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The UAE real estate market is rife with properties of different types - residential, retail, industrial, commercial, drawing interest from investors from all parts of the globe and making the country, especially Dubai, a top global investment destination.
With the sheer volume of available properties in the market, it is, therefore, critical for every investor planning on purchasing or leasing a commercial property to conduct due diligence, which includes having the entire property inspected by a professional to safeguard business interests, reduce investment risks, and provide the investor with peace of mind and money savings.
We have talked to Douglas Ralph of Snag & Inspect and he explained why it makes perfect sense to set aside a certain budget to have a commercial property's features, layouts and structure properly inspected before signing on the dotted line.
Importance of property inspection
It is ideal that all properties should undergo a thorough inspection to ensure maximum value for money and the overall safety of a property.
An independent inspection conducted by a professional inspection company with highly specialized technology allows an investor to have a better understanding of the condition and the quality of the property that she or he is going to purchase, which, in turn, provides the investor the capability to project future maintenance and repair costs.
The investor may not only verify the existing condition of the property, but also has the upper hand in renegotiating the price down to cover repair and improvement costs. Inspection limits your expenses on costly repairs that may be overlooked by an untrained eye.
It is exceptionally wise to make the small investment in a commercial property inspection as this would guarantee peace of mind and an informed decision on the property value and its future maintenance.
What a commercial property inspection generally entails
An independent and professional inspection provides an accurate assessment of the condition and status of the property.
A comprehensive, thorough and unbiased inspection report presents and enumerates observations in detail to project crucial safety concerns, building code violations, and potential life and safety hazards.
Construction defects such as fire and life safety concerns, code compliance, maintainability and potential threats must be outlined in the report resulting from the inspection.
Likewise, the report should significantly transcend visual assessment with the detection of latent defects.
In addition, the inspection may also highlight the areas that present high potential for financial and energy savings as this would be highly beneficial to the clients, giving her/him a better understanding of future maintenance and repair.
Since our company started five years ago, every single inspection that we have done has highlighted potential fire, life and/or safety concerns while also highlighting cost savings and costly repairs, and our inspection reports could give the client the leverage to demand for rectifying defects and renegotiating the price.
Duration of inspection and costs
The price for a thorough inspection depends on the size and complexity of the property. It could vary from Dh5,000 for a small showroom to Dh100,000 and more for a high-rise commercial building.
These prices are very reasonable because inspection costs are only a very small fraction compared to the total property value and the savings from knowing what defects the property has.
Clients are able to save a lot of money in the long run and have peace of mind. At the end of the day, it is all about minimizing expenses and maximizing savings. The standard release of the report could be from three to seven days; in specialized cases, it could vary in the same way with the costs.
Benefits of having a property inspection (by Snag & Inspect)
• It can prevent you from buying the wrong property, or encourage you to buy the right property.
• It establishes the actual condition of the property, rather than the details provided by the vendor or agent, which protects your investment.
• It provides a base document for insurance purposes.
• It enables you to generate a to-do list from a position of knowledge.
Click on Snagging and read more on its importance before property handover
Source: Ellen Joyce Soriano, Special to Freehold