Beyond two years and fifteen people, a conventional lease is almost always cheaper.
Find an office for your team
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