Key Factors to Consider When Evaluating Commercial Property Locations in Dubai: A Step-by-Step Checklist

Choosing the right commercial property in Dubai is a critical decision for business owners and investors alike. The city offers a dynamic real estate market with attractive opportunities but it’s essential to evaluate various factors before committing to a location. Whether you're setting up a new business or expanding an existing one, this step-by-step checklist will help guide your decision-making process.In this article, we’ll walk you through the key considerations when evaluating commercial property in Dubai, ensuring that you make an informed decision that aligns with your business needs.1. Understand Market Trends in Dubai Real EstateBefore diving into specific locations, it's important to grasp the current market trends in Dubai real estate. Are commercial property prices rising or falling? Which areas are experiencing growth? By staying informed on these trends, you can make a sound investment and ensure long-term value for your property. A good way to check how current communities are performing is to watch out for CRC's quarterly market reports and monthly snapshots.Some neighborhoods in Dubai are undergoing rapid development, while others offer stability. Researching these trends will help you avoid areas that may seem promising now but could lose value in the future.2. Accessibility and Transportation LinksA prime commercial location should be easily accessible to clients, employees and suppliers. Consider the proximity of public transportation, major roads and highways. In Dubai, areas near metro stations, such as Sheikh Zayed Road, Downtown Dubai and Business Bay, tend to be popular choices due to their connectivity and ease of access.Ensure the property is convenient for foot traffic if your business relies on walk-ins, or consider the availability of parking if customers are likely to drive.3. Proximity to Target DemographicsWhen evaluating commercial property locations in Dubai, it's crucial to consider your target audience. Is your business aimed at professionals, tourists or families? Selecting a location that attracts the right demographic is key to your success.For instance, luxury retailers might benefit from being situated in Downtown Dubai or Dubai Marina, while businesses catering to families may find more foot traffic in residential areas like Jumeirah or Al Barsha.4. Future Developments and InfrastructureThe Dubai real estate market is constantly evolving, with numerous infrastructure projects in the pipeline. Research any planned developments near your prospective commercial property. Upcoming metro stations, shopping malls or office complexes can significantly boost the value and appeal of a location.However, it's also important to weigh the impact of construction projects. While future developments can enhance property value, ongoing construction may cause disruptions.5. Commercial Property Regulations in DubaiDubai has specific laws governing real estate transactions and property use. When choosing a location, it's essential to understand Dubai property regulations and ensure that your business activities align with zoning laws. Some areas are designated for retail, offices or industrial purposes, so it’s important to choose a location that complies with local regulations, if you are ever unsure it is best to consult with commercial real estate experts to ensure that your intended business activity/concept aligns with the regulations. Consult with a legal expert or property consultant to make sure you understand the legal landscape and avoid any costly mistakes.6. Competitive AnalysisInvestigate the competition in the area. Are there similar businesses nearby? While a certain amount of competition can indicate a healthy demand, an oversaturated market might make it difficult for your business to thrive.On the other hand, clustering your business in an area known for your industry can bring benefits. For example, tech companies tend to thrive in Dubai Internet City & DIFC, while fashion retailers may prefer the bustling Dubai Mall area.7. Safety and SecurityIn any city, safety is a top priority for businesses and employees. Dubai is known for its low crime rate, but some areas may offer higher security features than others. When evaluating commercial property in Dubai, assess the availability of security services, surveillance and the overall safety of the neighborhood.8. Leasing Terms and CostsUnderstanding the financial aspects is crucial when selecting a commercial property. Compare leasing terms across different locations and consider hidden costs such as service charges, maintenance fees and fit-out costs.Additionally, consider the potential for negotiation. In a competitive market, landlords may offer favorable leasing terms, especially if there is a strong demand for long-term tenants.9. Business Licensing RequirementsCertain locations in Dubai may require specific licenses for your business to operate. When reviewing potential properties, ensure that you understand the relevant licensing regulations. For example, setting up a retail shop in a free zone may have different requirements than a location in mainland Dubai.ConclusionEvaluating a commercial property location checklist is vital for making the right choice for your business in Dubai. From market trends to accessibility, future developments and Dubai property regulations, every factor plays a crucial role in determining the success of your venture.By following this step-by-step checklist, you'll be well-prepared to choose a commercial property that supports your business goals and ensures long-term growth in one of the world’s most dynamic real estate markets.About CRCCRC Property in Dubai is a leading commercial real estate brokerage, specializing in helping businesses find the ideal commercial properties across the UAE. With deep expertise in the Dubai market, CRC offers a wide range of services including leasing, sales and investment advisory for offices, warehouses, retail spaces and more. Their team of experienced consultants provides personalized solutions, ensuring clients find properties that align with their business needs, budget, and future growth plans. CRC Property's in-depth market knowledge and commitment to client success make them a trusted partner in Dubai’s competitive commercial real estate sector.

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How to Value Your Commercial Property

 Valuing your commercial property accurately is essential for various reasons, whether you're looking to sell, buy or refinance. An accurate valuation ensures you understand the true worth of your asset, helping you make informed decisions and maximising returns. This article explores the importance of commercial property valuation, five different valuation approaches and how CRC Valuations utilises these methods to provide comprehensive property assessments.Why It's Important to Value Your Commercial Property Informed Decision Making: Knowing the value of your commercial property helps you make educated decisions regarding sales, purchases, and investments.Financing and Refinancing: Accurate valuations are crucial when seeking loans or refinancing existing mortgages. Lenders require precise valuations to determine loan amounts.Taxation: Property taxes are often based on the assessed value of your property. Accurate valuations can prevent overpayment.Insurance: Ensuring your property is insured for its correct value protects against losses and reduces the risk of underinsurance.Investment Analysis: Investors use property valuations to assess potential returns and make strategic investment decisions.The Five Valuation ApproachesComparative Method: This approach involves comparing the property with similar properties that have been recently sold. Factors like location, size, condition and lease terms are considered.Income Capitalization Method: This method calculates the property's value based on its ability to generate income. It involves determining the Net Operating Income (NOI) and dividing it by the capitalisation rate.Cost Method: This approach estimates the value of the property by summing the land value and the depreciated cost of constructing the building and improvements.Residual Method: Used primarily for development properties, this method calculates the property's value based on its potential for future development. It considers the gross development value minus the costs of development and a profit margin.Profit Method: Often used for properties like hotels or restaurants, this method values the property based on the profit it can generate. It involves analyzing the business's revenue and deducting operating expenses to determine the profit attributable to the property.Using The Five MethodsWhen valuing a commercial property, it's recommended to use at least two methods: a primary method and a secondary one for cross-referencing. This ensures accuracy and reliability. Each method takes into account various property characteristics such as location, specification, condition, size and types of lease contracts in place. Applied rates are adjusted based on these elements to reflect the property's true value.CRC Valuations: Comprehensive Property Valuation ServicesCRC Valuations excels in applying all the aforementioned methods to provide in-depth property assessments. The team possesses the experience and knowledge to value all property types accurately, ensuring compliance with international industry standards.The valuers at CRC Valuations have the necessary skills and qualifications to undertake valuations according to international standards such as RICS (Royal Institution of Chartered Surveyors), IVS (International Valuation Standards) and RERA (Real Estate Regulatory Authority) guidelines. Their expertise ensures that all valuations are thorough, accurate and reliable.Valuation Services Offered by CRC ValuationsCRC Valuations provides comprehensive valuation services throughout the UAE for various purposes, including:Secured Lending: Accurate property valuations are essential for securing loans, with lenders relying on these valuations to determine the loan amount.Auditing and Accounting: Businesses require precise property valuations for financial reporting, ensuring compliance with accounting standards.Acquisition and Disposal: Valuations are crucial when buying or selling properties, helping parties understand the true market value.Feasibility/Highest and Best Use Analysis: Assessing the most profitable use of a property helps in making strategic development decisions.Internal Decision-Making Purposes: Businesses often need property valuations for strategic planning and internal assessments.Applying Valuation MethodsCRC Valuations uses the five valuation methods based on the specific requirements and nature of the property. For instance:Comparative Method: Ideal for properties in established markets with sufficient comparable data.Income Capitalization Method: Suitable for income-generating properties like office buildings or rental apartments.Cost Method: Used for unique properties or those with no recent sales data for comparison.Residual Method: Applied to development sites to determine their potential value post-development.Profit Method: Best for business properties like hotels or restaurants where the property's value is closely tied to the business's profitability.Ensuring Accurate ValuationsCRC Valuations ensures that each method is appropriately applied by considering the property's unique features and characteristics. This includes:Location: The property's location significantly impacts its value. Prime locations command higher values due to demand.Specification and Condition: The quality and condition of the property influence its marketability and value.Size: Larger properties generally have higher values but must be assessed in context with their use and demand.Lease Contracts: Existing lease terms, tenant quality, and lease duration affect the property's income potential and consequently, its value.ConclusionValuing your commercial property accurately is vital for making informed decisions, securing financing, and maximizing investment returns. Utilising at least two valuation methods ensures a comprehensive and reliable assessment. CRC Valuations stands out in the field with its expertise, adherence to international standards, and application of all five valuation methods. Whether for secured lending, auditing, acquisitions or internal decision-making, CRC Valuations provides precise and detailed property valuations across the UAE, helping clients navigate the complex real estate market with confidence. Contact us today! 

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Property Valuation
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How to Value Your Commercial Property

Jun 26, 2024

Global High-Net-Worth Individuals Set to Invest $408.3 Million in Abu Dhabi Real Estate

Abu Dhabi's real estate market is poised for a significant boost as high-net-worth individuals (HNWIs) from around the globe prepare to invest $408.3 million in residential properties. This burgeoning interest highlights Abu Dhabi's growing appeal as a premier destination for luxury real estate investments. Record-Breaking Property Transactions in 2023The year 2023 was a monumental for Abu Dhabi's real estate sector, registering a record 15,653 property transactions. This figure represents a remarkable 73.7% increase compared to 2022. The total value of these property deals soared to Dh87.1 billion, a substantial rise from the Dh61 billion recorded the previous year.Surge in Non-Resident InvestorsOne of the most notable trends of 2023 was the influx of non-resident investors into Abu Dhabi's real estate market. The capital welcomed 1,098 non-resident investors, marking an impressive 175% increase over 2022. This surge underscores Abu Dhabi's growing reputation as a lucrative and attractive destination for international investors.Tessa Lowe, Manager of CRC Abu Dhabi states “The Government intends to expand property rights further for foreign investors to improve the attractiveness of the Emirate as an investment destination. Foreign nationals are permitted to own real estate in the Emirate, within specially designated zones.”Tessa Lowe, CRC Abu Dhabi ManagerFurther touching on this, Ms. Lowe stated “Abu Dhabi has taken important steps in recent years to speed up and streamline its activities through a comprehensive and fast faced restructuring program.”Abu Dhabi's Growing AppealSeveral factors contribute to the rising interest in real estate in Abu Dhabi. The city offers a strategic location, a robust economy and a high standard of living. Additionally, Abu Dhabi's continuous development of world-class infrastructure and luxury residential projects makes it an ideal investment choice for HNWIs.The city is investing strongly in expanding and upgrade tourism and cultural offerings with significant projects. Tessa Lowe commented “With large amounts of funds and energy being invested into the tourism sector, Abu Dhabi is positioned to become one of the most attractive places for high-end tourists, while offering new facilities and leisure activities to the Emirates permanent residents.”A Promising FutureThe substantial investments by HNWIs are expected to further stimulate the real estate market in Abu Dhabi, fostering economic growth and development. As more investors recognise the potential and stability of the Abu Dhabi real estate market, the trend of increasing property transactions and values is likely to continue.

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Tecom Group's $463 Million Investment: A Transformative Boost for Dubai's Commercial Real Estate

Tecom Group has made headlines with its substantial $463 million investment to acquire and develop key commercial and industrial properties in Dubai. This strategic move includes acquiring two office buildings in Dubai Internet City and a significant land parcel in Dubai Industrial City from Dubai Holding Asset Management (DHAM). Additionally, Tecom will develop six new office buildings in Dubai Design District (d3) to cater to the burgeoning demand from the design, fashion, and creative sectors. This development underscores Tecom's commitment to enhancing Dubai's commercial real estate market and supporting its growth prospects.Tecom Group's Acquisition of Two Grade A Office TowersOne of the cornerstone elements of this investment involves acquiring two grade A office buildings in Dubai Internet City from DHAM for Dh420 million. These properties, offering a gross leasable area of 334,000 sq ft, are highly occupied and house esteemed regional and international tech companies. The high occupancy levels and premium tenant mix indicate strong, stable returns for investors, making this a highly attractive investment proposition.Moreover, Tecom's acquisition of 13.9 million sq ft of industrial land in Dubai Industrial City for Dh410 million from DHAM is a clear signal of confidence in Dubai's ongoing economic growth. This expansion opens up new opportunities for businesses seeking premium industrial spaces, further enhancing Dubai's appeal as a global business hub.Dubai Design District's Dh689 million Investment A significant aspect of Tecom's strategy involves Dubai Design District (d3), a subsidiary of Tecom Group, acquiring 629,000 sq ft of gross floor area for Dh136 million as part of phase two of the d3 Design Quarter development. Additionally, Tecom will invest Dh689 million to develop six grade A office buildings with a gross leasable area of 503,000 sq ft, with completion targeted by 2028.This development is driven by strong demand from the design, fashion, and creative industries, highlighting a growing market need. The creation of high-quality office spaces in d3 is expected to attract a wide range of creative businesses, further cementing Dubai’s reputation as a center for innovation and design.Why This Investment Matters & What This Means for Dubai's Business Landscape Tecom Group’s strategic investment reflects a profound confidence in Dubai's commercial real estate market. For investors, the acquisition of high-occupancy properties in prime locations like Dubai Internet City and the development of new office spaces in d3 offer promising returns and long-term value. The focus on expanding industrial space in Dubai Industrial City aligns with broader economic trends, supporting the city's role as a logistics and manufacturing hub.From a business perspective, the influx of new, high-quality office spaces caters to the increasing demand from sectors that are pivotal to Dubai’s diversified economy. The design, fashion and creative industries, in particular, will benefit from state-of-the-art facilities, fostering an environment of creativity and innovation.Moreover, Tecom's investment aligns with Dubai's vision to be a leading global city for business, tourism and innovation. By enhancing the commercial real estate landscape, Tecom is not only supporting current economic growth but also paving the way for future opportunities. This strategic move positions Dubai as an attractive destination for international companies looking to establish or expand their presence in the region.Tecom’s CEO, Abdulla Belhoul, emphasised that this "ambitious Dh1.7 billion ($463 million) strategic acquisitions and development plan will capitalise on the unique opportunities that Dubai’s commercial real estate market offers.” This statement encapsulates the essence of Tecom's investment strategy: leveraging Dubai’s strengths to create value and drive sustainable growth.In conclusion, Tecom Group's $463 million investment is a transformative step for Dubai's commercial property market. It offers robust opportunities for investors and businesses alike, reinforcing Dubai's status as a premier global business hub.Are you looking to invest in Commercial Property in Dubai? Browse our portfolio.  

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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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