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First-year cost

What renting a warehouse in Dubai really costs

The rent is only part of the first year. Here is every other amount, the tax included — what it is, who sets it and when it is paid, drawn to scale — with a calculator you can change and what warehouses actually let for, area by area.

The short answer, for a typical Dubai warehouse

The typical warehouse let in Dubai is about 3,910 sq ft at AED 60 a sq ft a year — a rent of about AED 235,000 a year. On top of it come 5% VAT (AED 11,750), Ejari (AED 220), the DEWA connection (from AED 155) and two refundable deposits — the landlord’s and DEWA’s — plus the agency fee. On DREC land, DREC’s 20% sub-lease fee comes too: AED 49,350 with its VAT, paid in full at signing.

From 746 warehouse leases registered with Dubai Land Department, to September 2026 · the Rent Guide

Fees as the authorities publish them, each linked · checked 22 Oct 2026

Amount by amount

Everything you pay in the first year

In the order it is paid, drawn to scale for the typical Dubai warehouse. Where no authority sets an amount, it is agreed — and we say so rather than quote a “usual” figure.

Typical Dubai warehouse · AED 235,000 a year

The unit’s land
123456789101112end155,10058,75058,75058,750back 25,500SignM4M7M10End

Typical Dubai warehouse · AED 235,000 a year

The unit’s land
123456789101112end155,10058,75058,75058,750back 25,500SignM4M7M10EndAED 235,0004 cheques of 58,750
Day one
AED 155,100
First year
AED 333,725
Back at the end
AED 25,500

At signing

The first payment, and the cheques for the rest of the year

01

The rent

Agreed with the landlord

AED 235,000 a year for the typical Dubai warehouse — 4 cheques of AED 58,750, in months 1, 4, 7, 10

The largest amount by far, and the one you can negotiate. The first cheque is cashed at signing; the others are post-dated through the year. What warehouses actually let for in each area is further down, from the leases registered with Dubai Land Department.

Set by:
You and the landlord
When:
In cheques through the year — 1 to 12, all handed over at signing

AskWill you take fewer cheques for a better rent?

02

VAT on the rent

5% of the rent

AED 11,750 for the typical Dubai warehouse, all at signing

Leases of commercial property are taxed at the standard 5% rate; homes are generally exempt. A VAT-registered landlord adds it to the rent and to any service charge.

Set by:
Federal Tax Authority
When:
With the rent — the year’s at signing, or with each cheque

AskIs the rent quoted with or without VAT?

Source: FTA

03

DREC’s sub-lease fee — the “tax”

Units on DREC land

20% of the rent, plus 5% VAT on it

AED 47,000 + AED 2,350 VAT for the typical Dubai warehouse — on a tax-free unit, nothing

DREC leases out Dubai’s government-owned land, and a unit sub-let on it carries DREC’s fee: 20% of the contract’s value, paid in one go — DREC takes no instalments — before it issues the Ejari. Listings call it the DREC, municipality or wasl tax. A unit without it is listed as tax-free.

Set by:
Dubai Real Estate Corporation (DREC)
When:
At signing, in full — before the Ejari is issued

AskIs the land DREC’s — is there a 20% fee on top of the rent?

Source: DREC · DREC payment

04

Security deposit

Refundable

Agreed in the contract

AED 23,500 at 10% for the typical Dubai warehouse

Dubai’s tenancy law lets the landlord take a security deposit and requires it back — or what remains after any damage — when the lease ends. The law sets no amount: it is whatever the contract says.

Set by:
You and the landlord
When:
At signing

AskHow much is the deposit, and what can be taken from it?

Source: Dubai Law 26 of 2007

05

Agency fee

Agreed with the broker

AED 11,750 at 5% for the typical Dubai warehouse

Dubai Land Department’s rule: a broker’s commission is what the agreement says (Law 85 of 2006), and only where nothing was agreed does the prevailing custom apply. Agree it in writing before the first viewing.

Set by:
You and the broker
When:
At signing

AskWhat is the fee, and is it in writing?

Source: DLD

06

Service or admin charge

Compounds and managed buildings

The landlord’s, if any

Some compounds charge a yearly service or admin fee on top of the rent. Ask for it in writing before you agree the rent; VAT applies to it as to the rent.

Set by:
The landlord
When:
Usually yearly, at signing

AskIs there a service or admin charge on top of the rent?

Source: FTA

With and after the Ejari

Registration, power and any works

07

Ejari registration

AED 220 at a trustee centre · AED 177.75 online

AED 220 at a trustee centre

Every lease in Dubai is registered on Ejari: AED 100 for the registration, AED 10 knowledge and AED 10 innovation fees, plus the service partner’s fee. You need the Ejari number to connect DEWA and to licence the business at the address.

Set by:
Dubai Land Department
When:
After signing

AskWho registers the Ejari, and how soon after signing?

Source: DLD Ejari service

08

DEWA deposit

Refundable

Set by DEWA for the premises

AED 2,000 in the drawing — DEWA sets the real figure

For homes DEWA publishes fixed deposits; for non-residential premises — a warehouse — it calculates the deposit from the premises’ consumption, so there is no single figure. It is refunded when you close the account.

Set by:
DEWA
When:
With the move-in request

AskWhat is the connected load, and is the supply live?

Source: DEWA

09

DEWA connection

AED 125 (small meters) or AED 300 (large), plus AED 30

AED 155 on small meters · AED 330 on large

The connection fee depends on the meters: AED 125 for small meters, AED 300 for large ones, plus AED 10 each in registration, knowledge and innovation fees. A warehouse on a large supply is on large meters.

Set by:
DEWA
When:
With the move-in request

AskAre the meters small or large?

Source: DEWA

10

Fit-out approvals

Only if you build offices, partitions, racking or new power

Set by the authorities, by the works

Fit-out works need approval before they start, and fire safety is checked before the trade licence is issued. The fees depend on what you build — get the contractor to quote them with the works.

Set by:
Dubai Municipality and Dubai Civil Defence
When:
Before the works start

AskWhich of the works need approval, and who applies?

Source: Administrative Resolution 85 of 2019 · Dubai Law 4 of 2025

Tax

The tax on a warehouse lease, and what tax-free means

Two can apply. VAT always does on a commercial lease. DREC’s 20% sub-lease fee — what listings call the tax — applies only on DREC land, and is paid in full at signing.

The same rent, for the typical Dubai warehouse, as two leases

Tax-free unit · VAT only

AED 246,750 105% of the rent

Day one AED 105,750 · first year, all in, AED 284,375

On DREC land · the fee and its VAT, all at signing

AED 296,100 126% of the rent

Day one AED 155,100 · first year, all in, AED 333,725

  • Rent
  • VAT on the rent · 5%
  • DREC’s fee · 20%
  • VAT on the fee

  • VAT

    5%

    • On every commercial lease: the rent, any service charge and DREC’s fee.
    • Added to the rent by a VAT-registered landlord; DREC invoices it on its fee.
    • Homes are generally exempt; warehouses, showrooms and offices are not.

    Source: FTA · DREC

  • DREC’s sub-lease fee

    20%

    • 20% of the contract’s value, paid to DREC, which approves the sub-lease.
    • Paid in full, by card or manager’s cheque — no instalments, so it is not split across the rent cheques.
    • Paid before the Ejari: DREC emails the tenant’s Ejari within 48 hours of the payment.
    • A renewal is paid and registered through DREC again.
    • Waived where the main leaseholder holds at least 50% of the tenant’s trade licence.

    Source: DREC · DREC payment · DREC renewal

  • Which units carry it

    • Only units on DREC land. Its portfolio spans Al Quoz, Ras Al Khor, Al Qusais, Jebel Ali, Muhaisnah, Umm Ramool, Al Warsan and Sheikh Zayed Road — not every plot in them.
    • Listings name it many ways — DREC tax, municipality or housing tax, wasl tax, sub-leasing fee. “21%” is the 20% with its VAT.
    • Some parks charge their own fee to sub-let — Dubai Investments Park among them — at the rate the listing gives.
    • A listing marked tax-free, or “no DREC”, has no fee on top: only the 5% VAT.

    Source: DREC’s land

Your numbers

Work out your own first year

Set to the typical Dubai warehouse rent of AED 235,000 a year, on DREC land. Change the rent, the cheques, the deposit and the agency fee to your own terms, and switch off DREC’s fee for a tax-free unit.

The 10 checks before you sign

What it costs, payment by payment

The first payment at signing, what follows with Ejari, and each cheque after.

When the VAT on rent is paid

You pay AED 155,100 when you sign, AED 2,375 for Ejari and DEWA, then 3 cheques of AED 58,750 in months 4, 7 and 10.

Your first year, month by month · AED

PaidDeposits — you get these back

  1. At signingThe first payment

    AED 155,100

    Rent — cheque 1 of 4
    AED 58,750
    VAT on the year’s rent (5%)
    AED 11,750
    Security deposit (10%) · comes back
    AED 23,500
    Agency fee (5%)
    AED 11,750
    DREC sub-lease fee (20%)Paid in full before the sub-lease Ejari
    AED 47,000
    VAT on the DREC fee (5%)
    AED 2,350

    The later cheques are handed over now too, post-dated.

  2. Within daysEjari and DEWA

    AED 2,375

    Ejari registration
    AED 220
    DEWA deposit · comes backSet by DEWA from the power load
    AED 2,000
    DEWA connection
    AED 155

  3. Month 4Cheque 2 of 4

    AED 58,750

  4. Month 7Cheque 3 of 4

    AED 58,750

  5. Month 10Cheque 4 of 4

    AED 58,750

  6. First year, all in

    AED 333,725

    AED 25,500 of it comes back at the end of the lease — AED 308,225 is spent.

An estimate from the listing's terms and the usual charges. DEWA sets its deposit from the power load; DREC’s fee applies only on DREC land. Your broker confirms every figure in writing before you commit.

The deposit and agency fee start at the calculator’s own settings — change them to what you agree. DREC’s fee starts on, at 20% with its VAT; switch it off for a tax-free unit. The DEWA deposit is a placeholder: DEWA sets the real one for each premises.

By area

What warehouses let for, area by area

The typical rent and size of the warehouse leases registered in each area, to September 2026, and what that size rents for in a year with VAT.

Typical registered warehouse rents by area in Dubai
AreaTypical rentTypical sizeA year, with VATLeases
Dubai Investment ParkAED 584,540 sq ftAED 276,150268
Ras Al KhorAED 643,080 sq ftAED 206,850109
Al QuozAED 703,000 sq ftAED 220,50089
Al QusaisAED 623,750 sq ftAED 244,65058
Dubai Industrial CityAED 5010,330 sq ftAED 542,85047
Nad Al HamarAED 573,000 sq ftAED 179,55045
Jebel AliAED 503,060 sq ftAED 160,65038
Al TtayAED 311,130 sq ftAED 36,75036
Al WarsanAED 615,060 sq ftAED 324,45035
Al KhabaisiAED 515,370 sq ftAED 287,70028

Rent a sq ft a year. Source: Dubai Land Department’s registered leases, via Dubai Data · every area in the Rent Guide

Year two

When the lease comes up for renewal

What the rules say about a warehouse’s rent at renewal.

  • Changes need 90 days’ notice

    Either side that wants to change the terms at renewal — the rent included — must tell the other at least 90 days before the lease ends.

    Source: Dubai Law 33 of 2008

  • No rent index for warehouses yet

    Dubai’s rent-increase bands are applied through RERA’s rent index, and Dubai Land Department says the commercial and industrial indices are still under development. Until they are published, a warehouse’s renewal rent is agreed between the two sides.

    Source: DLD · Decree 43 of 2013

  • If you can’t agree

    The Rental Dispute Settlement Centre can set a fair rent when landlord and tenant do not agree on the renewal terms.

    Source: Dubai Law 33 of 2008

Questions

Warehouse costs, answered

The steps in order — Ejari, DEWA, the licence — are in renting a warehouse in 10 steps.

What is the 20% DREC tax on warehouse rent?

It is the sub-lease fee DREC — Dubai Real Estate Corporation — charges when a unit on land it leases out is sub-let: 20% of the contract’s value, paid in full before the Ejari is issued, with 5% VAT on it. Listings also call it the municipality, housing or wasl tax. It applies only on DREC land, and DREC waives it where the main leaseholder holds at least half of the tenant’s trade licence.

What does “tax-free” mean on a warehouse listing?

That there is no sub-lease fee on top of the rent — the unit is not on DREC land, or the fee does not apply to it. The 5% VAT on a commercial lease is still charged.

Can the DREC fee be paid in cheques?

No. DREC takes the sub-lease fee in full, by card or manager’s cheque, and issues the Ejari after it is paid — so it belongs in the first payment, not spread across the rent cheques.

Is VAT charged on warehouse rent in Dubai?

Yes. Leases of commercial property — warehouses, showrooms, offices — are taxed at 5%, and a VAT-registered landlord adds it to the rent and to any service charge; DREC’s sub-lease fee carries VAT too. Homes are generally exempt.

How much is Ejari for a warehouse?

The same as for any lease in Dubai: AED 220 at a trustee centre, or AED 177.75 online through Dubai REST or the DLD website.

How much is the DEWA deposit for a warehouse?

DEWA sets it for each non-residential premises from its consumption, so there is no fixed figure; it is refunded when the account is closed. The connection costs AED 125 for small meters or AED 300 for large ones, plus AED 30 in fees.

Is there a legal cap on the agency fee?

No. Dubai Land Department’s rule is that a broker’s commission is what the agreement says; only where nothing was agreed does the prevailing custom apply. Agree it in writing before the viewings.

Do I get the security deposit back?

Yes. Dubai’s tenancy law requires the landlord to return the deposit — or what remains of it after any damage — when the lease ends. The amount itself is whatever the contract says.

Can the landlord raise a warehouse’s rent at renewal?

Either side must give 90 days’ notice of any change. The official rent-increase bands work through RERA’s rent index, which does not yet cover commercial or industrial property, so the new rent is agreed — and the Rental Dispute Settlement Centre can set a fair rent if you can’t agree.

Talk to a broker

Tell us the budget. We’ll show you what it rents.

Size, area, power, height and the yearly budget with everything in — we shortlist units that fit and put the whole first year on one page before you sign.

WhatsApp a brokerCall 050 505 9097