Dubai is a tax-free city where foreign investment is very easy and profitable thanks to favorable laws for the taxation and foreign exchange management. According to Department of Economic Development, Dubai economy is growing at 4.6 % in comparison to 4% (Estimated) in 2014. Real estate and construction may grow about 6 % each while it was 3.5% (estimated) last year.
Why Invest in Dubai Commercial Real Estate
Investing even within real estate, investor or buyer is confused whether to invest in plots, residential or Dubai commercial real estate. There are some professional investors who are investing in Dubai commercial real estate, mainly for the following reasons:
Growth in Dubai Commercial Real Estate
This is the right time for the Real Estate investment in Dubai commercial real estate. According to Greenhouse, a leading real estate agency in Dubai, with the positive growth in economy and booming of diverse businesses, the demand of Dubai commercial real estate is all-time high. Dubai commercial real estate properties include offices, commercial plots, labor and warehouses, shops, shopping centers, clinics and hospitals.
Office rents in Dubai are still rising, this is one of the biggest benefits of investing in Dubai commercial real estate, and it also leads to a good income stream, somewhat higher than residential properties. Also, commercial property lease contain clauses dictating that rent reviews are “upward only” meaning it cannot be lesser after review.
The rent in Dubai commercial real estate sector is key aspect in commercial real estate pricing. The rent in commercial properties is usually high which means if you sell it after lease, your property value may get high on the very next day of lease.
Easy to Maintain
A commercial property is easier to maintain and lease out. As the responsibilities for repairs and maintenance are different, unlike residential properties, in Dubai commercial real estate, tenants are typically responsible for the costs of property maintenance. Also since the lease length is higher in Dubai commercial real estate, it requires less time and investment from the lessor. All these benefits make it easier for international Investors to invest in Dubai commercial real estate and then maintain it.
Easy to Mortgage
It is very easy to mortgage a commercial property in Dubai. The banks are very easy when it comes to finance commercial properties. You can have higher amount of mortgage which means you can buy expensive commercial property in comparison to residential real estate in Dubai.
While the decision to make a business plan, and start your own business may take a while, if you invest in a Dubai commercial real estate while you are earning a fixed rental profit, it helps you have some savings when you actually materialize your dream.
There is great pride to know that you own a property in Dubai which produces a profitable income. If your commercial property is occupied by a renowned brand, it will give you financial security besides the ownership pride.
Are you looking to invest in Dubai commercial real estate?
Greenhouse Real estate Dubai offers a wide range of offices for sale and rent, ranging from high-rise downtown offices to small office space in business bay, we have offices from vary basic to luxurious commercial real estate just for you. For more information, call +971 4380 6480.