Buy Commercial Properties in Dubai
In recent years, Dubai has become one of the most attractive destinations for foreign investors looking to invest in commercial properties, such as offices, plots, and whole building, to name a few. Thanks to several factors such as a stable political environment, a growing economy, and a favorable tax regime, Dubai offers a safe and profitable investment opportunity for those looking to buy commercial properties such as plots, whole buildings, or offices.
One of the main reasons why Dubai is such an attractive destination for foreign investors is the city's stable political environment. This stability is underpinned by the fact that the Emirate of Dubai is a constitutional monarchy with a strong system of checks and balances. In addition, the Government of Dubai has taken steps to create an investment-friendly environment by enacting laws and regulations that provide protection for foreign investors. For example, foreign ownership of property in Dubai is 100% guaranteed, and there are no restrictions on repatriation of profits or capital gains.
Another reason why Dubai is an attractive destination for commercial property investors is the city's growing economy. Thanks to a diversified economy that is largely driven by tourism, trade, and logistics, Dubai was able to weather the global financial crisis better than many other cities around the world. As a result, the city's economy is now once again on the upswing, which bodes well for those looking to invest in commercial properties.
Lastly, foreign investors looking to purchase commercial properties in Dubai can benefit from the city's favorable tax regime. While there is no personal income tax in Dubai, businesses are required to pay corporate tax at a rate of 20%. In addition, there are no capital gains taxes or inheritance taxes levied on individuals. These factors make investing in commercial properties in Dubai an appealing proposition for foreign investors.
The Best Communities in Dubai to Buy Commercial Property
There are many benefits to buying commercial properties in Dubai, especially if you narrow down on some of the prime locations, such as Downtown Dubai, Business Bay, and Dubai Hills Estate. These communities provide increased visibility for businesses, greater foot traffic, a more central location, and easy access to public transportation.
Businesses that are visible to the public are more likely to generate new customers and sales. Foot traffic is also an important factor to consider when selecting a commercial property. If a business is in an area with high foot traffic, they will be more likely to get new customers simply because more people will walk by and see the business. A central location is also beneficial for businesses because it makes them more accessible to potential customers. And finally, businesses located near public transportation have a greater chance of being seen by potential customers who are using public transportation to get around the city.
Commercial properties for sale in Downtown Dubai, Business Bay, or Dubai Hills Estate are wise investments for any business owner or investor. These areas are growing rapidly and offer businesses many opportunities for increased visibility and growth.
This is one of the most popular areas for business in Dubai. It is home to some of the city’s most iconic landmarks such as the Burj Khalifa and the Dubai Mall. Downtown Dubai is also a central hub for business in the city with many corporate offices located here. The area is constantly growing with new developments such as the recently opened Address Boulevard hotel and residences.
This is another popular area for businesses in Dubai. The area is known for its large number of office towers and skyscrapers. Business Bay is also home to the world’s largest mall, the Dubai Mall, which attracts visitors from all over the world. Known as the international business hub of the city, this community is well-connected with excellent access to public transportation including the metro and bus stations.
Dubai Hills Estate
This is a newer development that is quickly becoming a popular choice for businesses in Dubai. The area offers a wide range of commercial properties including office towers, retail space, and warehouses. This modern development also features green spaces and parks which make it a desirable place to work. There are several schools located here as well making it an ideal location for families.
FAQ - Commercial Properties for Sale in Dubai
ROI is the key metric to focus on when investigating commercial properties for sale. However, there are numerous factors that affect ROI including community, facilities and amenities, transportation, size quality market conditions and maintenance costs. If you want to be successful in this arena, due diligence is critical from the get-go in order secure a property that provides reasonable rates of return. In addition, here are some other factors you may want to consider if you're looking to invest in commercial real estate for your business or with the intent of leasing it out:
VAT 9% Corporate Tax: To put it simply, if you're buying or renting a property, the seller or landlord is required to register for VAT. In short, any merchant making annual sales that exceed AED 375,000 must register for VAT. Furthermore, both organizations that manage property and private owners of premises are obliged to register for VAT.
Short-Term or Long-Term Leasing: If you want to lease commercial plots in Dubai for less than ten years, it must be registered through the Ejari system. To do so, simply submit the basic application and accompanying documentation. Although leases can be as short as twelve months, they will automatically renew unless both parties agree not to continue the agreement.
Shell/Core or Fitted Property: There are two types of commercial space in Dubai - shell and core units. Core units come with fixtures and finishings included, while shell units don't. If you're considering purchasing commercial property in Dubai, think about which type of unit is right for you and your business' needs. With how competitive the real estate market is nowadays, there's an influx of fully furnished commercial spaces on the market from landlords wanting to charge higher rent prices.
You can either open a business on the mainland or in a free zone when you're an entrepreneur or business owner in Dubai. The difference between the two is seen in the rules that control ownership. With a free zone company, foreign nationalities own 100% of it, but they are only allowed to do trade and business with entities located outside of UAE. UAE nationals were once required to serve as sponsors and purchase a 51% interest in companies situated on the Dubai mainland. However, this changed in 2018 when the 100% foreign ownership regulation was put into effect, subsequently leading to a rise in foreign corporate establishments across over 30 freezones located throughout Dubai.
Commercial properties in Dubai are enormously beneficial to businesses. They provide many features that appeal to business owners, including single and full-floor offices, a whole building, retail spaces, warehouses labor camps and even staff housing structures. The ideal way to locate the perfect commercial property is through a real estate company that specializes in finding properties with high rental yields.
There are several good communities to buy commercial properties in Dubai. As with any investment, it's important to do your research and consult with experts in order to make the best decision for your needs. Some of the most popular neighborhoods for commercial property investments include Business Bay, Downtown Dubai, and Dubai Hills Estate.
Business Bay is a central business district in Dubai that offers a variety of office space options, as well as retail and hospitality opportunities. Downtown Dubai is home to some of the city's most iconic landmarks, including the Burj Khalifa and the Dubai Mall. It's also a popular destination for businesses, due to its prime location and modern infrastructure. Finally, Dubai Hills Estate is a master-planned community located in the heart of Dubai that's perfect for businesses looking for a more suburban environment. With its convenient location and ample amenities, it's no wonder why so many companies are choosing to set up shop in this thriving community.
No matter which neighborhood you choose, investing in commercial property in Dubai is a smart move that will surely pay off in the long run.
According to the latest Dubai market report from CBRE, average residential property prices between January and May 2022 rose by 10.9%. This includes a 9.6% rise in apartment prices and a 19.8% rise for villas. The survey revealed that monthly prices for apartments increased by 0.4%, while those for villas went up 1.2%.
Some people may be concerned about the rising cost, but it's worth considering that this is due to an influx of new talent joining the workforce in Dubai as well as post-pandemic growth in tourism rates.
Not only is the Dubai real estate market growing rapidly, but transaction activity is also on the rise. In the year 2021 alone, there were over 80,000 transactions worth AED 300 billion. By August of 2022, that number had already reached 62,000 sales volume, totaling AED 165 billion. Q4 2022 is expected to see even more growth. With its strong economy and high capital appreciation and rental yields, Dubai is the ideal place to invest in right now.
Real Estate Investment (Book/Website): The Royal Institution of Chartered Surveyors (www.rics.org) is one of the best websites to visit when you want to learn about investing in commercial real estate. RICS promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction, and infrastructure. Also consider reading the following best-selling books: Invest Like a Bank by Beaux Blast; Commercial Real Estate for Beginners by Peter Harris; and Skip the Flip: Secrets the 1% Know About Real Estate Investing by Hayden Crabtree.
Commercial Real Estate Courses: The UAE offers a plethora of online programs with certification in commercial real estate upon successful completion of the courses. These usually cover topics such as property management, finance, marketing and appraisal, negotiation as well legal issues surrounding the field. Knowledge Village is one great example of where you can take these types of classes.
Online Forums: provide the perfect opportunity to connect with like-minded individuals. You can post questions and answers, find helpful advice, and discover others who share your interests. For example, www.reddit.com is a great place to get started. It's free to sign up and create a profile, after which you can begin posting content, commenting, and interacting with other users. D&B Properties also hosts many commercial-related panel discussions throughout the year that you can sign up for; keep an eye out for upcoming events by subscribing to our monthly newsletter.