Muhalab Adam - Dubai Real Estate Intelligence Platform

Muhalab Adam

Description

A fully tenanted, freestanding G+4 labour accommodation building in Dubai Investment Park 2 (DIP 2) is offered for sale at AED 55,000,000 (net to owner). Spanning a total built-up area of 82,148.79 sq ft on a 32,345 sq ft plot, the facility houses 185 rooms — comprising 6 master/supervisor rooms and 179 standard staff rooms — and operates under a secured 5-year corporate lease with contractual rent escalation.

The listed indicative annual rent stands at AED 10,000,000, escalating contractually to AED 10,500,000 under the terms of the existing lease agreement. The seller's stated return on investment is 18.18% on the asking price — buyers are encouraged to review published Dubai commercial cap rates and net yield benchmarks for 2026 to contextualise this figure against the broader market before proceeding.

Building infrastructure is comprehensive: a dedicated commercial kitchen and dining hall, common shower and toilet blocks, modern high-speed elevators, an integrated fim system with Civil Defense approval, dedicated staff-bus parking with transport access, and 24/7 facility management and security. The asset is operational and income-producing from day one of ownership.

Location and connectivity are central to the investment thesis. Dubai Investment Park 2 sits at the intersection of Expo Road (E77) and Sheikh Mohammed Bin Zayed Road (E311), with direct access to Al Maktoum International Airport (DWC) — a corridor that continues to attract industrial, logistics, and manufacturing tenants driving sustained demand for compliant workforce housing in the zone.

Acquisition cost structure (payable by buyer): a 2.5% DIP transfer fee, a Dubai Land Department transfer fee of 4% of the total balance leased amount or sale value (as applicable), and VAT as applicable. Buyers should review the VAT obligations on Dubai commercial property transactions before signing heads of terms, as the treatment can vary depending on transaction structure. The annual land lease is payable by the owner to Dubai Investments Park on an ongoing basis — buyers should factor this into net-yield modelling.

For investors evaluating the full spectrum of commercial real estate asset classes available in Dubai, labour accommodation in a master-planned free zone such as DIP 2 represents a distinct sub-sector: tenants are typically large corporates with long contractual commitments, and the regulatory framework governing workers' accommodation sets a high barrier to competing supply. This building holds Civil Defense approval and an operating track record that new entrants cannot replicate quickly.

This listing sits within the commercial property portfolio on the platform. Buyers seeking alternative commercial or income-producing assets across Dubai can browse the full live inventory for available options.

Frequently Asked Questions

›What is the asking price for this labour camp in Dubai Investment Park 2?

The asking price is AED 55,000,000, stated net to the owner. Additional acquisition costs payable by the buyer include a 2.5% DIP transfer fee, a Dubai Land Department transfer fee of 4% of the total balance leased amount or sale value (as applicable), and VAT as applicable.

›Is the building currently occupied, and how long does the existing lease run?

Yes. The building is fully tenanted under a secured 5-year corporate lease agreement that includes contractual rent escalation provisions. The listed indicative annual rent is AED 10,000,000, escalating to AED 10,500,000 under the lease terms.

›What is the building's total size and room configuration?

The building has a total built-up area of 82,148.79 sq ft across a Ground + 4 floor (G+4) structure, situated on a 32,345 sq ft plot. It contains 185 rooms in total: 6 master/supervisor rooms and 179 standard staff rooms.

›What compliance certifications does the building hold?

The building is Civil Defense approved and is equipped with an integrated fim system. It also features modern elevators, a commercial kitchen, and dedicated staff-bus parking. Buyers should independently verify all current regulatory certifications during their due-diligence process.

›How does the location of DIP 2 benefit this type of asset?

Dubai Investment Park 2 offers direct connectivity to Expo Road (E77), Sheikh Mohammed Bin Zayed Road (E311), and Al Maktoum International Airport (DWC). This positions the facility at the heart of Dubai's industrial and logistics corridor, where corporate demand for compliant workforce housing remains consistently high.

›What is the land tenure structure, and does an annual land lease apply?

The property sits on land leased from Dubai Investments Park. An annual land lease fee is payable by the owner to DIP on an ongoing basis. Prospective buyers should obtain full details of the land-lease agreement and factor the recurring cost into their net-yield calculations before making an offer.

›How should I assess whether the 18.18% ROI figure is accurate?

The 18.18% return on investment is the seller's stated figure, derived from the listed indicative annual rent of AED 10,000,000 divided by the AED 55,000,000 asking price. Buyers should independently verify the lease documentation, confirm actual net income after the annual land lease and any operating expenses, and review published Dubai commercial cap-rate data to benchmark this yield against comparable assets in the market.