Rent or buy your office in Dubai: the 2026 numbers
With Dubai office rents up sharply over the last two years, more business owners are asking whether to buy their office instead of renewing a lease. The answer depends on price, timing and how long the business plans to stay. Here is a worked example using 2026 figures.
What renting costs now
Grade A office rents in Dubai rose about 16% in the year to the second quarter of 2026, according to CBRE, and occupancy sat around 94%. Asking rents for good Business Bay space in October 2026 ran from roughly AED 260 to AED 375 per sq ft a year, depending on the building and whether the space is fitted.
For a 12,000 sq ft floor at AED 250 per sq ft, that is AED 3 million a year in rent, before service charges and VAT. Rents reset at each renewal, so the figure can move in either direction.
What buying costs
An illustrative purchase of the same 12,000 sq ft at AED 4,750 per sq ft, the middle of the indicative range for Ellington's Business Bay tower:
| Item | Amount (AED) | Note |
|---|---|---|
| Purchase price | 57,000,000 | Illustrative; final launch pricing to be confirmed |
| Paid during construction (50%) | 28,500,000 | Spread over the build period |
| Paid on completion (50%) | 28,500,000 | Can often be part-financed once the building is complete |
| DLD registration fee (4%) | 2,280,000 | Plus administrative charges |
| VAT (5%) | 2,850,000 | Typically recoverable for a VAT-registered business using the space for its trade |
At those numbers, the current rent of AED 3 million equals about 5.3% of the purchase price each year. A business paying more for fitted Grade A space, say AED 350 per sq ft, would be paying the equivalent of about 7.4%. Owners also pay annual service charges and the cost of fit-out, which tenants of fitted space avoid.
When buying makes sense
- The business expects to stay in Dubai, and in a similar size of space, for ten years or more.
- Its current lease ends around the time a new building completes, so there is no double cost.
- It wants control over its space and fit-out, and protection from rent resets.
- It has, or can raise, the capital for construction-stage payments without straining working capital.
When renting is still better
- Headcount is likely to change sharply, up or down.
- The business needs its capital for growth rather than property.
- It needs space within the next year or two; off-plan towers deliver several years out.
The middle route
Some owners buy now as an investment and decide later whether to occupy. Until completion, the asset is simply an investment with deferred payments; at handover, the business can move in or let the space to another company. Ellington's Business Bay office tower offers full floors of 10,500 to 11,500 sq ft, half floors and individual offices on a 50/50 plan, with indicative handover in 2031.
This is general information, not tax, accounting or financial advice. Take advice on your own business's position.
Sources
- Gulf News, Dubai rents ease 6.2% while home prices stay above 2025 levels (CBRE Q2 2026)
- JLL listing, Magnum Opus Bay, Business Bay (office to rent)
- JLL listing, Regal Tower, Business Bay (office to rent)
- Khaleej Times, Dubai office rents stabilise as demand for Grade A space stays strong (Savills, July 2026)
Register for the Ellington Business Bay office launch
Expressions of interest close on 19 October 2026. Securing an EOI requires a payment of AED 100,000 and a copy of your passport. Register below and the team will send you the EOI pack and next steps.
Register your interest
EOI closes 19 October 2026. Register now for the EOI pack, pricing and floor plans.