To give investors a fast, data-driven starting point, we’ve created an interactive Commercial Property Value Estimator.
Investor Tools
Commercial Property Valuations
Valuation Tool
COMMERCIAL PROPERTY VALUE ESTIMATOR
Investor Tools
Commercial Property Value Estimator
Estimate the market value of a Dubai commercial asset from its income, using the RICS cap-rate method. Enter the rent, the leasable area and the building's service charge — we build the Net Operating Income and apply indicative cap rates for the area to return a value range.
Indicative market value
Enter the building’s service charge to calculate a value — we publish no rate.
RERA’s Mollak Service Charge Index publishes the approved rate per square foot for a named building — search it on Mollak, the DLD website or the Dubai REST app. With that rate and the leasable area we build the net operating income and apply the DIFC office cap-rate range (6.0%–7.5%) to return a value.
Net operating income—Enter the service charge above
Cap-rate range6.00% – 7.50%Measured
Value per sq ft—
Implied gross yield—Enter the service charge above
An indicative, income-based estimate only — not a RICS valuation. Cap rates shown are illustrative ranges for guidance and vary with lease term, tenant covenant, condition and market timing. A formal RICS-compliant valuation is required for financing, insurance or contract. See the guide How commercial property is valued in Dubai for the full method.
Email my results
We’ll send this summary — your figures and the results — to your inbox.
There is no valuation to email yet — the building’s service charge was not entered, and we publish no rate. RERA’s Mollak Service Charge Index publishes the approved rate per square foot for a named building — search it on Mollak, the DLD website or the Dubai REST app. Enter that rate and the estimate runs.
Cap rates by location
Every location this estimator carries for office, keenest cap rate first, with the indicative cap-rate band drawn on one axis; enter the service charge and leasable area above to see the value your own income would produce at each. Choose a row to value against it.
- Measured
- Broadly measured. Published research covers this zone directly.
- Tier-mapped
- Mapped to a sourced citywide anchor from this zone’s tier: prime, established, secondary or emerging. This zone is not measured on its own.
Cap-rate bands are indicative ranges compiled from published commercial research and kept under continuing review. They are not transaction evidence and not a valuation.
Next step
Get a RICS-grade valuation or comparable deals in this area
Send us this scenario and our commercial team will pressure-test the cap rate against live transactions and share what's trading at this level.
HOW COMMERCIAL PROPERTY IS VALUED IN DUBAI
Understanding how commercial property is valued is essential for any serious investor in Dubai’s dynamic real estate market. Unlike residential assets, which are typically valued based on comparable sales, commercial real estate is valued primarily using income-based approaches—most notably through capitalisation rates (cap rates) and net operating income (NOI).
On this page, we’ll break down how it works, what to watch out for, and how you can use our interactive valuation tool to get a quick market estimate for your commercial property.
What Is the Capitalisation Rate (Cap Rate)?
A capitalisation rate, or cap rate, is a key metric used to assess the market value of income-producing real estate. In simple terms, it tells you how much an investor is willing to pay for a property based on the annual income it generates.
Cap Rate Formula:
Cap Rate =Net Operating Income (NOI)Market Value
To estimate property value from the cap rate, the formula is inverted:
Market Value =Net Operating Income (NOI)Cap Rate
For example, if a property earns AED 800,000 annually and the market cap rate is 8%, its estimated market value would be AED 10,000,000.
What Is Net Operating Income (NOI)?
Net Operating Income (NOI) represents the annual income generated by a property after operating expenses, but before tax, debt service, or depreciation.
NOI formula:
NOI = Gross Rental Income − Operating Expenses
Typical operating expenses include service charges, property management fees, maintenance costs, and insurance—but exclude mortgage payments and taxes.
HOW CAP RATES ARE DETERMINED IN DUBAI
Cap rates vary across different districts, asset types, and property profiles. For example, high-footfall retail units in Dubai Marina or Downtown Dubai will have different cap rates than office units in emerging zones like Dubai South or DIP.
Cap rates are influenced by:
- Location (e.g. prime vs fringe)
- Lease terms and tenant quality
- Vacancy risk
- Market comparables
- Future development pipeline
- Supply-demand dynamics
In Dubai, professional valuers adhere to RICS (Royal Institution of Chartered Surveyors) standards, which form the benchmark for all bank-led and institutional property valuations.
CHALLENGES IN VALUING COMMERCIAL PROPERTY
Valuing commercial real estate in Dubai is not always straightforward. Here are some common pitfalls and limitations to be aware of:
Incomplete or inconsistent NOI data
Many landlords do not account for service charges or management fees when calculating net income, resulting in inflated valuations.
Misinterpreted cap rates
Cap rates can vary significantly between comparable properties depending on lease length, covenant strength, or physical condition.
Overlooked regulatory constraints
Zoning rules, licensing requirements, and permitted business uses can restrict rental potential.
Unaccounted vacancy periods
If a unit has been empty or on rent-free terms, the true income may differ from advertised rent.
Variable service charges
High service charges can drastically reduce NOI and skew yield expectations.
WHY WORK WITH MITCHELL’S?
At Mitchell’s, we offer more than data—we help investors make smarter commercial property decisions with clarity and confidence.
With over 25 years in international finance and nearly two decades in Dubai real estate, we provide:
- Access to high-yield office, retail, and mixed-use opportunities in Dubai’s most active zones
- Deep-dive analysis of cap rates, tenant covenants, lease terms, and ROI forecasts
- Winning negotiation and deal structuring tailored to your tax strategy and exit goals
- On-the-ground knowledge to help you avoid pitfalls and maximise outcomes
We’re not here to sell—we’re here to help you invest with precision - Let’s talk. No pressure—just strategic clarity.
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NEW! MITCHELL'S DUBAI COMMERCIAL REAL ESTATE INDEX
Common Questions
FREQUENTLY ASKED QUESTIONS (FAQS)
1. What is a good cap rate for commercial property in Dubai?
There is no single answer — the estimator above holds a different indicative range for every asset type and location, from around 6% at the prime end (DIFC and Downtown Dubai offices, prime retail) to a little over 10% in emerging and secondary zones. A lower cap rate is not a worse asset; it usually reflects stronger tenant covenants, longer leases and lower perceived risk, and produces a higher value for the same income.
2. Can I rely solely on the cap rate to determine property value?
No. Cap rates are a starting point, but actual value depends on net income accuracy, tenant risk, lease terms, and market demand.
3. What if my property has been vacant or recently renovated?
These factors can distort NOI and should be carefully adjusted for when estimating value. A professional valuation will consider these nuances.
4. Is this tool accurate for retail as well as office units?
Yes, where sufficient data is available. However, retail yields can vary widely based on footfall, visibility, and tenant type.
5. Do I need a formal valuation when buying or selling?
Yes. We strongly recommend a RICS-compliant valuation, especially for financing, insurance, or contractual purposes.
