Des: Commercial real estate in Business Bay in Dubai and the UAE – prices are worth it. The commercial real estate market is on the rise. Commercial property for sale in Dubai.
Commercial real estate in Business Bay in Dubai and the UAE – prices are worth it
Dubai is the second largest emirate and the first most populated emirate of the UAE. Here the most liberal laws and commercial premises are in great demand by clients from all over the world. Off-plan in Business Bay is in especially great demand as this type of property allows the owner to cut on the expenses as well as purchase an asset at the very favorable price.
Commercial real estate is quite popular among foreign investors now as the prices and the conditions for the deals are really attractive. Let’s dive in and see what are the benefits of owning commercial real estate in Dubai and how you can buy it.
Laws are getting better
The laws of the emirate of Dubai differ in that here foreigners can buy commercial and retail real estate, while in some other Emirates real estate can only be rented.
Any foreign citizen who has bought commercial space in Dubai as a private property has the right to obtain a residence permit for 2 years with a further prolongation. Moreover, a residence permit is granted not only to himself, but also to family members. If spouses from your homeland do not have an officially registered marriage, then in order to obtain a residence permit, they both must be homeowners.
The economy is growing
The main sectors of the economy are trade, services, and tourism. A minimum of taxes is the main factor that attracts representatives of large entrepreneurs from different countries here. In addition, there are no trade quotas and barriers, currency control, logistics and all means of communication are well developed. The UAE has free economic zones (free zones) for the development of high technologies, outsourcing, and modern medical innovations.
The commercial real estate market is on the rise
Currently, the commercial real estate market in Dubai is very active. Prices are very favorable, although the total number of offers is reduced.
You can buy apartments, villas and an ordinary studio in a city apartment building or a luxurious country house. All residential complexes are equipped. Of course, the most sought after property is by the sea.
Prices, as elsewhere, depend on many factors – location, type and class of the property, the quality of building and finishing materials. Ordinary apartments in city houses with commercial space on the ground floors can be bought at a price of USD 150,000.
Currently, the construction of large luxury residential complexes on the coast is nearly finished. Here, the dream of millions of people is now clearly visible – to live on the shores of the warm sea, in a cozy beautiful bay, in which a huge number of elite yachts are moored, where an interesting comfortable life is seething on the embankment, and commercial facilities can be placed on the first floors of this building. In this area of Dubai, a certain “golden minimum” of requirements for real estate, both residential and business, has been tacitly established.
Commercial property for sale in Dubai
According to international experts, the sale and lease of commercial real estate in Dubai today is carried out on very favorable terms for foreign investors. Renting retail space in the city is one of the cheapest in the world. Here you can buy business premises much cheaper than in New York, Hong Kong, Sydney or London.
If you are interested in office real estate in the UAE and other commercial properties, then you should consider the following factors:
- The average annual ROI is 4-8%, but individual facilities (warehouses and work camps) may be more in demand, respectively, their figure is higher – 9-13%;
- Liquidity affects the level of ROI. In Dubai, some business properties with a high income asset may have low liquidity. It is difficult to find a buyer for such a real estate, low demand will simply negate the high rates of return on investment;
- Leasing a commercial facility implies long-term contracts of 5 years or more. Even with a low ROI, such a lease can protect assets from downtime and market downturns.
Renting premises in Dubai
To rent commercial premises in Dubai, you need also resort to the services of agents and intermediaries – this is a necessity in order to guarantee the reliability of transactions and find the best options.
- To avoid misunderstandings, experienced specialists recommend keeping in mind that a tenant should pay an intermediary only for the work that the intermediary has done. Thus, if he has found a suitable retail or business premises, then he is entitled to a commission for this. But if, after the expiration of the lease, the tenant himself agreed with the owner to extend the contract, then in this case the intermediary does not need to pay anything.
- When renting premises for business, the cost of agents’ services fluctuates significantly. It must be spelled out in the contract. If the agent requires too high a commission, then you can contact the real estate market regulation organization to resolve the dispute.
Real estate in Dubai
Emirates.Estate website brings to your attention an extensive database of high-quality properties of all types of real estate in Dubai: apartments, studios, townhouses, villas, offices, retail premises, as well as construction sites, and investment projects.