Dubai was among the first on the scene when the freehold property idea was launched within the United Arab Emirates property market. Unlike other traditional markets that were more established, the Dubai property market was yet to shake off its growing pains. There are slight differences in terms of operations, so people who want to buy Dubai commercial property need to keep this in mind when deciding among various investment opportunities.
Most Dubai real estate projects are residential (apartments, luxury villas, townhouses, new homes, etc.), but mixed-use structures and commercial buildings have also increased in number. For people who wish to buy Dubai commercial property, it is important to heed expert advice while searching for great finds. A reputable firm is staffed by professionals with access to plenty of available properties that can be had from the secondary market or directly from developers. These guys devote time to understanding your requirements so they can give you proper guidance throughout the property acquisition process.
Dubai Properties, Nakheel and Emaar are the three major Dubai developers. The government supports all of them. Land that the government granted these organizations is either sold off as plots to minor private development firms who build and sell all units, or they develop the area themselves.
More and more want to buy Dubai property, and developers are starting to take notice. Proof of this is the greater number of fresh off-plan projects crowding the market. Businesses see this as a way out of the steep rents being charged in certain Dubai areas. With the city expanding, business entities are likewise now forced to reexamine their current location.
Today, purchasing retail and office spaces are just as easy as renting them. Projects that have been completed have different delivery dates, which is a plus for most businesses since they usually have to contend with tenancy contracts that last longer than residential lease agreements.
While figures do not always reflect the rapid Dubai growth and expansion, it is happening and foreign companies know it. The additional population numbers mean more prime commercial space is needed. New reports point to a shortage in available office space for companies operating within Dubai, which is not likely to end soon. It’s therefore no surprise that investors see the financial potentials in the renting business.
Rental gains are pegged somewhere upwards of 18 percent. This number has investors wanting to hear more as residential properties only fetch around eight percent, with bank interest rates also being considerably lower. A quick glance at the supply-and-demand picture also reveals promising market growth.
To buy Dubai commercial property as a form of investment is different from putting in money for a residential property. Property fund managers all agree that between commercial and residential properties, the former represents a more stable investment. Tenants usually stay for a few years and sign leases lasting around five years. Depending on the type of lease agreement in place, the owner may have to retain the property, including the tenant, if the property is not sold. This is a primary concern among investors.
At present, completed commercial projects in Dubai aren’t that many, which makes buying properties and moving in right away tough to do. This is a sore spot for investors, especially those who want immediate returns on investments. With the current under-supply of finished Dubai properties and more businesses coming in, demand clearly outnumbers supply. This results in high rental yields that will stay that way until more opportunities become available for people to buy Dubai commercial property.
The properties market is still largely in its infancy. Its manner of operation is not the same as that of conventional markets that are more established. Making intelligent investment choices is hinged on potential investors’ understanding of this situation.
Obtaining financing to buy Dubai commercial property for sale is very doable. With the developed markets, the usual route is to enlist the help of a lawyer with purchases. This isn’t necessary with a property purchase in Dubai. Nevertheless, the best way to go about property acquisitions is still to review the guidelines specified by various firms providing property purchase assistance