Commercial Real Estate - Basics
Regulations and statutes can be difficult to fathom, especially when you may not have an appetite for it; the scenario with commercial real estate is no different. Laws at several levels - federal, state, and local - in addition to intricacies like insurance, agreements, and even contract law could be overwhelming at times. Finding a single source of information, in this case, means seeking professional help, which is advisable when there is a sizable investment at stake. Through this article, we look to educate you on a few statutory aspects wherein commercial real estate is concerned. The Emirati commercial real estate law does not assign a lease as interest on the land, instead observes it as a right for an individual. If you feel compliant to make a long-term contract, you can sublet commercial real estate properties in the designated investment areas of Dubai and Abu Dhabi. With an emphasis on Dubai, a long-term lease is a minimum of ten years, and any lease under ten years has to be registered using the Ejari system. Wherein the standard tenancy agreement in Dubai is concerned, it has to be drafted for a minimum of 12 months; this agreement can be extended automatically if the tenant and landlord agree to an extension. One must pay attention to shell/core and fitted commercial real estate properties, carefully looking at the fine print. Commercial properties are usually classified as core or shell unit, which means renting a space without any finishings or fixtures. However, presently, there is an increased supply of fully-equipped commercial spaces in the commercial real estate market, considering its competitive nature. If you are evaluating renting a space, you must review the work that will be put in while furnishing that space. Additionally, if renovations are to be made to the interior of a commercial property in Dubai, you will need a permit. Moreover, if you want to make any structural modifications, you will need to obtain a Non-Objection Certificate from all relevant stakeholders, including your landlord, Dubai Municipality, building manager and if in a Free Zone, the relevant authorities. Once you have zeroed in on an ideal commercial real estate property, you must be aware that you will only receive your Ejari Certificate when you get the provisional trade licence on the establishment of your company. The trade licence can be obtained from any of Dubai’s Free Zones, or the Mainland if you choose to build your business there while adhering to the ownership stake obligations. Any interested party must always consult qualified commercial real estate agents/companies, post which they can make informed decisions. If you have questions about laws that govern property ownership, sale, and usage, tenancy, etc. reach out to JNM Specialists - The sole trusted commercial real estate agents Dubai has! If you are willing to undergo the process of choosing a property, our team is proficient in assisting you through tax registrations and the consequent declarations for precise compliance with your commercial real estate rental or purchase. JNM Specialists - a commercial real estate company with guaranteed expertise, experience, and excellent service. Reach us at https://jnmspecialists.com/ today! JNM Specialists partners with DMCC for brokerage in JLT. Stay tuned.