Best places to buy commercial property in Abu Dhabi

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If you are planning to open a business in Abu Dhabi or invest in commercial real estate, finding the right location for that specific purpose is crucial. The commercial real estate market in Abu Dhabi has several options for office space, warehouses, retail stores, as well as commercial plots. Due to the amount of options, we have taken a look into the best areas and individual complexes of the emirate, and detailed where is best to buy commercial real estate for your business.

The advantages of buying commercial real estate in Abu Dhabi

Despite that real estate, in general, is a valuable asset and less exposed to market fluctuations or inflation than securities, gold or other assets, it has some advantages over residential real estate, namely:

  1. This type of real estate has a limited supply with a fairly high demand. This is directly related to the fact that many international companies need an office, warehouse, co-working space and/or corporate apartments.
  2. ROI is much higher, although the exact figures are more difficult to establish because everything depends directly on the size of the unit/building, its class (A, B, C) and location. But in general, the ROI can be 2 times higher compared to the residential ROI, which is due to the much lower cost per 1 sq.ft.
  3. The price of capital is much higher, and the greater the cash flow generated by the property/unit, the higher the price of the asset itself.
  4. The lease agreement is concluded for a longer period of time, usually for 3, 5 or more years, which allows the owner to protect themselves from all kinds of downtime and/or negative market fluctuations.

Popular areas to purchase office spaces

The best places to buy commercial real estate in Abu Dhabi include Mussafah, Al Reem Island and Mohammed Bin Zayed City. Al Reem Island is the most popular place to purchase and rent commercial office spaces in the emirate. We have prepared a selection of the best buildings with offices for sale in this area.

Addax Port Office Tower

Addax Port Office Tower is situated in Addax Port and is a commercial tower with 68 floors. The Tower offers office spaces of various sizes and layouts with a modern design and views of the Persian Gulf, as well as landscaped gardens. Amenities in the commercial building comprise fully fitted storerooms, a huge lobby, high-speed elevators, a cafeteria, security and maintenance services as well as basement and podium parking spaces. Prices for shell-and-core offices in Addax Port Office Tower vary from AED 950,000 (USD 259,000) to AED 4,500,000 (USD 1,225,000), and range in areas from 1,527 sq.ft to 3,896 sq.ft. The purchase price for a 1,732 sq.ft fully equipped office is AED 1,700,000 (USD 463,000).

Oceanscape

Oceanscape is also a popular commercial building on Al Reem Island. The mixed-use development offers offices, retail spaces and apartments with excellent sea views. Amenities of Oceanscape include high-speed elevators, free parking, valet, security and maintenance services. The fully furnished offices in the development also come with one bathroom. The cost of office spaces in the Oceanscape building ranges from AED 500,000 (USD 136,000) to AED 950,000 (USD 259,000).

Sky Tower

Sky Tower was the highest building in the Abu Dhabi emirate after its completion in 2010, standing at 961-ft with 74 storeys. Parking spaces are available in the basement and outside the building and Shams Boutik Mall which has shops and restaurants is situated on the ground level of the Tower. Prices for shell-and-core offices in the development vary from AED 1.9M (USD 517K) to AED 4.7M (USD 1.2M). The minimum cost for fully-fitted offices constitutes AED 2M (USD 544K).

Popular areas to buy warehouses

Mussafah is the most popular location for purchasing warehouses in Abu Dhabi as owners and tenants are guaranteed a great infrastructure nearby, several entry points and good roads. In addition, the owners of warehouses in the Mussafah area have fast and easy access to the ports and Abu Dhabi International Airport.

The covered area for storage facilities in the area varies from 42,800 sq.ft to 75,756 sq.ft. The price ranges from AED 5M (USD 1.3M) to AED 16.5M (USD 4.5M). All warehouses in the Mussafah district have covered parking.

Popular areas for buying retail units

Oceanscape development on Al Reem Island is the most popular area to buy retail units in Abu Dhabi. The minimum covered area of available units in the Oceanscape complex is 279 sq.ft. and the starting price constitutes AED 250,000 (USD 68,000).

Al Raha Beach is another sought-after location for buying a retail unit in Abu Dhabi. With more than 53 million sq.ft. of white sandy beaches, Al Raha Beach is in high demand among investors and tourists. The top location for buying a retail unit in Al Raha Beach is Al Raha Lofts. The starting price here is AED 2M (USD 544K).

Popular areas for buying commercial plots

Al Reem Island once again becomes the best place among all other areas to buy commercial land in Abu Dhabi. The cost for commercial plots on Al Reem Island varies from AED 19M (USD 5M) to AED 36M (USD 9.8M). The covered area of land sites ranges from 20,585 sq.ft. to 54,328 sq.ft.

Shams Abu Dhabi is also a good location within the Al Reem Island area for buying commercial plots. The covered area of land sites here constitutes 20,585 sq.ft - 26,909 sq.ft. while the minimum price for commercial plots is AED 19M (USD 5M).

Other popular districts for buying commercial land are Mohamed Bin Zayed City and Al Shamkha.

Mohamed Bin Zayed City (MBZ City)

MBZ City is a nice location for purchasing commercial plots and setting up a business as the district is bound by a network of main highways and has convenient access to Dubai. Neighbouring areas of MBZ City include Mussafah, Zayed City, Khalifa City and Mafraq Industrial Area. Investors can choose from different sizes and locations of commercial plots in the Mohamed Bin Zayed City area. The sizes of plots vary from 5,600 sq.ft. to 40,000 sq.ft. Prices for commercial land in MBZ City range from AED 3.5M (USD 953K) to AED 10M (USD 2.7M).

Al Shamkha

Al Shamkha has a strategic location in close proximity to districts such as Madinat Al Riyad, Al Falah and Al Matar (Abu Dhabi International Airport area). There are several projects planned in the Al Shamkha neighbourhood as part of the 2030 vision for Abu Dhabi, and it will also add new commercial spaces to the area.

The cost for commercial land plots in Al Shamkha ranges from AED 1.1M (USD 300K) to AED 8.3M (USD 2.2M). The sizes of plots vary from 2,214 sq.ft. to 75,347 sq.ft.

Summary

  1. The best places to buy commercial property in Abu Dhabi include Mussafah, Mohammed Bin Zayed City and Al Reem Island.
  2. Al Reem Island is the most in-demand place to buy and rent commercial office spaces in the emirate.
  3. Commercial investors in Abu Dhabi prefer to purchase warehouses in the Mussafah area.
  4. The best place to buy retail units in the emirate is the Oceanscape development on Al Reem Island.
  5. Mohamed Bin Zayed City, Al Shamkha and Al Reem Island are the most popular areas for buying commercial plots in the emirate.

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