DUBAI

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Economic activity No. of Establishments
Manufacturing 4,566
Construction 2,887
Wholesale & retail trade and repair services 36,448
Hotels and restaurants 3,006
Transportation, storage, and communication 3,289
Real estate & rentals and business services 6,098
Social and personal services 4,484
Total 60,778

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Why invest in Dubai Commercial?

The real estate market in Dubai is one of the most thriving worldwide as it expanded a lot during the last few years. The most important factors leading to the development of the real estate market in Dubai are: the tax system, the quality of the buildings and the rapidity they are built with, the demand of investors looking to set up businesses in the region.

  • The prices of properties are lower than other real estate investments in Europe, Asia or America, even if the demand in the real estate sectorhas increased
  • Property is a good investment during times of inflation, as the costs of maintenance can be added to the rent of property
  • Rentals generate a good income and even if the value may vary; in Dubai, real estate properties deliver an 8 to 10% rent return
  • Real estatehas a residual value even if it might decrease
  • Investors from all over the world are allowed to purchase or rent properties in Dubai
  • Dubai banks lend money for property purchases

According to Greenhouse, a leading real estate agency in Dubai, with the positive growth in economy and booming of diverse businesses, the demand for Dubai commercial real estate is an all-time high. Dubai commercial real estate properties include offices, commercial plots, labor and warehouses, shops, shopping centers, clinics, and hospitals.

Office rents in Dubai are still rising, this is one of the biggest benefits of investing in Dubai commercial real estate, and it also leads to a good income stream, somewhat higher than residential properties. Also, commercial property lease contains clauses dictating that rent reviews are “upward only” meaning it cannot be lesser after review.

The rent in Dubai commercial real estate sector is a key aspect of commercial real estate pricing. The rent in commercial properties is usually high which means if you sell it after the lease, your property value may get high on the very next day of the lease.

Commercial property is easier to maintain and lease out. As the responsibilities for repairs and maintenance are different, unlike residential properties, in Dubai commercial real estate, tenants are typically responsible for the costs of property maintenance. Also since the lease length is higher in Dubai commercial real estate, it requires less time and investment from the lessor. All these benefits make it easier for international Investors to invest in Dubai commercial real estate and then maintain it.

It is very easy to mortgage a commercial property in Dubai. The banks are very easy when it comes to financing commercial properties. You can have a higher amount of mortgage, which means you can buy expensive commercial property in comparison to residential real estate in Dubai.

While real estate markets all over the world are falling back, the Dubai real estate market has remained the same or even increased in both commercial and residential segments. Even if businesspersons and common people looking to buy a property in Dubai have been cautious during the last few years, they are still purchasing residential properties as the government has supported and assured the real estate market’s stability. The Dubai residential sector has been flourishing due to the apartments and villas purchases. Also, vacation properties are also growing considerably, and they include condos, villas, and apartments.

The commercial real estate market in Dubai mainly consists of office spaces, shopping centers, labor houses, and warehouses. The recession had an insignificant impact on commercial real estate property, as the “business capital” is continuously growing in Dubai.  As investors keep coming in, and companies keep developing and requesting workforce, office spaces and labor houses for immigrants are highly demanded in the commercial real estate sector. According to researchers, the request for warehouses, hospitals, and shopping centers is also significant.

Several recent surveys have shown the last few years yielded good returns on investment for commercial real estate developers in Dubai. One of the main reasons this industry remains among the strongest is the development of other sectors such as retail, office, and industrial ones. The residential real estate industry is also stable regarding purchases and rentals. For investors, the income from real estate is usually a stable one, as rentals provide an 8 to 10% return on the investment in Dubai. Also, the Dubai real estate market is open in comparison to other international markets and provides a variety of opportunities regarding investment. In special cases, such as applying for a loan, real estate can also be a good collateral.

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