Commercial Plots
Freehold and leasehold commercial land — build-to-suit or long-term hold, ideal for developer-investors.
Market Indicators (Dubai 2025-2026)
| Indicator | Value | Note |
|---|---|---|
| Price per sqft | AED 400 – 2,500 | Depends on FAR & location |
| Rent per sqft | N/A (land) | Development required |
| Cap Rate | IRR 12-18% (build-to-hold) | 5-year build + hold model |
| Occupancy | Post-completion | Underwrite against comps |
| WAULT | N/A | Development play |
Target Audience
Developer-investors, land bankers, and corporate build-to-suit buyers.
Suitable Dubai Areas
Asset Overview
Commercial plots offer the highest IRR potential in Dubai commercial real estate but carry development risk (permitting, contractor, market timing). Free-zone plots (JAFZA, DAFZA, DIC) offer 100% foreign ownership + tax benefits. Mainland plots require DED trade licence for tenants.
Typical Lease Structure
Freehold plots (foreigners allowed in designated zones) or leasehold (10-99 year lease from government). Development timeline: DDA/DM approvals 6-12 months, construction 18-30 months.
Considering Commercial Plots?
Get a detailed analysis of this asset class including specific available deals, market-wide comparables, and a strategic recommendation.
Note: UAE commercial property is subject to 5% VAT on sale and lease. Information provided is general and not legal or tax advice.
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