Setting up an office in Dubai usually means choosing between a flexi-desk, a serviced office and a leased office. The right choice depends on your licence, visa needs and team size. Mainland companies need a leased office or similar premises registered with Ejari, while free zone companies can often use a flexi-desk. A 300 sq ft leased office costs roughly AED 27,000 to AED 45,000 a year in rent in popular business areas, before service costs and fit-out.
This guide compares your options, what offices cost by area, and how to avoid paying for space you do not need. Rents are published averages as of 2026 and individual buildings vary, so use them to compare areas rather than to budget a specific unit.
Your Office Options in Dubai
| Option | Best for | Watch out for |
|---|---|---|
| Flexi-desk | Free zone startups and solo founders | Few visas; some banks may ask for more evidence of substance |
| Co-working | Small teams wanting flexibility | Check that it gives you a valid registered address for your licence |
| Serviced office | Teams wanting a ready, furnished office | Higher rent per sq ft than a plain lease |
| Leased office | Established teams and mainland companies | Fit-out, deposits and a longer commitment |
| Instant licence (no office in year one) | Eligible low-risk mainland activities | You still need an office at renewal |
Not sure if you need one at all? Read do you need a physical office to set up a company in Dubai and our guide to the instant licence in Dubai.
Office in Dubai: Rent by Area
Sources measure rents differently. Savills put the citywide average at AED 238 per sq ft in Q1 2026, while Cavendish Maxwell put it at AED 189 in the first half of 2026. District averages from Engel & Völkers show how much location matters. The last column is our simple calculation for 300 sq ft.
| Area | Average rent per sq ft a year | 300 sq ft a year (estimate) |
|---|---|---|
| Downtown Dubai | About AED 367 | About AED 110,100 |
| Business Bay | About AED 151 | About AED 45,300 |
| Jumeirah Lakes Towers | About AED 135 | About AED 40,500 |
| Dubai Silicon Oasis | About AED 89 | About AED 26,700 |
| Deira | About AED 87 | About AED 26,100 |
| Al Quoz | About AED 85 | About AED 25,500 |
Rents have risen quickly: Cavendish Maxwell recorded a 14% annual rise in the first half of 2026, although Savills reported rents flat in Q1, the first pause since 2021. New supply is planned, but construction delays are common, so do not count on rents falling soon.
What a Leased Office Really Costs
Rent is only the first line. Ask for each of these in writing:
- Security deposit, set out in your lease.
- Agency fee, if you use a broker.
- Ejari registration of the tenancy contract.
- Fit-out, as many offices come as shell and core. This can be the largest upfront cost.
- Utilities and cooling. Check whether chiller charges are included.
- VAT at 5% on commercial rent, which a VAT-registered business can often recover.
- Payment terms. Landlords may ask for one or a few cheques a year, which affects your cash flow.
For a full budget including your licence and visas, see how much it costs to set up a company in Dubai.
How Your Office Affects Visas and Banking
Your office is not just an address. Two things depend on it:
- Visa quota. The number of visas you can get is commonly linked to your office. A flexi-desk may allow only a few. Confirm the exact allocation with your licensing authority before you sign.
- Bank account. Banks look for real substance. A lease does not guarantee approval, but it can help. See UAE corporate bank account opening.
Also check that your activity is allowed at the premises. A trading company with stock, for example, may need a warehouse. See our guide to the general trading licence in Dubai.
How to Set Up an Office in Dubai, Step by Step
- Choose your licence and jurisdiction first. They decide what office you need. Read free zone vs mainland.
- Work out your visa needs for the next two years, not just today.
- Set a total budget, including fit-out and deposits.
- Shortlist areas by where your staff, customers and parking need to be.
- Check the unit is approved for commercial use and suits your activity before you sign.
- Sign the lease and register it with Ejari, then use it for your licence and visas.
Common Mistakes
- Signing a lease before the licence is planned. The office may not suit your activity.
- Paying for more space than you need. Start small if your visa needs allow it.
- Ignoring fit-out time. Rent may start before you can move in, so negotiate a rent-free period.
- Choosing on rent alone. A cheaper area may cost you in staff commutes and customer access.
Plan Your Office With Your Licence
Tell us your activity, team size and visa plans. We will recommend the smallest office that works, and itemise it with your licence and visa costs for year one and year two. Contact SMS Consulting or use our cost calculator.
Sources
Rents from Engel & Völkers, Savills via Middle East Info and Cavendish Maxwell via Khaleej Times. The estimates per office are our own calculations.
Frequently Asked Questions
Published average rents range from about AED 85 per sq ft a year in Al Quoz to about AED 367 in Downtown Dubai. A 300 sq ft office would be about AED 27,000 to AED 45,000 a year in areas such as Dubai Silicon Oasis or Business Bay, before fit-out and other costs.
Mainland companies generally need a leased office or similar premises registered with Ejari. Free zone companies need a registered address, which can often be a flexi-desk. Some eligible instant licences defer this to renewal.
A flexi-desk in a free zone is usually the cheapest, but it often allows few visas. Compare the price with your visa needs before choosing.
It is commonly linked to the size and type of your office and varies by authority. Confirm your allocation in writing before you sign a lease.
Commercial rent is generally subject to 5% VAT. A VAT-registered business can often recover it, subject to the normal rules.
Ejari is Dubai's system for registering tenancy contracts. A registered lease is usually needed for mainland licences, visas and related approvals.