If one‘s intention is to sell locate their office then it is wiser to pay rent to oneself. As soon you have sufficient capital to make the down payment, you can convert the rental payment into mortgage payment that will generate a return – just like buying a home instead of choosing to rent an apartment in Dubai.
A real estate agent who deals in commercial properties would be a great help. A well reputed realtor can help you save time. Moreover, an experienced and competent realtor can give knowledge about demographics, plans for growth and new developments in the area.
The very nature of the commercial property one intends to buy affects the transaction and your choice. For instance, there is a big difference between buying a restaurant building and a corporate office space. You may be purchasing a commercial building as a location for your business or as an investment. If you are purchasing for investment, then you might want to know about the highest yielding prospects. However, if you want to locate your office then you might look at other factors that will affect your business directly
One can use that space later on, and can generate rental income on extra space bought.
Some of the areas in Dubai do not allow specific types of businesses, thus land use laws can affect the choice you make.
Some commercial buildings do not offer parking spaces, for some businesses this can be a major drawback.
Sort out all required documentation that includes
1. Certificate of Incorporation
2. Memorandum and Articles of Association
3. Board Resolution
4. Signing Authority letter
5. Passport copy of signatory
1. All of the above documents attested by the UAE Embassy
This preserves your capital for better utilization, keeps your cash flow high and allows you to redeploy ‘capital savings’ into other profit-generating business areas. Be sure you understand all of the economics.
One should consider refurbishing, maintenance and air conditioning costs when finalizing a space for office, as it can have a significant impact on costs borne later.
When purchasing a commercial property with intention of generating returns from it, one can eradicate the risk of void periods by purchasing a property with a tenant.
Once you have decided on your property of choice, a sale and purchase agreement will be drawn up confirming the agreed price and your solicitor's details. Once the agreement is finalized your deposit shall be passed onto the owner or landlord to secure the property.
The final stage of the commercial buying process is the transfer of ownership and title from the seller to the buyer. There is usually a transfer fee involved and this can vary from developer to developer.
A competent real estate agency can give access to a quality tenant. A large corporate tenant is most likely not to default on rent and rent it property for a longer period of time.
Freehold property gives the buyer ownership, free of any contract or lease agreement. The buyer of the property does not need anyone for support. The property ownership is however, affected by the rules and regulations of the country.
Free zone is defined as an area within a country for the time being, regarded as being outside the country’s customs territory; hence importers can bring foreign goods without paying duties and excise taxes
Although the buyers of commercial properties in Dubai don’t have to pay any taxes, but a transfer fee of 2 per cent of the property price is charged by the Dubai Land department. Buyers have to pay an additional 0.25% of the value of loan taken if the property is mortgaged.
Service charges for the maintenance of the property can vary depending on the area, location, and facilities provided
The process takes 2 to 6 weeks, depending on the status of the property and procedures involved.
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