Logo
  • Order call
  • Call management

Property type
No. of bedrooms
Area
Show offers

Offices and retail rents in Dubai’s free zones suspended for 6 months

05.04.2020
Offices and retail rents in Dubai’s free zones suspended for 6 months
Even private landlords are now forced to provide their tenants with rental free periods for up to six months.

Due to the fact that Dubai free zones now offer rent-free periods for up to six months for offices, shops and other commercial properties, private landlords owning leasable commercial premises are now forced to provide incentives and discounts, sometimes even better than those provided by the management of free economic zones. At the very least, private homeowners will now have to review rent payments and charge them in installments, as is now happening in free zones.

The decree for rent free period for six months now applies to all free economic zones and came into force on April 1.

Earlier, DMCC, Dubai’s free zone management company in Jumeirah Lake Towers (JLT), announced a 100 per cent cut on office sharing permit fees and on company “reinstatement”. In addition, a 30 per cent discount is provided upon license renewal. To date, about 17,000 companies are registered within DMCC.

Overall, Dubai’s and the UAE’s free zones now offer much more favorable rates for office spaces and coworking rentals, than those offered by private operators, local and international. This is especially true for startups.

In the UAE, there are 19 free zones that offer 57 decent options for startups to test the ground. Free zones also have another advantage — a work licenses provided, while private business centers can provide only office space, but not a license.

Which Dubai free zones offer the best options for business operation?

The expenses for the first year of the company’s performance start from AED8238 in Ajman Media City free zone, and reach up AED81,395 in DMCC. (This was before DMCC announced a 6 months rent-free period at the end of last week.) Another Dubai’s free zone Dtec (Dubai Technology Entrepreneur Campus) in the Dubai Silicon Oasis area offers the cheapest option — the first year at a price of AED20 395 (and then even AED16 075) for startups in the field of IT services.

PACKAGES OF ANTI-CRISIS ASSISTANCE TO TENANTS IN THE DUBAI’S FREE ZONES

  • DMCC will not charge rentals for outdoor retailers at Jumeirah Lake Towers (JLT) for a certain period of time under existing contracts where the DMCC is the owner/landlord of the building. Also, free rent for two months will be guaranteed for commercial enterprises, which were affected by the latest Dubai directive, requiring the temporary closure of their business.

  • There will be no rents charged during 3 months from flexi-desk tenants (“virtual offices”) in DMCC, and for office tenants in the DMCC Business Center. Tenants in the DMCC Business Center can also choose to pay rent on a monthly or quarterly basis, but with no discount in this case.

  • AED 5000 — this license fee is set for young entrepreneurs in Ajman Free Zone.

Many Dubai’s free zones do not require a personal presence and audit, which saves investors time and money. However, most of the offers aimed to help tenants are targeted at new tenants, although it is not yet clear how the new incentives will work for existing tenants.

Taking to account the fact that free economic zones of Dubai now provide free rent for 6 months, what should private landlords of commercial properties do? Some already provide three-month rent-free periods, which can be extended upon lease agreements renewal.

In addition, market sources say that due to offering reduced licensing and other fees, owners of commercial spaces in the public sector have an advantage. With more office space coming to the market in free zones, new measures will become an additional incentive for many tenants to move there. In the current period of high demand for offices, even a slight economic benefit for tenants can be crucial.

To always stay up to date with the latest analytics data and real estate prices in Dubai, subscribe to our newsletter using the form below. Our contacts:

Tel. in Dubai, UAE: +971 (50) 2528188 (Whatsapp, Viber, Telegram)

Toll Free Dubai: 800-IMEX (800-4639)

IMEX REAL ESTATE BROKER LLC, UAE

Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE

Email: pm@IMEXre.com


Latest Availability
RENT
125,000 / year
Ref.No: OF1209
Office
1,655 ft2
76 AED/ft2
RENT
58,500 / year
Ref.No: OF662
Office
1,300 ft2
45 AED/ft2
SALE
730,000
Ref.No: AP165
Studio Apt
630 ft2
1,159 AED/ft2
Latest property news
Send us an enquiry or request a call back
Your name *
Phone
E-mail *
Your message *
*- indicates required
Request a call back
SOGA1  SOGA2
Call management
SOGA1  SOGA2
Lease process (Rent out)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.
Real estate search.

Up to 5 days

Real estate search.

Selection of optimal options.

Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Property Selection

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Customer charges:
  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration
Additional services:

Property management

Sales Process
Contract of the lessee and agency.

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership
Ad placement

1 day

Ad placement:
  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.
Signing of the lease agreement

Up to 2 days

Signing of the lease agreement
Expenses of the seller:

None

Additional services:

None

the management process
Contract of the owner and agency

1 hour

Contract of the owner and agency
Rendering of management services

1 year

Rendering of management services
Reporting

1 day

Reporting
Expenses of the owner:

5% of the annual rental price

Additional services:

None

Investment Process
Contract of the tenant and agency.

1 hour

Contract of the tenant and agency.
Selection of optimal investment options

From 3 days

Selection of optimal investment options
Registration of the contract of purchase / sale

1 Week

Registration of the contract of purchase / sale
Expenses of the investor:
  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration
Additional services:

Property management