Real estate market of the Dubai and UAE. What’s new?

When you invest in business real estate, you get those most currently popular and easy opportunities to multiply your money. And because you’re interested in money investing, you should firstly analyze present demand trends in different areas, choose the profitable place and think of the right investing time — as well as obtain protection guarantees of your investment.

How do you invest?

Dubai is a city, that only a few decades ago turned into a hi-tech metropolis in the center of the desert. Dubai’s population grows rapidly, and that fact keeps a constant demand among domestic and foreign buyers for all sorts of luxurys, more traditional residential and of course commercial buildings. Houses and hotels always get their customers because of a Dubai attractiveness in terms finding best working conditions. Besides, UAE are a popular destination for tourists which number is increasing monthly. From now on Dubai has turned into the business hub all over the Middle East and especially UAE, therefore the business real estate market grows as well. Investments here nowadays looks like a promising type of business, because any foreigner can become the owner of the Dubai house or apartment (thanks for legislationsince 2002).

What’s changing?

Demand can be high, but prices in Dubai change all the time — there’s no way to call them stable. A peak of the apartment prices was reached in 2014, and since that moment all the experts expect the falling of prices. According to the new research of the S&P rating agency, the apartments cost in Dubai have all the chances to fall within the 20% this year.

But mo matter what experts say — Dubai commercial real estate market doesn’t look like falling. It still demonstrates convinient stability. Offices, warehouses, stores, shopping malls, medical buildings — that’s what gets investors’ bets of the present day.

Those who invested in real estate in Dubai now are getting more profit, their transactions are growing for the last year. And a triple net lease transactions (when tenant has to pay for all costs except the rent as well)  showed the promising growth of 8.5-9%, which shows strong market demand with mo signs of stoppage. Customers still prefer office rooms in most established business districts of the city.

Why do you need a consultant?

You need at least a special business permit for some activities in UAE. For example, the school or kindergarten can use only a room that meets all the strict state standards. When you’re obtaining necessary documents and permits, a process can get delayed because of some paper problems, so if you try to do all the paperwork yourself, it can end up in money and time loss — because you miss some possible nuances and can’t take them into account because of it. Do not forget about the finalizing the deal and negotiations with the seller at this stage.  It would be better to entrust this process to the local staff familiar with the specifics of the Dubai market.

It is also well-know issue that developers can unfairly fulfill their obligations: they don’t fit the deadlines, they change room size for own good etc. They can get fine from the government, for state representatives monitor all the construction stages, but you must carefully check the contract before signing anything and pay attention to subtleties and nuances. Those details can clearly define the terms of the agreement. Sometimes you even may get to the court in case of complicated situation, and actually you would need an assistance of lawyer or advisor.

Of course, the profitability of Dubai property investment depends primarily on the correct choice of the property. Consultants from SORP Business Centre are not only an experts in the evaluation of the object, its status and documentation, but also provide professional assistance in preparing all the necessary papers. Specialists from SORP Business Centre may be involved in dealing with complex issues and disputes as a law firm with extensive experience in Dubai real estate, which will protect investments and avoid problems in dealing with unscrupulous customer.

otroReal estate market of the Dubai and UAE. What’s new?