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21-07-2007
Global property warnings also apply to Dubai!
Take heed of the warnings about cooling global real estate markets that have now reached Spain and India. Meanwhile, there were 4.2 million unsold homes in the US at the end of April, and the annualized rate of second-hand home sales fell by 2.6 per cent to 5.99 million in April, enough to worry the Wall Street bulls.
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Since 2002, when the ruler of Dubai allowed foreign nationals to buy freehold property in Dubai, much of the interest and focus has been on the residential property market. What many did not realise is that the concept of owning freehold commercial property was also introduced. The demand since then has been soaring of many businesses from small companies to large multinationals coming to Dubai are looking for office or retail space.

High Demand for commercial property in Dubai has brought in new projects like Business Bay and many other commercial towers being developed throughout the UAE.

The demand for commercial space is rising fast with many investors looking to take advantage of the opportunity to achieve high rental yields in the region of 20% return on investment per annum. With the shortage of commercial property, high demand is pushing prices to higher levels. Commercial property in Dubai currently has an occupancy rate of a staggering 9%. With strong demand and only a small fraction of commercial space available, landlords are increasing their prices.

Commercial space, even buying one office in an off-plan development can make more sense as an investment than a residential property.  We are currently marketing both retail and commercial space in Kaizen One, which is a development with excellent investment opportunities in a prime location.

Our commercial department offers services for both the leasing and sale of commercial properties. We’ll help you find the right commercial space for you and help you achieve your business objectives within your specific requirements.

 
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