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Investing in Dubai Commercial property

Discussion in 'Dubai property' started by Werhop, Aug 18, 2008.

  1. Werhop

    Werhop New Member

    Hi Guys,

    I am looking at investing in commercial real estate in Dubai, our goal is to acquire the properties and rent these out, we would make use of financing to acquire, and have the tenant's rent go towards the re-payments.

    This idea is very new and we are still researching it. i would like it if you guys could give me ideas as to the options available for purchase? What can one buy, we are looking for smaller retail or office properties, maybe around US$140,000 but not limited to that, we could acquire higher prices if need be.

    Can you please let me know what regions are the most profitable and best for a venture like above? i know all the new developments, like the world, and waterfront are being worked on (how far until we can buy on these projects?) but would these be worthwhile to wait to get some deals done, and where would one find the off-plan deals on these projects?

    thanks
    werhop
     
  2. sameer.dada

    sameer.dada New Member

    Werhop-

    Based on what you want to do and what yoru appx budget is, I would suggest JLT. (Jumeirah Lake Towers).

    You mind find a very small office there for close to USD 170,000.
     
  3. Sharjil Lakdawala

    Sharjil Lakdawala New Member


    Well the budget u quoted is quite less to own a commercial property in dubai but its sufficient for trading in dubai.. u can buy floors or units on a payment plan and trade it at a premium... well we r a syndicate of investors in dubai and thats what we do... cheers
     
  4. Werhop

    Werhop New Member

    Sharjil Lakdawala, we are starting such a group, similar to yours, in our home country, South Africa, I would like to chat to you via email if you would not mind, maybe you can tell me more about the strategy you use, when you say trading, what do you mean, selling before building completion? We were actually looking for a very small retail/office inside a building, i know it is very low what i said, but i am interested in your comment... please explain more, you can email me at werhop@gmail.com.

    thanks
     
  5. Sharjil Lakdawala

    Sharjil Lakdawala New Member

    Thankx for ur interest in ma comment mate...u cn call me on 00971-554118786 coz its kinda difficult to explain over email.. u can call me anytime and i will let u knw the strategies we use.. cheers
     
  6. Werhop

    Werhop New Member

    Sharjil, thanks for the number, do you have skype? maybe we could chat, that is quite helpful...
     
  7. Sharjil Lakdawala

    Sharjil Lakdawala New Member

    well i do have skype but i m not quite accustomed to it.. well if calling is a problem then u can definetely add me on yahoo messenger... sharjil_192003@yahoo.com
     
  8. Werhop

    Werhop New Member

    Just installed Yahoo messenger... sent you a friend request...
     
  9. Roshan

    Roshan New Member

    JLT will be the next free zone to come in to the market. You should be able to get deals at around Dhs 1600 psf.

    Business Bay is considered long term investment. Prices hover around Dhs 3000 on launch, can get deals in the range of Dhs 1800 psf. Business Bay is considered to be the business hub of Dubai.

    My suggestion would be to buy something which is close to completion in JLT and give it on rent to get instant returns on investment.

    On waterfront, maritime city the prices are very high and will take sometime to come into the market.

    Better to buy something which is ready and give it out on rent.

    Good luck.

    Rgds

    Roshan
     
  10. sameer.dada

    sameer.dada New Member

    Roshan,

    In your opinion, which are some good projects and who are the good developers in JLT?
    For things close to completion.

    Also do you think its better to buy commercial or residential in JLT?

    How much do you feel unit would appreciate from being close to completion to when having the key.
     
  11. Roshan

    Roshan New Member

    Mazaya, Al Fajer, Damac, Asam investments, Al Attar, Reef, Saba, ETA are some of the good developers in JLT. Go the JLT site and they will give you all the developers there.

    However I was quite impressed with the MAG tower from outside. Tiffany tower would be an excellent commercial tower when completed. So most of them are out there for the first time but still could deliver good properties.

    My investments are mostly into commercial real estate. I was always a fan of commercial real estate and the rental returns are around 200 to 250 dhs psf while a residential would deliver about Dhs 90 psf rental returns.

    Commercial real estate does not give you tenants who complain all the time. " Warehouses do not weep " is a saying which goes around when describing commercial real estate.

    While selecting commercial property I feel a rectangle or square layout is good. It should have it's own toilet or pantry. Most developers have not included this and suprisingly this becomes a unique selling point.

    I wish I had a cyrstal ball to predict prices but I feel that JLT has hovered around the Dhs 1600 psf for a long time ( wonder why :confused: ) but once complete with the lake ( or stream ) whatever you call it, it could hit Dhs 2500 psf.

    For me anyday commercial is better than residential, by saying this I am not saying that residential is bad, it's just that I prefer commercials to residentials.

    Regards

    Roshan
     
  12. sameer.dada

    sameer.dada New Member

    Thank you for your feedback Roshan. It will be halpful in making my final decision.

    If you hear of any near completion commercial projects in JLT, please do let me know.

    I'll go and check out their web site right now.

    Many thanks,
    Sameer
     
  13. DDS

    DDS New Member

    Better to invest in free zone or non free zone??

    I am also looking to invest in Dubai commercial property and have been trying to decide which area would be the best to invest.

    Regarding JLT- several commercial leasing agents that I have spoken to have all said the same thing: it can be more difficult to find tenants for office space in free zones (such as JLT and Tecom) because the Free Zone Authorities have strict regulations about what type of businesses can set up shop in their specific zone. Office space in non-free zones is easier to rent and may command a higher rent.

    Therefore I am considering Business Bay or Dubailand.

    What is general opinion regarding this issue?

    Is it better to invest in free zone or non free zones???
     
  14. Roshan

    Roshan New Member

    For commercials I would recommend Tiffany tower which should be completed in Dec 2008.

    Pick up something near the Metro station. Guess you already know that, but I thought I would mention it.

    Regards

    Roshan
     
  15. Roshan

    Roshan New Member

    In JLT, besides Almas, Silver and few other towers hich will be exclusive for Dubai metal trading, the rest of the buildings are free to open whatever they want.

    In fact Dynasty Zarooni is located in Saba tower 1. Just have a look at the offices in Saba tower, I am sure there are no restrictions there.

    International companies prefer to have 100% ownership and are very hesitant to get into a 51-49% partnership. A 100% ownership can be got only in free zones.

    Dubai land is not freezone by the way.

    Regards

    Roshan
     
  16. MyDamac

    MyDamac Banned

    some of the direct properties in business bay i have with me are:

    This will give some idea of the rates going on in Business Bay

    EXECUTIVE TOWER F
    2 BR, AREA – 1547 SQ.FT., 18th FLOOR
    CREEK VIEW
    S.P. - AED 3,867,500/- NET TO OWNER



    BURLINGTON TOWER
    OFFICE SPACE,
    AREA – 840 SQ.FT, 8th FLOOR,
    O.P – 1012 / SQ.FT.
    AVENUE VIEW
    S.P. – AED 2250 / SQ.FT.
    PAYMENT PLAN
    35% PAID
    5% ON NOV.2008
    5% AFTER 3 MONTHS
    5% AFTER 3 MONTHS
    50% ON COMPLETION


    CHURCHILL EXECUTIVE TOWER
    OFFICE SPACE
    AREA – 872 SQ.FT
    13th FLOOR
    O.P. – 1189 / SQ.FT.
    VIEW – LANDSCAPE VIEW
    S.P.- AED 2200 / SQ.FT.
    50% PAID
    50% ON COMPLETION


    SAMI TOWER

    3 OFFICE UNITS AVAILABLE ON THE 8th FLOOR
    UNIT 801: 1568 SQ.FT.
    UNIT 802: 1187 SQ.FT
    UNIT 812: 1276 SQ.FT.
    O.P. – AED 848 PER SQ.FT.
    S.P. – AED 1500 PER SQ.FT. NET TO OWNER
    40% PAID


    CITADEL TOWER

    OFFICE UNIT, 11th FLOOR, AREA – 1105 SQ.FT
    S.P. – AED 2950 PER SQ.FT. NET TO OWNER
    LANDSCAPE AND PARTIAL LAKE VIEW
    30% PAID, 70% ON COMPLETION
    EXPECTED COMPLITION SEPTEMBER 2008



    CITADEL TOWER

    OFFICE UNIT, 19h FLOOR, AREA - 1105 SQ.FT
    S.P. – AED 3000 PER SQ.FT. NET TO OWNER
    FULL LAKE VIEW
    30% PAID, 70% ON COMPLETION
    EXPECTED COMPLETION SEPTEMBER 2008


    CHURCHILL RESIDENCY

    3 BR, 54th FLOOR
    AREA – 2801 SQ.FT.
    LANDSCAPE AND GARDEN VIEW
    O.P. – AED 1100/ SQ.FT.
    S.P. – AED 2100/ SQ.FT NET TO OWNER
    50% PAID, 50% ON COMPLETION


    DEEYAAR FARE VIEW RESIDENCY

    2 BR + 2 PARKING
    AREA – 1311 SQ.FT.
    17 Th FLOOR
    S.P. – AED 3,150,000/- NET TO OWNER
    20% PAID
    10% IN NOV.2008


    SOBHA SAPPHIRE

    OFFICE UNIT, 12th FLOOR, AREA – 1268 SQ.FT.
    S.P. – AED 3,000,000/- NET TO OWNER
    20% PAID
    10% ON 2ND SLAB


    IRIS CRYSTAL

    FULL FLOOR 6th FLOOR
    FLOOR 6th IS A FIRST FLOOR AFTER THE CODIUM
    TOTAL AREA – 10,215 SQ.FT.
    O.P. - AED 27,651,900/- + AED 720,000/- ( 12 PARKING ) = TOTAL AED 28,371,900/-
    SELLING @ 12% PREMIUM NET TO OWNER
    10% PAID
    10% IN JAN. 2009



    PRIME TOWER, COMMERCIAL OFFICES

    FULL FLOOR, 25 th FLOOR, 12 OFFICES
    TOTAL AREA – 13343 SQ.FT.
    VIEW FROM ALL FOUR SIDE
    S.P. – 1,825/SQ.FT.
    20% PAID
     
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