When an investor looks to invest in real estate, they are faced with the choices between residential and commercial properties. In general, residential properties are considered to be an optimum alternative for first-time real estate investors, however, commercial properties are considered to be a more suitable option for seasoned investors with a grander budget including portfolio owners, businesses, financial organisations, pension corporations and sovereign wealth funds. Through this article, we will concentrate and elucidate the significance of investing in commercial estates and how to invest in commercial real estate with little money.
In Dubai, keeping in mind the general trend, commercial properties are at a price point and area capacity that only larger corporations customarily consider for acquisition. Having said that, a multitude of opportunities for smaller-scale property investors also persist, which is of particular interest for those looking to balance their residential portfolio with commercial ones. Here is an answer to the frequently asked how to invest in commercial real estate with little money question. Investors on a budget, who are not looking for large-scale commercial real estate acquisition, must evaluate the option of investing in single-unit office suites or smaller retail spaces; this could be the case in several segments including hospitality offerings, retail and warehouse spaces, etc.
Investing in smaller commercial real estate properties presents tangible opportunities for those investors who wish to diversify their portfolio. Commercial real estate sales rates also denote a great value in several locations around Dubai that are considered potential locations for future price growth as the economy flourishes, service segments expand and the employment rates ascend. A smart, long-term investment, the commercial real estate market has shown high demand over the recent years owing to Dubai’s status as an economic and business centre supplemented by its growing ex-pat and foreigner professional communities. Growing business and commercial divisions combined with general economic growth signify that commercial real estate properties are expected to generate substantial returns along with an increase in property value over time.
Additionally, UAE regulations allow a leaseback arrangement on commercial real estates in Dubai, which is a highly lucrative arrangement for both renters and investors. Under this arrangement, the former owner sells an estate and thereafter continues to lease it back from the current owner, which means that the previous owner (present leaser) continues to utilise the estate without the ownership costs, whilst receiving monies funds through the sale. Likewise, the current estate owner has an investment with guaranteed rental revenues from a long-term, permanent tenant. This is why the leaseback commercial investments are a sought-after arrangement for many commercial real estate investors in Dubai.
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