Commercial property buying guide

buying guideImage Credit: Supplied

The UAE real estate market changes very fast. When buying a commercial property, it is important for you to look for one that offers maximum returns and possible growth in capital value. Here are some guidelines that will make the purchase a seamless affair:

•Plan ahead – Make a draft of the type, strategy, customers and location of your business. Never ever compromise on your primary requirements, so choose a property that satisfies all those.

•Do market research – Due diligence helps you understand the market value of a property. Check the surrounding markets for a secure investment. For this, seek the help of a reputed real estate service provider.

•Determine the purpose – If you need a space for official purposes, check the most in-demand properties in a specific area. Buy more square footage than what you need. This will help you expand in the future.

•Check for parking space – A location’s parking facility can directly affect one’s business. Most of the commercial buildings in the UAE offer ample parking areas, but some only offer shared space.

•Prepare the necessary documents – Companies are required to submit a certificate of incorporation, memorandum and articles of association, board resolution, signed authority letter and the passport copy of the signatory. For an overseas firm, all the said documents, along with copies of passports, need to be attested by the UAE embassy.

•Set a budget – Plan your finances carefully. Include the maintenance costs of the air conditioning, lighting and security systems, and utilities.

•Ownership – A purchase agreement is signed and an initial deposit is given to the owner to secure the property. You have to pay for the ownership transfer. Fee varies from one developer to another.

It would be wise to hire the services of an accountant, a commercial realtor, a lawyer and a mortgage broker before investing for guidance.

Handy Hints
• Plan well ahead and conduct a market study before investing
• Identify the purpose of the space and check its basic amenities
• Seek advice from real estate brokers, lawyers and accountants

Source: Asha Das, Special to Properties
The writer is a freelancer


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