Why Choose To Invest In A Commercial Space In Dubai
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Why Choose To Invest In A Commercial Space In Dubai

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Overs the last two decades, Dubai has earned a reputation by championing projects that have made headlines all over the world. It has offered property investors the opportunity of competitive and steady returns, making it one of the most popular places for foreign investment.

A recent report places Dubai among top-10 global cities for best rental returns, with rent and capital amounting to a robust average of about 120% gains. The continuous rise of interest from investment makes the city very fertile ground for continuous growth and development. Meanwhile, the Dubai Land Department (DLD) released a report that in 2018, of all the real estate properties sold in Dubai, a huge 18.5% were all acquired by foreign nationals.

In particular, commercial real estate in Dubai can be a great option for investors, with many great properties available on sites like Bayut. Here are the key reasons why you should invest in Dubai commercial space.

Why Choose To Invest In A Commercial Space In Dubai

Growing High Demand

It is no longer a secret that the commercial and business sectors in Dubai are growing steadily. This has made it a hub for real estate investors because the growth in these industries means a higher demand for commercial real estate. The International Monetary Fund (IMF), alongside the UAE Department of Economic Development, has forecast even stronger economic growth and development, with emphasis placed on real estate tourism and the manufacturing industries.

The demand for commercial properties is very high and commercial development is ever growing, this predicted growth will bring about great returns on investments such as high rental yields as well as an increase in the value of properties over time.

Relaxed Visa Rules And Regulatory framework

As an investor, you are now able to apply for residency permit when you purchase a property that is worth Dh1 million and above. The country has now implemented and enacted a law which allows full ownership of certain types of companies by foreign investors and also recently introduced and in effect is the 10-year residency visa for specialists and investors.

When looking for the best-regulated market in the GCC, you can bank on the Dubai real estate market. This shouldn’t come as a surprise with the government having adopted profitable measures like the rental cap, rental increase calculator, escrow regulation, and settle center for rental dispute. All of this make Dubai a very convenient and attractive market for foreign investors.

Opportunity For Leaseback Arrangements

Investing in commercial property will avail you with the opportunity of a leaseback arrangement. UAE regulations in this regard are beneficial to both investors and occupying owners. When you make a leaseback arrangement, the previous owner of the space sells the property but continues to lease it back from the new owner. The previous owner will become the leaser and will have the opportunity of using a favorable space without having to take care of the ownership cost and still receive a welcome cash injection from the sale. The current owner, on the other hand, will have an investment that comes with a guaranteed return from the rental for a long period of time and a stable tenant.

High Return On Investment

Real estate offers an opportunity for a long-term investment that offers stability and reasonable return on investments over time. However, the returns will depend greatly on market you invest in. The great news is that the property market in Dubai has shown a great return on investment. According to reports, investors get an average of 6% to 7% returns from rentals.

As the population of the city of Dubai is growing each year, the real estate market is soaring. Smart investors are trying to keep up with the growth in rental demand by purchasing property. When it comes to commercial real estate, this represents even better financial opportunities than the residential thanks to Dubai’s has a well-established economy for commerce, business and trade.

Easy To Maintain

Compared to other types of investment, commercial space is easier to maintain. The responsibilities that come with repairs and maintenance of a property can be overwhelming. However, in Dubai commercial real estate, the tenants normally take care of the costs of property maintenance. In Dubai, the lease length of commercial real estate is always higher, meaning less tenant turnover, and therefore less rime and effort required in terms of finding tenants, managing leases, and so on. Investors that don’t want to be bothered with the cost of repair and maintenance as well as continuously dealing with new tenants would be advise to opt for a commercial space.

The real estate market in Dubai has shown high demand and great returns over the years, thanks to its economy, security, and political stability. With this growth, the demand for commercial spaces is growing steadily and this is not showing any signs of changing in the future.