Retail shops are a common investment choice in every neighbourhood in Dubai. Dubai is continuously transforming into a global city. Therefore, one can rarely make a mistake by purchasing a retail shop in Dubai. The city features safe standards, a proactive government, scenic skyscrapers and touristic properties. For this reason, most people find it highly convenient to conduct business in Dubai. It is a global hub for foreigners, and new businesses are formed daily. Choosing the right retail shop depends on your financial constraints and goals. There are several reasons why buying a retail shop in Dubai is the best decision you can make. This article will highlight some of these reasons.
Return on Investment
The demand for real estate in Dubai is directly proportional to its growing economy. The Emirate’s gross domestic product grew by 4.6% in 2018 and is expected to keep escalating. This means a high influx of foreigners in the country, providing better business opportunities. This will lead to a good return on investment in your retail shop.
Affordable payment plans
One of the advantages of buying a retail shop in Dubai is that the ongoing projects are available at significantly lower prices. Attractive and feasible payment plans are a lucrative option for investors. Whether a first-time buyer or a seasoned investor, you can benefit from Dubai’s financial flexibility and off-plan real estate offers.
Long-term residence option in Dubai
You can benefit from the golden visa if you buy any property, including a retail shop totalling AED 2 million. This option provides investors more stability as they can sponsor their families in Dubai. A golden visa allows you to remain in the country for ten years without spending on your residence permit.
One of the safest cities in the world
Undoubtedly, Dubai is one of the safest cities in the world. Various online platforms enable business owners to report crimes anonymously. Dubai is consistent in enforcing the law. The crime rate in Dubai is almost non-existent, and this is just one of the many benefits of owning a retail shop in Dubai. Business owners do not have to worry about theft in Dubai.
Technological advancements in the city
Dubai is continuously developing into a smart city each day. With its improved public transport system, it is incredibly convenient to conduct business in Dubai. The daily commute is easily accessible to residents in Dubai. This means that the foot traffic will still be significant even if your retail shop is not situated in a prime location.
Availability of freehold areas
There are designated areas in Dubai where foreign nationals can invest in properties without having a local investor. These areas are known as freehold areas. Some well-known freehold areas include Downtown Dubai, Dubai Marina, DIFC, Business Bay and Al Barsha. In addition to being freehold areas, these are some of the prime locations in Dubai with excellent foot traffic. Owning a retail shop in these areas in Dubai can be highly profitable for business owners.
Stable political environment
Dubai has emerged as a politically stable city over the years. Due to its political status, the UAE continues to prosper in terms of its GDP. Authorities are focused on building the country’s infrastructure and services. The country also encourages diversification in the economy. For business owners, this means there is a low risk of losing the value of their retail property in Dubai.
Some things to consider
Business License
One of the significant steps in setting up a retail shop in Dubai includes acquiring a business license. The Department of Economic Development in Dubai provides approvals and a trade license.
Location
Dubai consists of mainland jurisdiction and free zone jurisdiction. A key factor is selecting the appropriate location for your retail shop in Dubai. Location is one of the main factors in the success of any business. Free zone areas like DMCC, Jumeirah Lakes Towers and DIFC are emerging as some of the busiest areas in Dubai. Owning a retail shop in these areas can be profitable.
Local sponsor
You must have a local sponsor if you base your retail shop in the mainland jurisdiction. The local sponsor will be responsible for 51% of the shares. This rule does not apply if you choose to have a retail shop in a freehold/free zone area.
Legal formalities
As a business owner, you will need PRO services for your retail shop in Dubai. Furthermore, trademark registration and permissions from different authorities must be acquired. This depends on the nature of your business.
Conclusion
The real estate market in Dubai continues to grow due to properties’ appreciating value. Current market conditions in Dubai are heavily in favour of property buyers. Buying a retail shop can be one of the wisest investments. Working with a well-established real estate agency to identify market trends is essential. Moreover, real estate agents are seasoned negotiators and can help you find a property within your budget. Real estate agents can also help you with the legal technicalities of purchasing a commercial property in Dubai.
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