Business Bay Good Investment Or Not

Discussion in 'Dubai property' started by centurygrove, Dec 11, 2007.

  1. centurygrove

    centurygrove New Member

    I am looking to buy in the business bay but am not sure. on a recent trip i saw adverts for office space for 1000 aed/sq ft up to 2200 aed sq/ft. How can the difference be so much. Would you consider commercial office space a good investment and what kind of rent do you thick is achievable in early 2009 when some of these projects will be completed.
     
  2. Arfie

    Arfie New Member

    Business Bay is going to be the financial hub of not just Dubai but the Middle East. Its a great investment and rental returns here will be great.
     
  3. mpat

    mpat New Member

    For office space, its the best, today's newspapers said that rents for offices in UAE and qatar is going to increase by 20 % in 08.So sooner completing the better,since the ratio of supply and demand is high now.
     
  4. centurygrove

    centurygrove New Member

    what kind of returns do you think will be achievable in early 2009 from business bay ? i was told rents will vary from 300-400 aed per square foot ? would anyone recommend whether to buy 1000 square feet of space or go for something slightly bigger
     
  5. mpat

    mpat New Member

    bigger the better,but rents might not go that far in 09.But it will be one of the best locations for corporate offices ,think about a multinational bank or industry renting your office so how big would they prefer ?
     
  6. Rammah

    Rammah Member

    For argument sake, If my entire fortune was a billion pound, I wouldn't hesitate in putting 900M in Business Bay as an area. [90% of my entire capital shows how much faith I have in it, and how much I beleive it to be an extremely LOW risk investment, and the best in the world today!]

    I'll probably spread it between several developers, and will only use the largest names to avoid surprises from new-comer and smallish developing firms.

    Rentals will keep increasing for few years, and I expect the government to end up having to put a cap towards the increase per annum similarly to what was done for the residential properties after the huge rental increase in 2003/2004. In 2005, the Gov capped the increase by 15% per annum, and then in 2006 it lowered the cap to 7% every 2 years! But that's to stabilize the market which was going out of control with those increases, and making Dubai harder to live in if it was to keep soaring at that rate!

    I am employed by DAMAC Properties, and work in their Mayfair office. Feel free to pm me if you wish to hear about our availabilities there, and I'll be happy to go into more details if you wish to. We can arrange to speak over the phone for a start, and I can also go through a powerpoint presentation that I have designed specifically for commercial investments in Dubai! [it includes facts and figures of capital growth there for the past years, and the projections for the future will be left for the investor to imagine once enforced with the full pack of information that we can provide]

    Regards,


    Rammah
     
  7. aaron.cook

    aaron.cook New Member

    Go for an office, they will be in incredible demand when completed. I have personally recieved many enquiries from individuals wishing to rent office space. Business Bay will be THE place to be for any company, and they shall be willing to pay a premium rental to be there. If you wish to sell it on, on completion then it will give equally great returns.
     
  8. Ginger

    Ginger New Member

    Its crazy! It's a pure advertising here in Dubai Forum in all the topics!

    DAMAC is the worst developer in Dubai by far, just ask people who bought from there!

    Why there are so many agents from DAMAC on this forum? Check out all the threads - they are everywhere! My GOD! Stop selling, people want proper advices!
     
  9. Rammah

    Rammah Member

    Did you buy from DAMAC? If so, please elaborate on your experience instead of throwing general statements.

    We can only sell if there are people looking to buy.

    Ask, call or visit us personally for advice. We do give plenty of time for people only looking for advice.
    If you're in the UK, I would like to take this opportunity invite you to visit me in London Mayfair branch on Thursday 27th. It's clear you won't buy from DAMAC, but I'm happy to spend time giving you my opinion on any Q you may have.

    Thanks
    Rammah
     
  10. mpat

    mpat New Member

    Ginger is right actually.This forum should not become an agent owned / backed / run platform,rather a genuine helping and advicing forum.I thought administrators wont allow putting ads like DAMAC guys are putting.Really Administrators should do something to maintain the prestige that forum had before for those people who are new and unaware of agent tactics to guide and teach them selflessly.Now it looks like we are watching DAMAC website.
     
  11. alice_chained

    alice_chained New Member

    Business bay is a fantastic right next to the Burj Dubai development which will be the financial hub of the Middle East, it is a fantastic investment.

    Amin,
    Business Development Manager (Mortgage)
    Barclays Bank
     
  12. Roshan

    Roshan New Member

    You will not get anything in Business bay for 1000 dhs psf. The current prices are between 1900 to 2300 dhs psf. The current rentals are at 250 dhs psf if not more in some areas.

    Watch out for gross and nett area. When you see abnormal prices than the prevailing rates, it could be gross area.

    Markets are getting hot and will have to correct sometime. Can't expect the prices to go up forever. As long as the supply and demand curves don't intersect thing should be OK. As a investor you should be prepared for corrections.

    A 1000 sq ft office is considered good and which would seat around 11 people ( @ the rate of 100 sq per person )

    Commercials tend to give a better return both on ROI and rentals. I myself have invested in 2 commpercial properties and they have done well so far. If I was given the choice, I would go for commercial.

    As the saying goes "warehouses do not weep". You will not have tenants calling and complaining of a leaking faucets or broken pipes.

    Good luck
     
  13. Rammah

    Rammah Member

    Just to rectify the figures a bit, there are commercial units selling at very close to 3000 per sqft.
    As for rental, we're in touch with a company achieving between 350 and 400 per sqft for them.

    Regards,


    Rammah
     
  14. Roshan

    Roshan New Member

    Rammah,

    The figures quoted by me could be pessimistic values. Dubai at the moment is starving for office space and since the supply & demand curves have not intersected as yet you are looking at figures of 350 to 400 dhs psf.

    Sometime, somewhere tha markets have to cool and mature. Dubai markets should not crash but will definitely correct. But when all the commercials come into the market, supply might exceed demand at which time rentals start coming down.

    Investors just can't go as per the current rentals. They will have to take into account the correction in rentals when all the commercial bldgs come into the market.

    OPUS from omniyat is selling between 2500 to 3000 dhs psf. Deeyar is not too far away with 2200 to 2400 dhs psf. The question is for how long with this go on. If investors buy whatever the developers are dumping in the market, then there could be trouble at the end of the road.

    One needs to do their homework before investing. The best is to put all the values onto a mortgage calculator. I have invested in business bay and JLT and even if the markets correct by 50%, I should be able to pay my monthly EMI.

    Regards

    Roshan
     
  15. Rammah

    Rammah Member

    Of course pple should do their homework and due diligence before buying, and should afford whatever they r buying. However, I think that the prices in Dubai are far from their peak. Therefore, prices are still to go up. Compare prices with Singapore, HongKong, Tokyo, London, NY and if Dubai has plans to be the "City of the Future", then prices will reach if not exceed prices of those cities. Why not?

    3000 AED per sqft is only £400 per sqft!

    When things were getting launched last year at 1400AED per sqft, some people thought it's too high, and decided to hold on and how prices will shape up. What happened a year later? we are approaching 3000per sqft.

    I hope we can revise this thread in Jan 09, and we'll be able to see if prices adjusted or just kept increasing. But if you have money to invest now, my advise is not to wait, cuz you'll regret it [IMO].

    Rammah
     
  16. Roshan

    Roshan New Member

    Hope your predictions come true. If they do I can retire earlier.

    Thanks

    Roshan
     
  17. Rammah

    Rammah Member

    I'm confident you will.
     
  18. Raheel

    Raheel New Member

    Dubai - Business Bay

    So are you thinking of buying some investment property in Dubai?. If you know anything about current real estate trends you have probably heard that buying a Dubai investment property would be a great idea. Even if you are not quite sure where Dubai is a Dubai investment property can be a wonderful way to build equity in something that can be a long or short term investment. Many people are looking at investment property in Dubai instead of Western property investments because the real estate boom in Dubai just seems to keep going and going. And, unlike Western real estate investments a Dubai investment property isn’t likely to lose value when the boom is over. A investment property in Dubai is a great idea because chances are it is relatively new, looks good, will appeal to renters, and will require very little upkeep. This is the type of property that every investor would love to have, and with a Dubai investment property it can all become a reality.

    If you aren’t all that familiar with Dubai but you would like to take a look at a Dubai investment property in hopes to buy you might want to look offshore. Some of the most in demand Dubai investment property options are located off shore on either Palm Island or The World. Both of these offshore Dubai investment property options will offer you a lot in terms of beauty, quality structures, and massive returns in the future. Are you thinking of taking a trip to view some of the property in Dubai? If you are at all interested in real estate you have probably been toying with the idea of purchasing property in Dubai since 2004 when the real estate boom began. Dubai Property doesn’t seem to have a cap on how valuable it can become as the boom is still going strong two years after it began. A lot of the reason that the property market in the country continues to grow in volume and in value is because the government is interested in growing the real estate value of the area. Dubai is one of seven emirates that make up what most of us know as the Persian Gulf, yet Dubai only produces about 6% of the oil from the area. What this means is that property in Dubai is what will attract investors and tourists to the area, not oil, as is the case in some of the other 6 emirates.

    Property in Dubai comes in many forms. If you are looking to buy a Dubai property to live in or to rent to others you will find that you can buy several different types of homes. The most common is ultra contemporary with apartments and lofts found in immense skyscrapers that are no stranger to property in Dubai. Much of the property in Dubai is located in skyscrapers because they are numerous and provide a very efficient way to get the most property in a very small land area. Lucky for those that are looking for property in Dubai these skyscrapers are as beautiful as they are numerous.

    If you are looking for really unique and beautiful properties in Dubai you may want to look at some of the offshore property. The offshore property in Dubai can be found on Palm Island or The World. Both of these offshore resources for property in Dubai are very in demand so if you see something for sale or rent and you are interested you need to make your move quickly. Property in Dubai doesn’t stay on the market long because there are investors from all over the world that would like to cash in.

    If you are looking for less extreme property you can look onshore in the Dubai Marina area, which provides beautiful homes with views of the water. You can also look for lovely property in the Brarj Dubai Complex, the Dubai Waterfront, Business Bay, as well as Dubailand. You’ll find that the property in Dubai varies from location to location. You can shop for villas, town homes, apartments, single family homes, high rise apartments, and more. Dubai Property is very valuable so it’s important to always move in fast if you are truly interested in any type of property that you see.

    As property in Dubai continues to be built and planned you will find that you can not only buy single family homes and apartments you can also buy business property there. Take just one trip to the area and you will find that real estate is a large part of what Dubai is. Get in on the value and excitement around property in Dubai and buy the home or business space of your dreams.you will find many different types of structures to invest in, even homes that you can rent out to those that vacation to the area.

    If you would like to buy a business oriented Dubai investment property you should definitely look in Business Bay. Business Bay is a wonderful area to look for a investment property in Dubai because there are many business owners that would love to have their business in the area but cannot afford to buy. Because the area is very popular you could buy a investment property in the area with almost a guarantee that you will have a renter in the location for as long as you own the property. Chances are you may get someone to offer to buy you out somewhere along the way, at which point you can decide whether you would like to keep this particular Dubai Investment property or move onto something bigger and better.
     
    Last edited by a moderator: Jan 6, 2008
  19. lyes

    lyes New Member

    hi, you should invest in Business Bay, the price are now more than that and the difference is because of the location in the area,
    you should also think about DIFC and Tecom, free zone area so no need for a local sponsor to stand up a business,
     
  20. Rammah

    Rammah Member

    Freezone isn't only about not needing a local sponsor. Besides the 100% foreign ownership, the main benefits of freezones compared to other parts of Dubai are:

    1- 50 yrs guarantee of no corporate taxation, renewable 15 years at time after the initial 50yrs.
    2- No import duties, compared to a 4% import duties elsewhere.
    3- Fast track business setup. [20 minutes guaranteed].

    Regards,


    Rammah
     
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