Whether you're upsizing, downsizing, or migrating to the UAE, finding the right commercial real estate is an essential step in starting or growing your business. The UAE has a thriving commercial real estate market, with a wide range of properties available to suit all budgets and needs. In this article we want to give a general overview of how commercial real estate works in the UAE, along with some topics and questions that may make you think about your decision a little more....and hopefully make the right choices!
How is commercial real estate marketed in the UAE?
Commercial real estate in the UAE is marketed through a variety of channels, including:
Online listings: There are a number of online real estate portals in the UAE, such as Dubizzle, Property Finder, and Bayut. These portals list a wide range of commercial properties, including offices, warehouses, retail spaces, and industrial units.
Real estate agents: Real estate agents can help you find the right commercial property for your business, based on your specific needs and budget. They can also negotiate on your behalf to get you the best possible deal.
Direct marketing: Some commercial property owners also market their properties directly to businesses, through email marketing, social media, and other channels.
How to find the right commercial real estate for your business in the UAE
Here are some tips for finding the right commercial real estate for your business in the UAE:
Start by defining your needs. What type of commercial property do you need? What size space do you require? What is your budget?
Do your research. Once you know what you're looking for, start researching different commercial properties and areas. Read online listings, talk to real estate agents, and visit properties in person.
Consider your business needs. When choosing a commercial property, it's important to consider your business needs. For example, if you need a lot of storage space, you'll need to look for a property with a warehouse or storage unit.
Be prepared to negotiate. Once you've found a commercial property that you're interested in, be prepared to negotiate with the landlord. This is especially important if you're renting a property.
Should You Be Renting or Buying Your Business Premises
Whether you should rent or buy commercial premises in the UAE depends on a number of factors, including your business goals, budget, and risk tolerance. If you are in the fortunate position of having the option of buy property for your business, then you may be able to look at this as another investment, in general the real estate market in the UAE (commercial and residential) is known for being a great asset for investors. However even if you can it's not always the best option for your business, depending on your goals and situation, see below for some pros and cons.
Benefits of renting commercial premises in the UAE
Lower initial investment: Renting commercial premises requires a lower initial investment than buying. This is because you only need to pay a security deposit and rent, rather than the full purchase price of the property.
Flexibility: Renting commercial premises gives you more flexibility than buying. For example, you can easily relocate to a larger or smaller space, depending on your business needs.
Less maintenance and repair costs: As a tenant, you are not responsible for the maintenance and repair costs of the property. This is the responsibility of the landlord.
Benefits of buying commercial premises in the UAE
Equity: When you buy commercial premises, you are building equity in the property. This means that the value of the property may increase over time.
Rental income: If you buy commercial premises and rent it out to other businesses, you can generate a rental income. This can be a good way to offset the cost of the mortgage and other expenses.
Capital appreciation: The value of commercial premises in the UAE has been appreciating steadily over the past few years. This means that if you buy commercial premises now, you could potentially sell it for a profit in the future.
Factors to consider when deciding whether to rent or buy commercial premises in the UAE
Business goals: What are your business goals for the next few years? If you are planning to expand rapidly, you may want to rent commercial premises so that you have the flexibility to relocate to a larger space. However, if you are planning to stay in the same location for the long term, you may want to consider buying commercial premises.
Budget: How much money can you afford to invest in commercial premises? Renting commercial premises is typically more affordable than buying, but you will need to factor in the cost of rent over the long term.
Risk tolerance: Buying commercial premises is a more risky investment than renting. This is because the value of the property could decrease over time. If you are not comfortable with this risk, you may want to consider renting commercial premises.
Ultimately, the decision of whether to rent or buy commercial premises in the UAE is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances. At Prism 7 we deal with real estate investment as well as commercial real estate for businesses, so if you are unsure our team may be able to help you consider the options with the benefit of our experience and insight.
Where's The Cheapest Place For Business Premises in the UAE
Assuming you want to rent space for your business, we can checkout some of the average cost to rent space in a few different areas in the UAE. This will give you a rough idea of the differing costs between some areas in the UAE. However you should also remember to take into account that there may be unique benefits to locating your business in certain areas, this will depend on your business type, but a business serving customers or clients face-to-face may find that there is far higher foot traffic if based in Dubai for example.
Area
Average cost of business premises per square meter per year (AED)
Dubai
AED 1,500 - AED 3,500
Abu Dhabi
AED 1,000 - AED 2,500
Sharjah
AED 700 - AED 1,500
Ajman
AED 600 - AED 1,200
Ras Al Khaimah
AED 500 - AED 1,000
Please note that these are just averages, and the actual cost of business premises can vary depending on a number of factors, such as the type of property, the size of the space, and the location. It is also important to note as above that the prices listed are for rental properties. If you are considering buying business premises in the UAE, the cost will be significantly higher.
We went over some of the areas in the UAE in more detail in our last article, so you are welcome to read that if you want some more general information about the various areas available in the UAE - The Best Areas to Live in the UAE. If you need more specific information on the cost of business premises in a particular area or type of property, please contact Prism 7 Real Estate. We would be happy to help you find the right property for your business needs and budget.
Additional tips for business owners who are migrating to the UAE:
Start your search early. The commercial real estate market in the UAE can be competitive, so it's important to start your search early. This will give you more time to find the right property and negotiate the best possible deal.
Work with a reputable real estate agent. A reputable real estate agent can help you navigate the commercial real estate market in the UAE and find the right property for your needs. They can also help you with the legal aspects of renting or buying a commercial property.
Be prepared to provide documentation. When renting or buying a commercial property in the UAE, you will need to provide certain documentation, such as your business license and bank statements.
How Prism 7 Real Estate can help you find commercial real estate in the UAE
Prism 7 Real Estate is a leading commercial real estate agency in the UAE. We specialise in helping businesses find the right commercial property for their needs. We have a wide range of commercial properties available, including offices, warehouses, retail spaces, and industrial units.
Our experienced team of real estate experts can help you with every step of the commercial real estate search process. We can help you define your needs, find suitable properties, and negotiate on your behalf to get you the best possible deal.
Contact Prism 7 Real Estate today to learn more about our services and how we can help you find the right commercial real estate for your business in the UAE.
