20 September 2022

What is better for investment: buying a space or a ready-made business in Dubai?

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It is no secret that one of the most reliable ways to save and multiply capital is an investment in commercial real estate.

Dubai is a city with ultramodern infrastructure and a wide range of amenities that attract tourists and expatriates. Therefore, by investing in a prospective object, you can reach a high level of income (ROI within 10-15% per annum) in a short-term period.

Investing in commercial real estate involves one of two options:

  • empty objects for renting out;
  • spaces that are already rented out.

Empty Commercial Property

Buying an empty Commercial property, you will need a lot of resources to find a suitable tenant and manage the property. There are risks associated with the crisis, such as Covid-19, which led to large financial losses, the military situation in Ukraine, or similar to it.

There are objects with long-term leases in high demand among investors, which allow predicting a mid-term return on investment.

Ready-made business to rent

Buying commercial real estate with a long-term lease is the most profitable strategy with high profits (ROI up to 15% per annum). The advantage is that there is no need to spend additional resources on the search for tenants and the conclusion of the contract. The owner receives a profit immediately after the purchase of the object.

Types of commercial real estate for investors

Dubai’s commercial real estate market offers many options for investment and business – from furnished office space to manufacturing plants and factories. Let’s consider the most popular objects.

Office space

The cost of office space in Dubai depends on its location, size, finishing, and whether it is furnished or not. The most popular locations to buy are Business Bay, Jumeirah Lake Towers, Deira, Bur Dubai, and Sheikh Zayed Road.

Co-working Spaces

Co-working spaces in Dubai are gaining popularity among start-ups and entrepreneurs, and freelancers. These facilities allow you to design a workspace as a collective office with a comfortable and corporate environment for employees. A plus is the lower cost of renting the space due to co-payment. The most popular areas to buy co-working spaces are Business Bay, Jumeirah Lake Towers, Sheikh Zayed Road, and Dubai Media City.

Commercial Retail Units

Retail space is in demand in every neighborhood and community in the city and can be bought in both the primary and secondary markets. The most popular locations for buying these units are Jumeirah Lake Towers, Business Bay, International City, Dubai Marina, Meydan, Downtown Dubai, and Dubai Silicon Oasis.

Storage facilities

Purchasing a storage facility is a great investment with a high ROI per annum.

This type of commercial real estate is especially popular with a population that has stopped going to stores and started using courier services. A large number of retail and manufacturing businesses need affordable storage spaces.

The most popular areas for buying a storage facility are Jebel Ali, Al Quoz, Dubai Investment Park, Dubai Industrial Park, Technological Park, Al-Quays, and Al Warsan.

Showrooms

Showrooms are used for the presentation of any product. They are in high demand among companies looking to improve the quality of interaction with customers. The most popular locations to buy this type of commercial property are Ras Al Khor, Al Barsha, Business Bay, and Al Quoz.

Commercial Villas

Luxury properties can be used for both offices and stores. Actual for kindergartens, clinics, restaurants, and showrooms. Commercial villas often have parking lots, a swimming pool, or a garden. The best areas for such properties are Umm Suqeim, MBR City, Jumeirah, Deira, Al Wasl, and Al Safa.

Plants

Dubai is the largest manufacturing center for the country’s prosperity. Here are well-developed industries such as metallurgy, engineering, perfume, cosmetics industry and other areas.

The state provides reduced customs and tax fees, and other benefits to investors. Most factories and plants are located in Dubai Investment Park, Dubai Industrial Park, and Al Qusais.

How to buy commercial real estate?

To avoid scammers and dishonest sellers the ideal solution is to contact qualified real estate experts who are well informed about the Dubai real estate market. The experts have a wide range of the best residential houses and apartments but also liquid commercial properties that will bring investors a high level of income.