Are you thinking of starting a car dealership in the UAE? The first and one of the biggest costs of starting a car showrooms in the UAE is rent. That brings us to the question, how much does it cost to rent a location for a car dealership in the UAE?
EasyCars has put together the complete guide that outlines the current average rental costs across the UAE for car dealerships and what you need to know prior to signing a lease.
Let's get into it!
Factors Affecting Car Dealership Rental Costs
Before we dive into the average cost of renting a car dealership space in the UAE it is important to know what affects rental costs. Understanding the factors that affect rental costs in the UAE will help you make the best decision when it comes time to look for a location to start a car dealership.
- Location
- The biggest factor that determines rental costs is the location of your dealership. Prime locations in main UAE cities like Dubai and Abu Dhabi will be much more expensive than starting a dealership in Sharjah or Ajman. The main reason for this is major cities like Dubai offer increased foot traffic and visibility.
- Size of the Space
- The second biggest factor that affects the cost of renting a car dealership space in the UAE is the size of your dealership. The bigger your dealership is, the more you will need to spend. This point is very important as dealers will need to be strategic with their choice of location size. Dealerships will need space to accommodate cars, customer waiting areas and office space.
- Type of Property
- Another important factor that impacts rental costs is the type of location. For example, will your car dealership be in a standalone property? Or will it be part of a larger commercial complex? Prices do vary greatly for either option.
- Lease Terms
- Lease agreements also play a huge part in the overall price of renting a space. Singing a long-term lease often comes with lower rental amounts as it reduces risk for the landlord.
- Free Zones vs Mainland
- The last factor that has a major impact on the price of renting a location is whether you choose to operate your dealership on the mainland or if you choose to operate in a free zone. Free zones to tend to offer lower rental rates but they do come with certain restrictions.
Rental Costs in Major UAE Cities
Now that we understand the factors that impact the price of renting a car dealership space in the UAE, it's time to dive into the average rental costs for car dealership spaces in some of the UAEs most popular regions.
- Dubai
- As the biggest city in the UAE and home to many car dealerships, Dubai is the most expensive city in the UAE to rent a car dealership space. Renting a location for a car dealership in areas like Sheikh Zayed Road, Al Quoz, or the Dubai Investment Park (DIP) prices range between AED 150,000 to AED 500,000 per year, depending on the size and location.
- If you're looking to start a car dealership in one of Dubai’s free zones like Jebel Ali Free Zone (JAFZA), rental costs are much more affordable. The average rental cost for a free zone in Dubai ranges from AED 80,000 to AED 300,000 annually.
- Abu Dhabi
- The capital city of the UAE, Abu Dhabi, offers much more affordable prices to rent a location to operate a car showroom. Rental costs for car showroom spaces in Abu Dhabi range between AED 120,000 to AED 400,000 annually.
- Sharjah
- An affordable city to rent a car showroom space in the UAE close to Dubai is Sharjah. The cost of renting a space for a car dealership in Sharjah ranges from AED 100,000 to AED 250,000 per year.
- Ajman and Ras Al Khaimah
- The cheapest city to rent a location for a car showroom in the UAE is Ajman and Ras Al Khaimah. In these cities annual rental costs for dealership spaces can range from AED 60,000 to AED 150,000. It is important to note that the foot traffic and visibility in areas like Ajman differ greatly to Ajman.
Final Thoughts,
The cost of renting a car dealership space in the UAE can vary greatly depending on location, size, and type of property. The prices presented in this piece are found to be the average cost of renting a car dealership space in the UAE as of 2024. It is important to note that prices are subject to change and do change.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to making any decision.
About EasyCars,
EasyCars by Jeal is a UAE Motor Industry Specific, Dealer Management Software that automates the daily tasks of running a motor dealership. Using the latest technologies, EasyCars removes frustrations experienced at the dealership - opening the doors to future growth.
EasyCars features include Simple Stock Management, Automated Advertising, Automatic VAT Calculations, Xero Accounting Integration, Facebook Automotive Inventory Ads, Dealer Websites and Business Reporting in the one central management software.
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