How to Get a Mortgage on a Commercial Property in Dubai

Investing in commercial real estate in Dubai can be a lucrative venture, given the city's thriving business environment and strategic location. Whether you're looking to start a business or expand an existing one, obtaining a mortgage for a commercial property can be a smart financial move. This guide will walk you through the key steps involved in securing a mortgage for a commercial property in Dubai.Understanding the Dubai Real Estate Market:Before diving into the mortgage process, it's crucial to have a solid understanding of the Dubai real estate market. Dubai has a diverse commercial property landscape, including office spaces, retail outlets, warehouses and more. Research the specific market segment that aligns with your business goals and budget.Financing Options:In Dubai, various financial institutions, including local and international banks, offer commercial property mortgages. Research and compare the financing options available to find the one that suits your needs. Consider interest rates, loan terms and any additional fees associated with each option.Eligibility Criteria:To qualify for a commercial property mortgage in Dubai, you'll need to meet certain eligibility criteria. Typically, lenders will assess factors such as your business's financial stability, credit history and the type of commercial property you intend to purchase. Prepare financial documents, business plans and any other relevant information that lenders may require during the application process.Engage a Qualified Real Estate Agent:Navigating the Dubai real estate market can be complex and having a qualified real estate agent can be invaluable. An experienced brokerage such as CRC Property can help you identify suitable properties, negotiate terms and guide you through the legal and regulatory aspects of the transaction.Due Diligence:Before finalising your property selection, conduct thorough due diligence. Ensure that the commercial property complies with local zoning regulations, has clear ownership titles and is free from any legal encumbrances. This step is crucial in avoiding potential complications down the road.Legal Requirements:Dubai has specific legal requirements for property transactions. Engage the services of a qualified legal professional to ensure all contracts and agreements comply with local laws. The legal expert can also assist in obtaining the necessary approvals from relevant authorities.Loan Application Process:Once you've selected a property and completed your due diligence, it's time to initiate the loan application process. Prepare a comprehensive application package, including your business and financial documents and submit it to the chosen lender. Be prepared for a thorough assessment of your financial health and the viability of your business.Negotiate Terms:After the initial evaluation, engage in negotiations with the lender to secure favorable terms for your mortgage. Discuss interest rates, loan duration and any other relevant conditions. A skilled negotiator can help you achieve terms that align with your business strategy and financial capabilities.Conclusion:Securing a mortgage for a commercial property in Dubai requires careful planning, research and adherence to legal requirements. By understanding the local real estate market, exploring financing options and working with experienced professionals, you can navigate the process successfully. As Dubai continues to be a hub for business and investment, a well-executed commercial property investment can contribute significantly to the success of your enterprise.About CRC Property CRC (Commercial Real Estate Consultants) is a brokerage firm specialising in commercial properties and affiliated with Betterhomes. The company was founded by a group of creative and forward-thinking individuals in the real estate industry. CRC mainly focuses on serving local and international clients who want to sell, lease, or invest in commercial properties to achieve greater value. With a team of 50 property experts, we understand the business of commercial real estate. Our property consultants are handpicked and trained to the highest standards to professionally represent our brand and your interests. Leveraging best-in-class technology and support, our agents provide comprehensive options to strategic direction - now and long into the future. With proven track records and an ever-present eye on market trends, CRC makes it our business to develop an innate understanding of yours.

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Commercial Sales
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How to Get a Mortgage on a Commercial Property in Dubai

Dec 19, 2023

Unlocking Wealth: Navigating Sharjah's Commercial Opportunities in 2023

Sharjah is rapidly emerging as a dynamic hub for investors and entrepreneurs alike. Boasting a strategic location and a steadily growing economy, the new Sharjah area is unveiling a plethora of opportunities for those seeking to capitalise on its commercial market. In this article, we will delve into the key trends shaping Sharjah's business landscape and explore the enticing prospects that await both investors and entrepreneurs as highlighted by Amit Vora, Manager of CRC Property Sharjah.Opportunities for InvestorsEconomic Growth and Strategic Location: Sharjah's economic growth has been nothing short of impressive, fueled by diverse sectors such as manufacturing, logistics and tourism. Its strategic location as a gateway between the East and West positions it as an attractive investment destination. Investors can tap into this burgeoning economy to yield substantial returns.Investor-Friendly Policies: The Sharjah government has implemented a series of investor-friendly policies, creating an environment conducive to business growth. These initiatives aim to streamline processes, reduce bureaucracy and provide a supportive framework for businesses to thrive. This commitment to facilitating ease of doing business is a key driver for investors considering the region.Commercial Real Estate Initiatives: The commercial real estate sector in Sharjah is experiencing a renaissance, thanks to the government's strategic initiatives. With a focus on creating vibrant business districts, the government is actively attracting new businesses by offering competitive incentives. This includes tax breaks, reduced licensing fees and other perks designed to entice investors to set up shop in Sharjah.Launch of Mega Projects: The launch of ambitious projects like Aljada and Tilal City has injected a new wave of energy into Sharjah's commercial market. These mega developments not only enhance the city's infrastructure but also provide diverse investment opportunities. Investors can explore sectors ranging from hospitality and retail to residential real estate, contributing to the city's evolution into a modern business hub.Image: Tilal City - Sharjah Opportunities for EntrepreneursReserve Spaces for Innovative Ventures: Entrepreneurs and project owners are encouraged to reserve spaces within the new Sharjah area to bring their innovative ventures to life. Whether it's a tech startup, a boutique retail concept or a service-oriented business, the city welcomes diverse ideas that contribute to the region's development.Enhancing Quality of Life: The Sharjah government is actively seeking entrepreneurs who can contribute to enhancing the quality of life for residents. From innovative healthcare solutions to sustainable living initiatives, entrepreneurs have a unique opportunity to make a positive impact on the community while building a successful business.Government Initiatives for Startups: Recognising the importance of startups in driving economic growth, the Sharjah government has introduced various initiatives to support entrepreneurs. This includes funding programs, mentorship opportunities and access to shared workspaces, creating an ecosystem where new businesses can flourish.ConclusionIn conclusion, Sharjah's commercial market is on an upward trajectory, presenting a tapestry of opportunities for both investors and entrepreneurs. The confluence of a growing economy, investor-friendly policies and visionary projects make Sharjah a compelling destination for those looking to be part of a thriving business landscape. As the city continues to evolve, savvy investors and forward-thinking entrepreneurs stand to reap the rewards of being early contributors to Sharjah's economic success.

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Sharjah's Industrial Zones: Exploring the Industrial Landscape

Sharjah, a dynamic emirate in the United Arab Emirates, is not only known for its rich cultural heritage but also for its thriving industrial sector. The emirate has strategically developed several industrial areas that have become the backbone of its economic growth. In this article, we will delve into the key industrial areas of Sharjah, exploring the sectors they encompass, their infrastructure and the crucial role they play in driving the emirate's industrial development.Sharjah Industrial Areas Overview:Sharjah boasts several dedicated industrial zones that cater to a diverse range of industries. These industrial areas are meticulously planned and equipped with state-of-the-art infrastructure to support the manufacturing, logistics and trading activities that take place within their boundaries.1) Hamriyah Free Zone:One of the most prominent industrial zones in Sharjah is the Hamriyah Free Zone (HFZ). Designed to facilitate international trade and industrial activities, HFZ provides a business-friendly environment with tax exemptions and full ownership rights for investors. It is home to a myriad of industries, including petrochemicals, steel, construction materials and maritime industries.2) Sharjah Airport International Free Zone (SAIF Zone):Strategically located near Sharjah International Airport, SAIF Zone is a free trade zone that has become a hub for manufacturing, trading, and service enterprises. Its proximity to the airport facilitates efficient logistics and global connectivity. SAIF Zone caters to industries such as aviation, electronics, pharmaceuticals and logistics.3) Sharjah Industrial Area (SIA):The Sharjah Industrial Area is a comprehensive zone that accommodates a wide array of industries, from manufacturing and processing to assembly and packaging. Its central location in Sharjah makes it an attractive option for businesses seeking accessibility to key markets within the emirate and beyond.4) Al Sajaa Industrial Oasis:Al Sajaa Industrial Oasis is an emerging industrial area in Sharjah, offering a strategic location with easy access to major highways. This zone focuses on light and medium industries, including manufacturing and warehousing. The well-planned infrastructure and facilities make it an attractive choice for businesses looking to establish a presence in Sharjah.Industrial Investment Opportunities:Sharjah's industrial areas present lucrative investment opportunities for both local and international businesses. The government's commitment to creating a conducive business environment, coupled with incentives such as tax exemptions, has attracted a diverse range of industries. Investors can benefit from the well-developed infrastructure, streamlined administrative processes and a supportive regulatory framework.CRC SharjahIn the vibrant and economically dynamic emirate of Sharjah, seizing opportunities in the industrial sector requires a keen understanding of the market and a partner with the expertise to navigate its intricacies. CRC Property, the UAE's leading commercial real estate consultancy has a proven track record in guiding investors through the complexities of industrial investments. Contact us today to explore Sharjah's key industrial zones for you and your business. 

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Commercial Leasing
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Sharjah's Industrial Zones: Exploring the Industrial Landscape

Nov 22, 2023

Best Areas with High ROI Dubai Commercial Investment

Commercial property investment in Dubai is particularly attractive due to its dynamic economy and strategic location. In this article, we will explore some of the best areas in Dubai for investing in commercial property with a focus on high Return on Investment (ROI). The key areas we'll delve into are Business Bay, Jumeirah Lake Towers (JLT), Al Barsha and Jebel Ali which provide an average yield of 8-10%.# 1 Business BayBusiness Bay stands as one of Dubai's premier business districts, strategically located between old and new Dubai. It is a rapidly developing area, featuring an impressive skyline of modern office towers and commercial spaces. Here are some benefits of investing in commercial property in Business Bay:a. Strategic Location: Situated near Dubai's main business hub, Business Bay offers easy access to Sheikh Zayed Road and is in close proximity to Downtown Dubai.b. Infrastructure and Amenities: Business Bay boasts world-class infrastructure, including state-of-the-art office facilities, hotels, and retail spaces. The area is designed to provide a seamless blend of work and leisure.c. High Demand: With a growing demand for office spaces and commercial establishments, Business Bay presents a lucrative opportunity for investors seeking high returns.The mean cost per square foot for available office spaces in Business Bay stands at AED 961.60, with an average overall price of AED 1.28 million. #2 Jebel AliJebel Ali, located in the southwestern part of Dubai, is a key industrial and commercial hub. Known for its extensive port facilities and industrial zones, Jebel Ali offers unique advantages for commercial property investors:a. Strategic Industrial Zone: Jebel Ali is home to one of the largest industrial zones in the region, making it an ideal location for businesses involved in manufacturing, logistics and trade.b. Proximity to Port: The Jebel Ali Port is one of the busiest ports in the Middle East, providing businesses with unparalleled access to international trade routes.c. Logistical Advantage: Investors looking for commercial properties with a focus on logistics and industrial activities will find Jebel Ali to be a strategic choice, given its logistical advantages and connectivity.The cost per square foot for warehouses available for sale in Jebel Ali is AED 177.71, with an average total price amounting to AED 10 million.#3 JLTJLT is a popular waterfront community known for its impressive cluster of high-rise towers and man-made lakes. This area has gained prominence as a hub for commercial and residential developments. Here's why investing in commercial property in JLT is a smart move:a. Free Zone Benefits: JLT is a free zone, offering businesses tax exemptions, 100% foreign ownership, and hassle-free company setup procedures, making it an attractive destination for international companies.b. Scenic Environment: The picturesque lakes and landscaped surroundings make JLT an appealing location for businesses, creating a positive work environment that can attract tenants and clients.c. Proximity to Key Areas: JLT is well-connected to major business and leisure hubs in Dubai, enhancing its appeal for businesses and ensuring a steady stream of potential clients.The cost per square foot for offices available for sale in Jumeirah Lake Towers is AED 802.30, with an average sales price of AED 1 million for these properties.#4 Al BarshaAl Barsha is a well-established residential and commercial community known for its diverse offerings and central location. Here are some reasons why Al Barsha is an attractive investment destination for commercial property:a. Mixed-Use Development: Al Barsha features a mix of commercial and residential developments, providing a vibrant and dynamic atmosphere that attracts businesses and residents alike.b. Connectivity: With easy access to Sheikh Zayed Road and the Dubai Metro, Al Barsha ensures excellent connectivity, making it convenient for businesses to operate and for employees to commute.c. Retail and Entertainment: The presence of popular shopping malls and entertainment options in Al Barsha contributes to a thriving commercial environment, attracting a steady flow of foot traffic.

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Investment
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Best Areas with High ROI Dubai Commercial Investment

Nov 13, 2023

Exploring Investment Opportunities in Sharjah's Thriving Commercial Market

As one of the seven emirates that make up the United Arab Emirates (UAE), Sharjah has emerged as a dynamic hub for business and investment. While neighboring Dubai often takes the spotlight, savvy investors are increasingly turning their attention to Sharjah's flourishing commercial market.Strategic LocationSharjah's strategic location between Dubai and the northern emirates places it at the crossroads of trade and commerce. Its proximity to major international airports and seaports enhances accessibility for businesses looking to expand into the Gulf region and beyond. This geographic advantage makes Sharjah a preferred choice for logistics, shipping and trade-related businesses.Investor-Friendly PoliciesSharjah offers a business-friendly environment with an array of incentives and initiatives to attract investors. The Sharjah Economic Development Department (SEDD) and the Sharjah Investment and Development Authority (Shurooq) play key roles in facilitating investments. They provide support in the form of grants, subsidies and simplified procedures for business setup.Diversified EconomyWhile Sharjah's economy has traditionally been rooted in manufacturing, it has steadily diversified over the years. The emirate now boasts a thriving tourism sector, cultural attractions and a growing technology and innovation ecosystem. Investors can tap into various industries, including real estate, tourism, healthcare and education, among others.Free Zones and Industrial ZonesSharjah hosts several free zones and industrial zones, each catering to specific industries. These zones offer 100% foreign ownership, tax exemptions and duty-free imports and exports. Examples include Sharjah Airport International Free Zone (SAIF Zone) and Hamriyah Free Zone Authority (HFZA), which have attracted a diverse range of businesses.Takeaways Sharjah's commercial market is thriving, with ample opportunities for investors looking to establish or expand their business operations in the UAE. Its strategic location, investor-friendly policies, economic diversification, and commitment to infrastructure development make it a compelling choice for entrepreneurs and investors. 

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Valuations Explained: Unveiling 3 Approaches and 5 Methods for Informed Decision-Making

Have you ever wondered how experts determine the value of a company, property, or investment? Valuation might seem like a complex puzzle, but fear not! In this article, we'll break down the three main valuation approaches and delve into five valuation methods, all explained in simple terms.Valuation Approaches: The Big PictureValuation is essentially estimating the basis of value of something. Bases of value include market value, fair value & worth. To make this process more structured and accurate, professionals use three main approaches:1. Income Approach: Imagine you're buying an apartment to rent out. The income approach considers how much income the property can generate relative to its costs. If the potential rental income is high, the property's value goes up. This approach is like looking into the future and figuring out how much money an investment will make.2. Market Approach: Have you ever looked at similar homes for sale when determining the value of your own? That's the market approach! It involves comparing the subject property or company to similar ones that were recently sold or valued. This method relies on the idea that similar properties should have similar values with adjustments made for differing characteristics. Property characteristics include, location, condition, number of bedrooms and view etc.3. Cost Approach: Think of this as starting from scratch. The cost approach calculates the value by adding up the cost to build or replace a property, subtracting any depreciation (wear and tear), and arriving at the final estimated value / cost.Valuation Methods: Cracking the CodeNow that we understand the three approaches, let's dive into the five most common valuation methods, each falling under one of these approaches:Income Approach:Investment Method: This method is all about analysing current income and forecasting the future income an investment will generate. If an investment is expected to produce high returns, relative to its costs, its value will be higher. The investment method can be broken down into two techniques which include the traditional investment method and the Discounted Cashflow (DCF) method.Profits Method: Professionals often use this method and is typically used for properties with trading potential. It looks at historical and projected profits to determine a company's or property’s value relative to its target rate of return.Residual Method: This method focuses on the residual value of a plot of land or under-construction property or project. This method uses a top down approach with the value derived by substituting associated development costs from the property’s overall Gross Development Value (GDV), resulting in a residual land valuation. This method can be considered as combination of all three valuation approaches. A DCF technique is often used for this method and is typically adopted more than the basic residual method. It is worth noting that the residual method of valuation is very sensitive to assumptions and inputs.Market Approach:Comparable Method: This method looks for and analyses similar properties or companies that were recently sold or valued. By comparing prices whilst making adjustments for differing characteristics, you estimate the value of the subject property or company. This method of valuation can be considered as the most accurate method of valuation for certain property types, particularly residential apartments and villas.Cost Approach:Depreciated Replacement Cost Method: This method factors in the cost of replacing the asset minus the depreciation it has endured over time. The value of a property based on the cost approach is estimated by considering the cost of rebuilding it while accounting for its wear and tear / depreciation. This method of valuation is typically considered as the method of last resort and is typically used for valuing real estate assets that do not transact in the open market. Examples could include mosques, oil refineries & lighthouses. This method is like calculating the cost of building a new asset identical to the one you're valuing.Final ThoughtsValuation might seem like a maze, but armed with the knowledge of these three approaches and five methods, you're better equipped to navigate through it. Whether you're buying a house, investing in a company, or estimating the value of a vintage collectible, these valuation approaches and methods provide you with the tools to make informed decisions.Work with us to experience the expertise of our RICS qualified professionals to accurately determine the value of your most prized assets.

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6 ways to maximize your ROI on commercial properties in Abu Dhabi

Abu Dhabi provides an excellent opportunity for individuals seeking to maximize their return on investment (ROI). Abu Dhabi has different commercial properties, each with advantages and disadvantages. The office building is a type of commercial property in Abu Dhabi. Other commercial property types in Abu Dhabi include retail stores, warehouses, industrial buildings, and mixed-use structures. Each type of commercial property must comply with specific zoning restrictions.Certain risks and concerns must be considered, like with any investment. In this blog, we will discuss six critical strategies for maximizing your return on investment when purchasing commercial property in Abu Dhabi.1.     Research The Current Market Situation for Commercial Properties in Abu DhabiAs the market for commercial properties in Abu Dhabi continues to expand, investors must conduct market research before making judgments. It is essential to explore a number of information sources. Reports on the industry can provide an overview of its current position and help identify trends. Demographic data can assist in identifying potential tenants for a property. Understanding the legal and regulatory context is also essential, as there may be limitations on the types of properties that can be constructed or their uses. Insights from other investors with experience with Abu Dhabi commercial properties can provide valuable perspectives.Utilizing web resources to investigate the current market position is another effective strategy. Various websites give comprehensive information about commercial properties in Abu Dhabi, including lists of currently available properties and prices. This might be an excellent technique for understanding the market’s offerings and current prices.2.     Understand What You’re BuyingWhen investing in commercial real estate in Abu Dhabi, knowing exactly what you buy is crucial. It is essential to consult a professional to obtain an accurate property assessment. This will help you understand the risks and potential returns involved with the investment. It is also essential to consider the property’s zoning constraints and conditions.3.     Research The LocationWhen researching a location for commercial property in Abu Dhabi, it is important to consider some factors. Look at demographic data to understand the population using the property. This includes things like age, income, gender, and family size. It is also important to understand the local market conditions and the type of businesses in the area.Another important factor to consider when choosing a location is zoning regulations. These regulations will dictate what type of development can occur on the property. Before making an offer, ensuring that the property you are considering is zoned for commercial development is important.It is also important to consider environmental hazards when choosing a location for a commercial property. Flooding, earthquakes, and hurricanes can all impact a property’s value and potential return on investment. It is important to research these hazards to make an informed decision about whether or not to invest in a particular location.Traffic patterns should also be considered, including vehicular and pedestrian traffic. Understanding how people move around the area can help you determine the best entrance/exit points for your development and where people are most likely to park their cars.4.     Consider The RisksWhen investing in commercial property in Abu Dhabi, it is important to consider the risks involved.The potential for loss of capital: It is a risk that needs to be considered when investing in any type of property, but it is especially important to consider when investing in commercial property. This is because commercial properties tend to be more expensive than residential properties, so there is a greater potential for loss if the investment does not go as planned.Currency risk: The value of the UAE Dirham can fluctuate against other currencies, which can impact the profitability of a commercial property investment.Political risk: The political stability of a country can impact the business environment and, as a result, the profitability of commercial properties.Legal risk: Similar laws and regulations apply to commercial properties compared to residential properties. Before investing, you must be familiar with these laws and regulations.5.     Have A Solid PlanA solid plan is essential when investing in commercial property in Abu Dhabi. There are several risks involved in this type of investment, so it is important to consider all potential risks and contingencies before making an investment decision. A clear understanding of your goals and objectives is also crucial for investment. Try to develop a flexible and achievable plan. A clear exit strategy is also essential to know how and when you will sell the property.6.     Work with A Reputable Real Estate Agent or CompanyIf you are considering investing in commercial property in Abu Dhabi, working with a reputable real estate agent or company can help you make a well-informed decision. They will be able to provide you with a list of potential properties that meet your investment criteria and give you an honest assessment of each one. They should also be able to provide you with information about the property’s location, including demographics, traffic patterns, and any other relevant data. This will allow you to decide which property is right for you and help you maximize your ROI.ConclusionIt’s important to have a clear plan for maximizing ROI on commercial properties in Abu Dhabi. You must work with a reputable real estate agent or company who knows the market well and consider all the risks involved in the purchase. A solid understanding of what you are buying and researching the market situation for commercial properties in Abu Dhabi are critical to making a successful investment. Remember that the market might alter at any time. After buying or leasing, keeping an eye on the market is crucial. This will help you receive the best property value.   

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What are the risks and rewards of investing in commercial properties in Dubai?

There has been a growing interest in investing in commercial properties in Dubai in recent years. Dubai is a global business hub with a growing economy and population. Due to these factors, there is a strong demand for commercial properties in Dubai.However, several risks are also associated with investing in commercial properties in Dubai. These include the political and economic instability of the region, the possibility of losing your investment, and the high cost of properties.On the risks side, investors should be aware of the potential for market volatility and the possibility of negative rental yields. In addition, there is always the potential for legal and regulatory changes that could impact the value of commercial properties in Dubai.On the rewards side, investors in commercial properties in Dubai can enjoy high rental yields and the potential for capital appreciation. In addition, Dubai is a tax-free city, meaning investors can keep more of their profits.In this blog, we will explore the risks and rewards of investing in commercial properties in Dubai.The risks of investing in commercial properties in DubaiThere are several risks associated with investing in commercial properties in Dubai. These include:The property market in Dubai is highly volatile and subject to sudden changes. This means there is a risk that the value of your investment could decrease suddenly.There is also a risk that the property you invest in may not be completed on time or to the required standard. This could lead to delays in getting your money back or even losses.There is also a risk that the rental income from your investment may not be as high as expected or may not be enough to cover your costs.You may also be unable to sell your investment when you want to or may have to sell at a loss.There is also a political risk associated with investing in commercial properties in Dubai. This is because the Emirate is part of the United Arab Emirates, which is politically unstable. This could lead to problems with your investment, such as delays or even confiscation of your property by the government.The rewards of investing in commercial properties in DubaiInvesting in commercial properties in Dubai can be a great way to earn a return on your investment. Many factors make Dubai an attractive investment destination, including:Growing economy – Dubai’s economy has been growing rapidly in recent years. This is due to several factors, including the city’s strategic location, tax-friendly environment, and pro-business policies. As the economy continues to grow, the demand for commercial properties is expected to increase.Population growth – Dubai’s population has been growing rapidly in recent years. This is due to both natural population growth and immigration. As the population grows, the demand for commercial properties is expected to increase.Tourism – Dubai is one of the world’s most popular tourist destinations. The city attracts tourists worldwide due to its many attractions, including its beaches, luxury hotels, and shopping malls. As tourism grows, the demand for commercial properties is expected to increase.Government support – The government of Dubai has been supportive of the city’s real estate sector. It has introduced several initiatives to promote investment in the sector. These initiatives have made it easier for investors to purchase and develop commercial properties in Dubai.ROI potential – Dubai Commercial properties offer high returns on investment. This is due to the strong demand for such properties and the limited supply of available space. Investors who purchase commercial properties in Dubai can expect to see healthy returns on their investment over time.Why should Investors consider commercial properties in Dubai?The government has also been supportive of the real estate sector. Commercial properties in Dubai offer the potential for high returns on investment due to the strong demand and limited supply.Investors should consider commercial properties in Dubai because of the city’s many advantages. These include its strategic location, growing economy, supportive government policies, and strong demand for retail space.What are the taxation laws in Dubai?The taxation laws in Dubai are complex and ever-changing, so investors need to seek professional advice before investing in commercial properties in the Emirate.Two types of taxes apply to real estate in Dubai: stamp duty and registration fees. Stamp duty is payable on purchasing all properties in Dubai, while registration fees are payable on the sale or transfer of ownership of properties.The stamp duty payable depends on the value of the purchased property. For properties valued at up to AED 1 million, the stamp duty rate is 4%. For properties valued between AED 1 million and AED 5 million, the stamp duty rate is 5%. And for properties valued at over AED 5 million, the stamp duty rate is 6%.The registration fee also depends on the value of the transferred property. For properties valued at up to AED 500,000, the registration fee is 2%. For properties valued between AED 500,000 and AED 1 million, the registration fee is 4%. And for properties valued at over AED 1 million, the registration fee is 6%.In addition to stamp duty and registration fees, investors should also be aware of other costs associated with purchasing property in Dubai, such as agent’s commission (usually 2-5% of the property value), legal fees (1-2% of the property value), and property valuation fees (0.5-1% of the property value).ConclusionIn conclusion, investing in commercial properties in Dubai has both risks and rewards. On the one hand, there is the potential for high returns if the economy grows and property values increase. However, there is also the risk of losses if the economy falters or property values decrease. So, carefully weighing the risks and rewards before making investment decisions is important. If you do your due diligence and research the market carefully, you can minimize the risks and maximize the rewards. With some planning and knowledge, you can make a wise investment that will pay off in the long run.  

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Reasons to hire commercial property agents in Dubai

The commercial market in Dubai is one of the most lucrative and profitable in the world. But it is also one of the most complex, with a number of different factors to consider when making a purchase or sale. If you are considering setting up a business in Dubai, one of the first things you will need to do is find a commercial property. Many different types of commercial properties are available in Dubai, from office space to retail space.The process of finding a commercial property can be daunting, especially if you are new to the city. It is where commercial property agents come in, and you should definitely consider hiring one of these experts.Commercial property agents are professionals who specialize in the buying and selling of commercial properties. These professionals are also experts in finding and negotiating leases for commercial properties. They have extensive experience and knowledge in the Dubai property market and can help you find the perfect commercial property for your needs.In this blog, we will look at a few reasons why you should hire commercial property agents in Dubai.The reasons for hiring commercial property agents in DubaiThere are numerous reasons to work with commercial property agents in Dubai. They will be able to save you time and money, and they will also help you avoid any pitfalls that could otherwise jeopardize your investment. In addition, they will be able to provide you with a wealth of knowledge and insight that you would not be able to access on your own.For companies looking to invest in commercial property in Dubai, working with experienced and reputable agents is essential. Not only will they help you find the right property for your needs, but they will also be able to provide invaluable guidance and advice throughout the process.Additionally, commercial property agents in Dubai have access to a wide range of properties. They can show you properties that you may not have otherwise had access to. And, if you’re looking for a particular type of property, they can help you find it.Finally, commercial property leasing agents in Dubai can offer you expert advice on the best way to buy or lease property in Dubai. They can help you negotiate your property’s best price and terms. If you’re not sure about something, they can answer your questions and give you the information you need to make the best choice possible.The expertise and local knowledge of commercial property agents in DubaiThere are many factors to consider when choosing a commercial property agent in Dubai. One of the most important is the agent’s expertise and local knowledge. With so many agents to choose from, it can be difficult to know who to trust. Not all of them have the expertise and local knowledge to help you find the right property for your business. But if you take the time to find an agent who really knows the Dubai market, you’ll be in good hands.A good commercial property agent will deeply understand the Dubai property market and can offer insights and advice on the best areas to look for commercial properties. They will also be familiar with the different types of properties available and can help you find one that meets your specific needs.An experienced agent will be able to help you navigate the Dubai market so that you can make the right decision. They’ll also be able to offer advice on the best way to negotiate and close a deal. And If you’re looking for a commercial property in Dubai, be sure to work with an experienced and knowledgeable agent who can help you find the perfect property for your business.The cost-effectiveness of hiring commercial property agents in DubaiThere’s no denying that hiring a commercial property agent in Dubai can be a bit of an expensive undertaking. But is it worth it? Are commercial property agents in Dubai really worth the cost?The truth is, it depends. If you’re looking for someone to handle the paperwork and deal with the biggest headache of finding a commercial property in Dubai, hiring an agent might not be worth hiring. However, if you’re looking for someone who can help you find the perfect property within your budget and negotiate on your behalf, then hiring an agent may be your best decision.Moreover, commercial property agents in Dubai can save you a lot of time and hassle. They have the experience and expertise to find the right property for your needs and can negotiate on your behalf to get the best possible price. Ultimately, their understanding of the market and ability to find the right property could save you thousands of dirhams, making their hiring worth your money and time.But at the end of the day, it’s up to you to decide whether or not the cost-effectiveness of hiring a commercial property agent in Dubai is worth it for your specific needs.They have industry connectionsIn Dubai, commercial property agents play a major role in the real estate industry. With their deep understanding of the market and their vast network of contacts, they can connect buyers and sellers in a way that benefits both parties.Of course, not all commercial property agents are created equal. Some are more experienced and connected than others. But if you’re looking for the best of the best, you’ll want to seek out an agent with industry connections. These agents will be able to give you the inside scoop on the Dubai real estate market and help you find the perfect property for your needs.From construction companies to government officials, your agent will have the right contacts to get things done. They’ll also be up-to-date on all the latest regulations and requirements, so you can be confident that your commercial property transaction will go smoothly.You can save time and moneyIf you’re looking for commercial property in Dubai, you might be tempted to go alone. After all, with so much online information available, it seems like it should be easy to find the perfect property without any help. But the truth is, if you take the time to find the right agent, they can save you a lot of time and money in the long run. Plus, they can advise you on the other costs associated with buying commercial property, such as stamp duty and legal fees.So if you’re serious about finding the right commercial property for your business, hiring an experienced agent is worth it.Wrapping upThere are many good reasons to use a commercial property agent when buying or selling property in Dubai. They have a wealth of experience and knowledge about the Dubai property market and can provide invaluable assistance in negotiation and paperwork. They can also save you a lot of time and hassle. Commercial property agents can also provide valuable advice on Dubai’s visa and residency requirements.So if you’re looking for a commercial property agent in Dubai, keep these things in mind. Their experience and knowledge can help you find the perfect property for your business and save you a lot of time and hassle.  

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Investment
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Reasons to hire commercial property agents in Dubai

Mar 10, 2023

Why commercial property in Dubai is a wise investment?

The United Arab Emirates has long been a popular destination for both tourists and expatriates. In recent years, Dubai has become increasingly popular as a destination for investment. Many see the commercial property in Dubai as a wise investment because of the city’s strong economy and stable political situation.There are many reasons why commercial property in Dubai is a good investment. The city is home to a growing number of businesses, and there is a high demand for office space. Dubai is also a major tourist destination, which means there is a good potential for rental income. Furthermore, the city’s tax laws are very favourable to investors.If you are considering investing in Dubai commercial property, this article is for you. We will explain why commercial property in Dubai is a wise investment and also give you some tips on finding the right property.Economic factorsThere are many reasons why commercial property in Dubai is seen as a wise investment. One of the key reasons is the city’s strong economy.The UAE has the seventh-largest economy in the world and is forecast to be the fifth-largest by 2030. Dubai’s economy is particularly strong and diversified, focusing on tourism, trade, and finance. The city is home to some of the world’s tallest buildings and largest shopping malls and is a major hub for international business.Dubai’s stable political situation also makes it an attractive destination for investment. The UAE is a federation of seven emirates, each with its own ruler. Sheikh Mohammed bin Rashid Al Maktoum, who has been in power since 2006, rules the emirate of Dubai. The Sheikh has implemented various reforms to make Dubai more business-friendly, including reducing red tape and streamlining the business setup process.The UAE’s strategic location also makes it an ideal base for businesses operating in the Middle East and Africa. Dubai is home to the region’s busiest airport, and its seaports handle a large percentage of the world’s maritime trade.These factors make Dubai a good investment destination for those looking to invest in commercial property.Tax benefitsWhen it comes to making a wise investment, commercial property in Dubai is hard to beat. One of the main reasons for this is the city’s tax regime, which is favourable to investors.Dubai has no capital gains taxes, so any profits you make on selling your property are yours to keep. This is a significant advantage over many other countries, where capital gains taxes can eat into your profits.In addition, there is no VAT (value-added tax) in Dubai. This means that the price you pay for your property is the final price – there are no hidden costs or taxes to worry about.Another major benefit of investing in commercial property in Dubai is that there are no restrictions on foreign ownership. So that you can easily buy and sell the property without having to worry about complex ownership rules and regulations.So if you’re looking for a wise investment that offers great potential returns, commercial property in Dubai should definitely be on your radar.Rental YieldsRental yields are an important consideration for any investor, especially for those considering commercial property in Dubai. After all, the whole point of investing is to make money, and rental income is one of the key ways in which you can do that.So what are rental yields? Put simply, it’s the income you make from renting out your property, expressed as a percentage of the property’s value. For example, if you own a commercial property worth AED 1 million and make AED 100,000 in rent from it over a year, your rental yield would be 10%.Generally speaking, the higher the rental yield, the better. That’s because it means you’re making more money in relation to the amount you paid for the property. And regarding commercial property in Dubai, some very attractive rental yields are on offer.For example, according to JLL’s 2019 City Momentum Index report, office properties in Dubai had an average rental yield of 7.4% in 2018. This was significantly higher than the global average of 5%. And it’s not just office properties that offer good rental yields in Dubai. The city also performed well in terms of retail and industrial rents, with both sectors seeing healthy growth in recent years.So if you’re looking for an investment that will generate a healthy return in the form of rental income, commercial property in Dubai is definitely worth considering.Capital AppreciationThe main reason why commercial property in Dubai is seen as a wise investment is due to the city’s strong economy and stable political situation. These two factors provide the perfect environment for businesses to thrive, which in turn drives up demand for commercial office space. This increased demand results in higher rental prices and capital appreciation for investors.Dubai’s economy has been growing steadily for the past few years, with GDP growth averaging 4.7% between 2014 and 2018. The city’s strong economic performance is driven by its diversified economy based on trade, tourism, financial services, and real estate. Dubai’s strategic location at the crossroads of East and West also makes it an ideal hub for businesses looking to tap into new markets.The stability of Dubai’s political situation is another key factor that makes it an attractive destination for investment. The city is part of the United Arab Emirates, a federation of seven emirates that the same royal family has governed since its formation in 1971. The UAE has a stable government and a strong track record of political stability. This provides a level of certainty for businesses operating in Dubai, which helps to attract foreign investment.So if you’re looking for an investment that offers great potential returns, commercial property in Dubai should definitely be on your radar.ConclusionIn conclusion, many see commercial property in Dubai as a wise investment because of the city’s strong economy and stable political situation. These two factors provide the perfect environment for businesses to thrive, which in turn drives up demand for commercial office space. This increased demand results in higher rental prices and capital appreciation for investors. The future of commercial real estate in Dubai looks very bright, making it a wise investment for those looking to generate healthy returns.  

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Investment
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Why commercial property in Dubai is a wise investment?

Feb 24, 2023

Reasons why buying a commercial villa in Dubai is the best investment?

IntroductionLooking for a safe and profitable investment? Consider commercial villas in Dubai. In this blog post, we’ll explore why commercial villas in Dubai make such a great investment and is a wise decision. The city is constantly evolving, making it an ideal property investment place. Commercial villas in Dubai are also a great investment because they offer several benefits that other property types do not.Some of the main reasons why investing in a commercial villa in Dubai is a good idea include the following:LocationDubai is one of the most popular tourist destinations in the world, which means that there is always a high demand for accommodation. Commercial villas in Dubai are located in some of the city’s most desirable areas, making them an excellent investment.Rental IncomeCommercial villas in Dubai can be rented out to generate a healthy return on investment. The city is home to a large number of businesses, and there is always a high demand for a quality place.Capital GrowthThe property value in Dubai has been steadily increasing over the past few years, making it a great place to invest for capital growth. Commercial villas have outperformed other types of property in Dubai, making them a wise choice for investors looking to make money from their investment.FlexibilityCommercial villas offer more flexibility than other types of property when it comes to use and occupancy. It makes them an ideal investment for those who want to rent their property or use it for business purposes.Tax BenefitsInvesting in a commercial villa in Dubai offers several tax benefits, including exemption from income tax and capital gains tax. It makes them an attractive investment for both local and foreign investors alike.What makes commercial villas in Dubai a good investment?There are many reasons why buying a commercial villa in Dubai is a good investment. Here are some of the key factors that make commercial villas in Dubai such an attractive investment:Dubai’s economy is boomingThe UAE’s economy has been growing rapidly in recent years, and Dubai is one of the key drivers of this growth. The Emirate’s gross domestic product (GDP) grew by 4.6% in 2018 and is expected to continue growing at a similar rate in the coming years. This economic growth is creating new business opportunities and driving up demand for commercial space.Commercial villas offer a great return on investmentInvestors in commercial villas can expect to see a healthy return on their investment. Rental yields on commercial properties in Dubai average around 7-8%, which is significantly higher than the returns from other investments such as bonds or stocks. And with prices for commercial villas still relatively low compared to other markets such as London or New York, there is also potential for healthy capital gains.Commercial villas are easy to rent outCommercial villas are very popular with businesses looking to rent an office or retail space. This is because they offer a number of advantages over other types of commercial property, such as being located in prime locations with good access to transport links and amenities. And with more businesses looking to set up operations in Dubai, there is high demand for quality commercial space, making it easier to find tenants for your property.The benefits of owning a commercial villa in DubaiThere are plenty of benefits that come along with owning a commercial villa in Dubai. One of the main advantages is the rental income potential. Commercial villas are usually located in high-demand areas, which means they can be rented out at a higher price than regular residential properties. This results in a higher return on investment for the villa owner.Another benefit of owning a commercial villa is the possibility of capital growth. As Dubai’s economy continues to grow, property value in the Emirate is also expected to increase. This means that investors who own commercial villas in Dubai could see their assets appreciate over time, providing them with a nice nest egg for the future.Lastly, commercial villas offer more flexibility than other types of investment property. They can be used for various purposes, such as office space, retail outlets, or even as serviced apartments. This makes them a very attractive option for investors who want multiple income streams from their property portfolio.Why now is the best time to invest in a commercial villa in DubaiThere are many reasons to invest in a commercial villa in Dubai now.The Emirate’s economy is strong and growing, creating new business opportunities. Commercial villas offer a great return on investment, with healthy rental yields and potential for capital growth. They are also easy to rent out, as they are located in prime locations with good access to transport and amenities.Now is a particularly good time to invest in a commercial villa in Dubai, as there is an increasing demand for high-quality rental properties. With the Emirate’s population expected to grow significantly in the next few years, investing in a commercial villa now could result in significant returns in the future.If you’re considering investing in property in Dubai, a commercial villa is a great option. With so many benefits, it’s no wonder they are becoming increasingly popular with investors.How to find the best commercial villa in Dubai for you?When looking for the best commercial villa in Dubai for your investment, you should consider a few factors. The villa’s location is key, as it will determine who your potential tenants are and how easily they can access your property. Look for a villa that is well-connected to public transport and close to amenities like schools, shopping centers, and parks. The size and layout of the villa are also important, as you will need to ensure there is enough space for businesses to operate comfortably. Finally, check that the villa has the necessary permits in place for commercial use. With these factors in mind, you can find a commercial villa in Dubai that meets your needs and provides a great return on investment.ConclusionThere are many reasons to invest in a commercial villa in Dubai. The Emirate’s economy is strong and growing, creating new business opportunities. Commercial villas offer a great return on investment, with healthy rental yields and potential for capital growth. They are also easy to rent out, as they are located in prime locations with good access to transport and amenities. Commercial villas in Dubai are an excellent option for investors looking for a safe and profitable investment. With strong returns and easy rental potential, commercial villas offer a great way to make money in the booming Dubai real estate market.  

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Guide to searching your first office for rent in Dubai

The UAE is a thriving economy, and all the world’s greatest and biggest business ventures are keen on setting up their businesses in the UAE. Specifically, when we talk about UAE, the first name that comes to mind is – Dubai. Dubai is one of the world’s most economically and technologically advanced cities today. Many eminent celebrities and politicians have invested in Dubai by buying properties and starting their businesses.Why Dubai?With the rise in the number of business ventures in Dubai, the renting and leasing spaces in Dubai have also increased. Dubai is also witnessing a huge rise in coworking spaces, where several freelancers and entrepreneurs have started working together for mutual benefit and better networking.For this reason, investing in purchasing commercial properties in Dubai can be intelligent. Through this investment, you can earn a fortune considering the rise in the number of business ventures in Dubai. Many people provide office for rent in Dubai. However, it depends on the nature of the business and the country’s laws. But investing in any Dubai commercial property can never be in vain.There are many office for sale in Dubai, so in this article, we will learn what you need to know before you lease your first office in Dubai.The DOs and DON’Ts of renting a space in DubaiConsidering the basic human factors, the first thing you need to see while getting any office for rent in Dubai is the ventilation and the spaciousness. Your office space needs to be well-lit, well-conditioned, and properly ventilated. As Dubai is an arid country, and the atmosphere can be hot on some days, so air-conditioning in every corner of the office is a must. But this is not the only requirement. There are many other things to be considered. Your office space needs to be spacious and organized to motivate an environment of discipline and willingness to work. Otherwise, employees might not be willing to sit for long hours on the office premises, ultimately affecting their work. Let us see what other things we need to take care of:1. Take adviceIf you are unaware of Dubai’s market and the value of its commercial areas, you must consider hiring an agent for this need. A real estate agent might be very helpful in providing insight on the best location to lease or rent an office space, which locality will best suit the nature of your business and which area will attract maximum footfall. When considering an office for rent in Dubai, a consultation from a real estate agent must be considered a viable solution for any recommendations and guidance. This is also important to eliminate legal problems while renting or leasing office space in Dubai.2. The BudgetWhile considering any office for rent in Dubai, you must consider the monetary aspects. Vital details like budget, turnover, hidden costs and charges, the cost of the legal documentation, repair and maintenance costs, security deposit size, etc., need to be considered before leasing or buying any commercial property in Dubai. If your business does well, you are good to go. But if anything turns sour, these charges and the rent can make you suffer huge losses. So, first, you need to be clear on your budget and then decide which area suits you best according to your needs and budget. One must also examine any probable rise in the rent and cost of the property dispensing on the changing market scenarios. This will help you be prepared for unforeseen outcomes when it is time to renew your lease agreement.3. Terms and ConditionsUnlike the shopping discount vouchers, the terms and conditions for renting and leasing commercial property in Dubai are not star-marked. So, you must read and clarify the leasing agreement beforehand. Even if you are giving your office space for rent to someone, you must clarify the terms and conditions with him before signing any legal document. This will help you to prevent any future conflict with the owner. Any terms and conditions like installation and building of cubicles, painting the walls, etc. must be mentioned in the lease agreement before going for any office space for rent in Dubai.4. The agreement is the keyThe rent or lease agreement the two parties sign is the legal bond between them. Everything that needs to be mentioned must be mentioned in the agreement without fail. If you are leasing your commercial property to someone, you must be clear on the following points:The nature of his business.His capital backup.His criminal background (Police verification)The consistency of his business.The scope of his business in the marketIf any of the above things are not considered, there can be a potential loss. So, to avoid any hassle later, you must read the terms and conditions of the agreement and add or delete any clause in the agreement that you don’t concur with.Factors to be considered before leasing an office in DubaiOne must consider many factors before looking for any offices for sale in Dubai or offices for rent in Dubai. Some of these are:Good and well-furnished offices are a must. They must be spacious and ventilated. The office environment should be employee-friendly, and the furniture must be designed considering human factors. This will ensure more employee dedication and productivity.Consider the proximity of your office to other competing companies and assess their impact on your business. For example, if you set up a food joint just outside a mall, it won’t be much successful because the mall already has plenty of food joints. Rather, a food joint in an area where most offices are located will be more advisable because the office workers might rush to the joint during their break time. So, the location you choose to rent or buy should be decided according to the business you run.Ensure enough parking space. Dubai is a rich country, so do not expect the employees to come on bikes and scooters. Also, if you have rented a coworking space, you might have to bear with plenty of vehicles daily. So, if your office premise doesn’t have enough parking, the employees will run hither and wither, ultimately taking a toll on their time and energy.The process of renting office spaces in DubaiThere are probably a lot of legal formalities you will need to complete to be able to rent or lease office space in Dubai. But if you have already hired an agent to do that, you can relax. Otherwise, you might have to undergo a tedious process with the documentation and other things. Hiring a real estate agent can help you in this regard. While going for office space for sale in Dubai, you must consider mobility, facilities, and location. Once you consider these three things, you will find the best place to start your business. This will also help you retain your employees for a longer time.Once you find the right place to set up your office, you must first pay the deposit amount. This amount depends on the owner, but usually, it is the collective rent of 2 months. Next, you need to pay the brokerage to the broker who helped you find the estate. This broker is none other than your real estate agent.The same real estate agent will help you draft the rent or lease agreement in which all the terms and conditions will be predefined. Then, you must take a licence from the Dubai Electricity Department (DED). After this clearance and a few other documents, the place will be all yours. Do not forget to make any negotiations before signing the agreement. If you need anything changed or altered, get it done before signing the agreement.Find the right locationBefore you pay your rent or deposit or even start renting an office space, looking for the perfect location for your business is crucial. For example, if you want to open an IT consultancy, find a location that can attract the maximum workforce and is considered an IT hub. If you want to open an art gallery, make sure you open it in an area where maximum tourists visit so that your gallery gets maximum exposure. Based on your budget and other things, you must look for an ideal location to set up your business in.ConclusionFinally, it can be said that renting or leasing a commercial space in Dubai can be a very intelligent investment in your business. Depending on your business type, any commercial property is available for rent and lease in Dubai – offices, retail stores, coworking spaces, factories, warehouses, etc. But, one thing that needs to be taken into account is before going for any office space for rent in Dubai, you must consider hiring a real estate agent. He will guide and recommend you the best, depending on your business and budget.  

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Commercial Leasing
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Guide to searching your first office for rent in Dubai

Sep 16, 2022