Looking to set up your office in Dubai effectively? Whether you aim to stay within budget or avoid being ripped off, you’re making a smart move.
Dubai’s welcoming business sector tempts many to start quickly. However, a well-planned start is key, given the city’s supportive business policies.
SpiderBC is here to help. Read on to learn about the typical costs and budgeting for an office in Dubai.
How Much Are Office Expenses in Dubai? A Detailed Breakdown
Now, there’s no exact number for the costs—there are different price ranges for offices, and there are even affordable ones with great amenities.
While it’s hard to pin down how much things would cost on average, you can get a good idea of how to manage your budget by considering all the parts of these expenses.
Let’s break all that down in this section.
Initial Rent
The base rent is calculated per square foot or meter, changing based on location, building quality, and amenities. Premium areas like Sheikh Zayed Road and Downtown Dubai cost more, while places like Al Barsha or Dubai Silicon Oasis are more budget-friendly. You’ll likely need to put down a security deposit, usually 1-3 months’ rent. Some centers offer perks like rent-free periods, so it pays to shop around.
Ejari Registration and Associated Legal Fees
You’ll need to register your lease with Ejari, costing about AED 220. Usually, you’ll cover this, but some centers might include it. Don’t forget about legal fees for sorting out your lease and contracts. These can add up, so factor them into your budget.
Utilities and Additional Office Services
You’ll be paying for electricity, water, and AC, either separately or as part of your package. The cost depends on your office size and energy use. Internet and phone services are essential – factor these in too. Parking might cost extra. Many business centers bundle these services, which can simplify your expenses.
Office Furnishing Costs
Furnishing costs can vary widely, from AED 250 to AED 1,000 per square foot, depending on how much you customize. This covers things like partitions, flooring, lighting, and furniture. Some business centers offer ready-to-use offices, which can save on fit-out costs.
Maintenance and Upkeep Expenses
Keeping your office in good shape is important—it reflects the overall health of your business. This includes AC servicing, equipment upkeep, and cleaning. Costs vary based on your office size and needed services. In business centers, basic maintenance is often included in your package, but always check the details.
Investment Into Business Licenses and Permits
Getting the right licenses and permits is vital, and it’ll cost you. Fees vary depending on your business type and location. Most of the time, you’ll need a trade license. Make sure to include these in your startup costs.
Administration and Reception Service Fees
Admin support and reception services can boost your professional image. In business centers, these often come with your package. Some places offer extras like meeting rooms, lounges, or gyms, but these might have additional fees.
Rental Office Price in Dubai
Now, you’ve got a big range of options to choose from. We’ll add basic overviews with the expenses included with each type of office so you know what you’re dealing with.
Serviced Office (AED 6000 to AED 7000)
Serviced offices are fully furnished and managed. The monthly fee covers rent, utilities, internet, and admin support.
Private Office (AED 7000)
Private offices offer exclusive spaces with more privacy. Tenants handle costs like rent, utilities, and maintenance.
Executive Office (AED 7000 to AED 9000)
Executive offices are high-end and fully furnished. Rent includes premium amenities like meeting rooms and concierge services.
Virtual Office (AED 375 to AED 900)
Virtual offices give you a business address and communication services without a physical space. They’re great for businesses that don’t need a permanent office.
Flexi Desk (Price Based On Usage)
Flexi Desks are flexible workspaces in coworking spaces. They are pay-as-you-go, ideal for occasional office use.
Coworking Office (AED 1200 to AED 2000)
Coworking spaces offer shared work environments with desks, meeting rooms, and common areas. They’re affordable for startups and small businesses but can have higher setup costs.
We have all of these offices, with prices ranging from a simple 375 AED all the way to 7000 AED—all at the lowest prices on the market. You can find more details about our offices for rent pricing here.
How Location Impacts Office Expenses in Dubai
Popular areas like Downtown Dubai, Business Bay, and DIFC are right in the heart of things, with great amenities and transport links, perfect for meetings.
For more affordable options, go for places like Sheikh Zayed Road, Dubai Silicon Oasis, and parts of Dubai Media City.
These areas give you more space for less money as they improve infrastructure.
Our offices are on Sheikh Zayed Road near Dubai World Trade Center. The perfect middle ground for networking and keeping expenses low.
Up-and-coming areas like JLT also have good locations and reasonable rents.
Your choice will affect your budget, company image, and how far your employees have to travel, so choose wisely.
Consider Long-Term Monthly Overheads for Your Office
Electricity, water, and air conditioning are ongoing expenses that depend on your office size and usage. Using energy-efficient systems can cut down these costs.
You’ll need to regularly service your HVAC systems and clean them though, to keep your office comfortable and functional.
Some landlords include basic maintenance, while others require you to arrange it.
If you’re not sure, you can look for small office spaces for rent in Dubai that are low on upkeep.
Include Legal and Licensing Fees in Your Office Budget
Starting a business in Dubai involves several fees. Here’s a quick rundown of the most important ones.
- Trade License: Needed to operate legally, costs vary by business type.
- Initial Approval from DED: Required to get your trade license.
- Name Reservation Fee: Ensures your business name meets local rules.
- Notarization of Memorandum of Association (MOA): Makes your company’s formation docs official.
Some business centers and free zones offer packages to assist with these processes, simplifying setup.
Unexpected Expenses: Hidden Costs to Watch Out For
Here’s a basic list of all the things that some companies leave out of the initial papers.
You can ask about all these upfront so they’re not quietly eating away at finances that could go towards advancing your business.
- Parking Fees: Monthly costs for parking in commercial areas can add up.
- Service Charges: Many office buildings charge for maintaining common areas, so clarify these fees before signing a lease.
- VAT: Office rentals and services are subject to a 5% Value Added Tax, so include this in your budget.
- Common Area Maintenance (CAM) Charges: Some leases include charges for keeping shared spaces like lobbies and corridors clean.
- Business District Fees: Prime business areas may have additional local fees or assessments.
- IT Infrastructure Costs: Setting up and maintaining internet and communication systems can be costly if not included in your lease.
Being aware of these hidden costs helps you avoid surprises and budget effectively.
How to Optimize Your Office Budget: Cost-saving Tips
If you’re trying to get the absolute best value out of your money, here are some tips we always tell our clients firsthand.
- Try serviced or coworking spaces to save money upfront and have more flexibility.
- Ask for better deals, like rent-free periods or help with setting up your office.
- Pick offices in growing areas with lower rents and good infrastructure.
- Share reception and administrative services to cut down on staffing costs.
- Save on utility bills with energy-efficient measures.
- If you’re a startup, use virtual offices to start your business without paying high rent for physical space.
Let’s Build Your Business Together With SpiderBC
Knowing these expenses will help you plan better and save a lot of money. With the right budget, your office setup can be smooth and efficient.
Have questions or need assistance with your office setup? You can reach us at +971 43827700 (Direct Call) or +971 557012754 (WhatsApp), or email us at info@spiderbc.com.
We can assist you with everything down to the licensing and planning the budget for your business.
