Commercial Fit‑Out Costs in Dubai: Office, Retail, F&B, and Warehouse Benchmarks
Commercial fit-out costs in Dubai typically range from AED 150 to AED 800+ per square foot, depending heavily on the asset type and finish quality. While a basic warehouse upgrade may cost as little as AED 100 per sq ft, premium office spaces and luxury F&B outlets often exceed AED 1,000 per sq ft due to complex MEP (Mechanical, Electrical, and Plumbing) requirements and high-end materials. Understanding these benchmarks is critical for investors calculating the true ROI of a shell and core acquisition.
The Economics of Commercial Fit-Outs in Dubai
For investors and business owners in the UAE, the “sticker price” of a commercial property is just the beginning. Whether you are acquiring a shell and core unit in Business Bay or upgrading a retail space in Dubai Marina, the fit-out process represents a significant capital expenditure (CAPEX) that directly impacts your yield.
In Dubai’s competitive real estate market, a high-quality fit-out is not merely an aesthetic choice; it is a strategic asset. Well-designed spaces lease faster, command higher rents per square foot, and retain tenants longer. However, navigating the costs—which span design fees, authority approvals, construction, and furnishings—can be daunting without a clear baseline.
This guide provides accurate, market-derived benchmarks for 2025 to help you budget effectively.
2025 Cost Benchmarks by Property Type
The following estimates include design, MEP works, partitions, flooring, ceilings, and standard approvals. They typically exclude loose furniture and specialized IT equipment unless stated.
1. Office Spaces
Office fit-outs vary drastically based on the “grade” of the building and the tenant’s brand requirements.
Standard / Budget (AED 180 – AED 300 per sq ft): Ideal for back-office operations or startups. Includes standard partition walls, carpet tiling, basic lighting, and functional MEP adjustments.
Mid-Range (AED 350 – AED 550 per sq ft): The most common bracket for corporate HQs in Dubai. Features glass partitions, acoustic solutions, branded reception areas, and upgraded flooring (LVT or parquet).
Premium / Luxury (AED 600 – AED 900+ per sq ft): Required for executive offices, law firms, or luxury agencies. Includes custom joinery, marble or stone finishes, high-end automation, and intricate lighting design.
2. Retail and Showrooms
Retail costs are driven by the need for visual impact and customer flow.
Standard Boutique (AED 250 – AED 450 per sq ft): Suitable for apparel or service-based retail in community malls.
High-End Retail (AED 550 – AED 1,200+ per sq ft): Luxury boutiques in locations like Dubai Mall or Palm Jumeirah. High costs are attributed to imported materials, security systems, and specialized lighting to showcase products.
3. Food & Beverage (F&B)
Restaurants and cafes are the most expensive asset class to fit out due to heavy MEP loads (grease traps, extraction hoods, gas lines) and strict hygiene regulations.
Café / QSR (AED 450 – AED 750 per sq ft): For coffee shops or quick-service restaurants with limited hot kitchen requirements.
Full-Service Restaurant (AED 800 – AED 1,500+ per sq ft): High-capacity kitchens, specialized fire suppression systems, and designer dining areas drive these costs up significantly.
4. Warehouses and Industrial
Basic Industrial (AED 75 – AED 150 per sq ft): Includes flooring epoxy, basic office mezzanine, and high-bay lighting.
AC / Cold Storage (AED 200 – AED 400 per sq ft): Significant costs go toward insulation, industrial HVAC units, and power load upgrades.
Featured Image
Image Prompt: Photorealistic interior shot of a modern, premium office in Dubai Downtown at sunset. Floor-to-ceiling glass windows show the Burj Khalifa and city skyline in the background. The office features sleek glass partitions, warm wood paneling, contemporary ergonomic furniture, and soft ambient lighting. Professional, architectural photography style, 16:9 aspect ratio. Negative prompt: construction site, rubble, unfinished walls, people, logos, text, watermarks.
Alt Text Option 1: Modern luxury office interior in Dubai Downtown with Burj Khalifa view.
Alt Text Option 2: Premium commercial office fit-out design with glass partitions and skyline views.
The Cost Breakdown: Where Does the Money Go?
Understanding the allocation of funds helps in negotiation and value engineering. In a typical Dubai commercial project, your budget splits roughly as follows:
| Cost Component | Percentage of Budget | Notes |
| Construction & Finishes | 55% – 65% | Walls, floors, ceilings, and joinery. |
| MEP Services | 20% – 30% | AC, electrical, plumbing, fire safety. Higher for F&B. |
| Design & Consultancy | 8% – 12% | Architects, MEP consultants, and project managers. |
| Authority Approvals | 3% – 5% | Dubai Municipality, Civil Defence, DEWA fees. |
| Contingency | 5% – 10% | Buffer for unforeseen site conditions. |
The “Hidden” Costs: Approvals and Regulations
Dubai has a stringent regulatory environment to ensure safety and quality. Ignoring these fees often leads to budget overruns.
Authority Fees and NOCs
Before a single hammer is swung, you must obtain a No Objection Certificate (NOC) from the developer (e.g., Emaar, Nakheel, Dubai Properties) and the relevant licensing authority.
Dubai Municipality (DM): Reviews architectural and structural drawings.
Dubai Civil Defence (DCD): Mandatory for fire safety compliance. This is critical; failing DCD inspection will delay your trade license.
DEWA: Approvals for electrical loads and water connections.
Zone-Specific Authorities: If your office is in JLT, you deal with Concordia; in Tecom/Media City, you deal with DDA (Dubai Development Authority).
Condition of Handover
The state of the unit you buy or lease dictates your starting point.
Shell and Core: Concrete floors and ceilings with no MEP distribution. You pay for everything from scratch.
Cat A Fit-Out: Basic finishing (raised floors, suspended ceilings, basic AC). You only need to add partitions and branding.
Cat B Fit-Out: Fully fitted space that may just need renovation.
When browsing properties for sale in Dubai, it is vital to check the handover condition. A cheaper shell and core unit might end up costing more overall than a slightly pricier fitted unit once construction costs are factored in.
Steps to a Successful Commercial Fit-Out
Define Your Requirements: Determine headcount, workflow, and brand needs.
Select the Right Asset: Consult with agents to find a space that supports your technical needs (e.g., sufficient power load for a server room or kitchen). You can explore our off-plan projects in Dubai for new commercial launches that offer modern infrastructure.
Hire a Consultant: Engage an interior design agency that understands local codes.
Tender the Works: Get quotes from at least three contractors. Ensure they are licensed for the specific jurisdiction (e.g., DDA vs. Mainland).
Secure Approvals: Your contractor typically handles the logistics with the Dubai Municipality and other bodies, but you are responsible for the fees.
Construction & Monitoring: Regular site visits are essential.
Handover & Snagging: Ensure all defects are fixed before making the final payment.
Common Pitfalls for Investors
Underestimating MEP Costs: In older buildings, upgrading the AC system or electrical load to modern standards can be prohibitively expensive.
Ignoring Reinstatement Clauses: Most leases require you to return the office to its original shell and core state when you leave. You must budget for this “make-good” cost at the end of your tenancy.
Timeline Delays: Authority approvals can take 2–6 weeks. Factor this into your rent-free period negotiations.
Advanced Tips: Maximizing ROI
For landlords, the goal is to maximize rental yield. A strategic fit-out can increase the property’s market value and appeal to premium tenants.
Plug-and-Play Offices: There is high demand for fully furnished, ready-to-move offices. Landlords who invest in a Cat B fit-out can often command a 20–30% rental premium over shell and core units.
Sustainable Materials: Green building practices are gaining traction. Using energy-efficient LED lighting and smart AC controls can lower DEWA bills, making the property more attractive to tenants. Reports from JLL indicate a growing premium for sustainable commercial spaces in the region.
Why Partner with West Gate Dubai?
Navigating the commercial real estate market requires more than just finding a space; it requires understanding the technical and financial implications of that space. At West Gate Dubai, we go beyond simple listings. We assist investors in identifying properties with the right technical specifications to minimize fit-out risks.
Once your asset is ready, our dedicated property management team can handle tenant acquisition, maintenance, and lease renewals, ensuring your investment delivers passive income without the operational headache. Whether you are looking for a retail shop in a high-footfall area or a boutique office, we have the market intelligence to guide you.
We have access to a vast inventory of commercial options beyond what is listed online. To discuss your specific requirements, fill out the form on our website and a professional agent will contact you to arrange a consultation.
FAQs
What is the average cost of an office fit-out in Dubai?
The average cost ranges from AED 250 to AED 500 per sq ft for a standard to mid-range specification. Luxury offices with high-end finishes can easily exceed AED 800 per sq ft.
How long does a commercial fit-out take?
A standard office fit-out typically takes 8 to 12 weeks from design to handover. Larger or more complex projects, such as restaurants, may take 16 to 24 weeks due to the extensive approval process involved.
Do I need Dubai Civil Defence approval for my office?
Yes, Dubai Civil Defence (DCD) approval is mandatory for all commercial fit-outs to ensure fire safety compliance. Your contractor must submit the fire safety drawings and obtain a completion certificate before you can operate.
Can I finance the fit-out costs?
While mortgage financing typically covers the property purchase, some banks offer business loans for CAPEX improvements. Alternatively, some landlords may offer a “tenant improvement allowance” as an incentive, contributing to the fit-out costs in exchange for a longer lease.
Start Your Commercial Journey Today
Choosing the right property is the first step toward controlling your fit-out costs. A unit with existing high-quality flooring or modern AC infrastructure can save you hundreds of thousands of Dirhams.
Whether you are looking to buy a shell and core office or lease a fully fitted retail unit, our team is ready to assist. Browse our current properties for rent in Dubai or get in touch for a bespoke property search.
We have a lot more properties available than what you see online. Please fill the form and a professional Agent will contact you to help you find the perfect commercial asset.
