- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
Historically, Dubai has expanded along both banks of the Creek. Deira is on the south of the northern side of the Creek and is famed as being the wholesale hub; whereas Bur Dubai, situated on the south, is known to be the retail nucleus.
In sharp contrast to the tall skyscrapers of New Dubai, Bur Dubai has preserved several intriguing historical actions, rustic souqs and a wide array of retail outlets. It is no surprise that good connectivity, central location and more affordable prices make Bur Dubai a chosen destination for tourists and business travelers alike.
Given the lack of space for newer construction, one of the cash cows for commercial investors in the area remains hotels and hotel apartments in the secondary property market. The range of offerings is quite diverse – from older budget inns to newer four-star hotels. There are several inputs you should consider while choosing to buy or rent such property. At the outset, you would need to check the land title deed and the DTCM rating. Once done, other factors to be considered are:
• Current degree of maintenance of property or one that you will have to invest in considerably revamping. Refurbishing a commercial building can be an expensive exercise as you need to factor in the costs of air conditioning and other refits into your budget.
• Total number of rooms and shops available in the property. Is the property furnished or unfurnished?
• Parking spaces as inadequate parking can limit your potential goals.
• Ancillaries such as swimming pool, restaurants, gyms, treatment rooms (steam, sauna).
The current market rate for such properties in Bur Dubai is about Dh1,500 per sq.ft., but this can be negotiated based on the factors listed above. You may also consider buying/building more square footage than you need now as you can always grow your business.
• Check the title deed and DTCM rating of the property you want
• The presence or absence of parking spaces is a key consideration
• Consider buying more footage to provide for future expansion
Source: Dipshikha Mitra, Special to Properties, gulfnews.com
The writer is a freelancer