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What do you think about the commercial real estate market in Dubai?
Dubai is one of the few cities where prices in the commercial real estate sector are extremely competitive. An increasing number of multinational companies are setting up offices in the emirate due to the attractive incentives such as less start-up costs, systematic start-up procedures and no taxes. Because of this, job opportunities are created, with more people expatriating here, thus causing a demand in the residential sector. Hence, the commercial real estate market is still growing at this stage; it would be the right time to seriously invest in this sector. We are seeing some attractive deals in the commercial arena, and some are priced well below the market. Overall, it has a great future as the supply is going to be consumed gradually with the shift of corporates into the region and as the Expo 2020 approaches.
Where can a property investor benefit from a better return on investment (ROI), residential or commercial property?
Both the sectors can attract good return on investment (ROI) depending on the location and type of asset. As the population of Dubai continues to grow, there is naturally a demand in the residential sector.
Relatively, the commercial arena also attracts decent demand. There appears to be an oversupply in the commercial sector in some locations, so one can perhaps take advantage of this as there are several options available.
Our advice is to seek opportunities in both sectors as assets are often available at close to double-digit returns.
The way to achieve this is to have a professional company demonstrate these assets. We have professionals who can identify some of the best-yielding assets and discuss these with our investors on a regular basis.
What do you think about investing in Business Bay?
Location is one of the most important factors when considering an investment, and Business Bay ticks several boxes. Being located centrally, the area offers both residential and commercial opportunities, and hospitality continues to boom with some well-known hotels such as JW Marriott Marquis, The Oberoi and Sofitel. The population of Business Bay continues to grow, and the activity of new projects is fierce. It offers fantastic levels of both accommodation and offices. Being close to Downtown Dubai, one can still benefit from the immaculate views. Plenty of dining establishments exist in Business Bay, giving residents and business people a variety of food choices. Business Bay offers competitive prices compared to Downtown Dubai. We feel prices are stable and fair, and the opportunities to invest are many. These factors are some of the reasons why Business Bay is a key area to invest.
My landlord evicted me out of his property six months back saying he wanted to move into the property. I have noticed another tenant staying in the same property, perhaps at a higher rent. What can I do?
If the rental dispute committee decided for the landlord to recover the property from you for his own use, or for use by his first-degree next of kin pursuant to the provision of Paragraph (c) of Clause (2) of Article (25) of Law No. (33) of 2008 Amending Law No. (26) of 2007, then the landlord cannot rent out the property to others for at least a period of two years for residential properties and three years for non-residential properties from the date of recovery of the property from you.
This rule must be followed unless the committee had decided a lesser period for reasons considered by it.
If not, then you shall have the right to request the committee to award fair compensation to you.
Question of the Week
Do you think that the market today is a buyer’s market?
The market seems to be stabilizing. A pattern is being formed and like any market around the world, there will, of course, be cycles.
Developments are aggressive and there is not an abundance of “less than market” or so-called “distressed sales” in the marketplace.
What you will see are pockets of opportunities whereby cash investors can certainly take advantage of great buys.
What one may observe is that some investors wait and take more time in this market in anticipation of price movements.
However, the majority of investors add more assets into their portfolios in a market where prices are stable as there is a sense of security in knowing that there is fair value in the market.
The activity may be slightly slower due to the irony of a buyer’s market wherein people obtaining good deals continue to wait for better deals.
There are currently several “sweet deals” in the market and we encourage both end-users and investors to not miss out on opportunities.
As with any mature market, one can be very sure that prices will, indeed, continue to rise over time.
So, in our opinion and from what we are seeing, this is most certainly a buyer’s market.
Send in your property issue-related questions to be answered by industry experts, mentioning ‘Ask the Agent’ in the subject line, to: email@example.com
Source: Chetan Shroff, Special to Freehold
The writer is a Sales & Leasing Consultant - Candour Real Estate.