Guideline| Commercial Property Investment in Dubai
Dubai, being the international commercial hub for business in Asia, undergoes a continuous process of property sale and purchase throughout the year. This emirate has become ideal choice for commercial business investment by offering most luxurious and technologically advanced business facilities, and inexpensive property prices in Dubai, as compared to the property price in New York and London. For investors, Greenhouse has listed a guideline for making commercial property investment in Dubai.
Know Your Dream Property
Before making any property investment in Dubai you need to make a complete planning to ensure that huge amount of money you are investing will give you pride on your decision. Here are a few steps.
1. Know Your Objectives for Commercial Property Investment in Dubai
* If you are planning for doing business in future or immediately, you must search the best suitable location for your business. Analyze all aspects, for example what is the size and type of property you need.
* If you are making commercial property investment to generate a regular revenue stream, you should invest in properties which have constant rent (unlike profit sharing). You can invest in ATM space, or properties for schools or banks.
* If you want to invest to get profit by resale, you can invest in off-plan properties so that by the time it’s delivered to you, there will be some significant appreciation.
2. Know Your Budget
Know your budget with finances from all reliable sources like self-financing and mortgage.
* You must decide whether you want to make entire investment in a go or in installments. Also if you want fund it on your own or you need a mortgage.
* How much amount you want to invest and what percent of mortgage you need to make commercial property investment in Dubai.
3. Know Suitable Location
Before making commercial property investment, you need to know the endorsed location from several viewpoints like
* Is the property location suitable for your entrepreneurship goals.
* Future possibilities for the property value appreciations.
* The possible type of tenancy like fixed rent or profit sharing (e.g. Hotel space)
Mortgage Guidelines for Commercial Property Investment
Dubai Mortgage market is highly competitive as you can find numerous options and also negotiate on terms. The interest rates can be as low as 4% annually. Many banks and financial institutions offer lesser interest rates and highest mortgage percentage for buy to let properties. The usual upper cap for the mortgage for commercial properties is as below:
- For UAE Nationals: 90% of Property worth.
- For Expatriate Residents: 85% of property worth.
- For Non Resident Expatriates- they can also avail property loan but average loan to property value ratio is less (70 to 80%) and rate of interest may be higher.
Investors must negotiate with the seller on time for the amount to be paid by the mortgage agency. In simple cases it takes 4 weeks’ time period however in complex cases it can take more time.
We are here for you!
Looking to make commercial property investment in Dubai? Buying commercial properties in Dubai becomes easy with Greenhouse Real Estate. Contact us to buy anything from retail area to office space and commercial land plots. We will be happy to facilitate you!