One of the first things that you should do as either a prospective business owner or a landlord for a prospective business owner is to scout the location if you are planning to buy a shop in Dubai. This includes knowing the potential customer base, knowing how much you should expect to pay to buy a shop, and how much you should expect to pay in rent.
A miscalculation on your end can be disastrous. This is especially true if you misread the demographics of your area. A residential services shop in a business tower, for example, can be disastrous to the money you make. A miscalculation on the cost of the property could lead to a landlord taking a loss in his portfolio, while a miscalculation on profit margins could lead the business owner to going out of business.
Dubai is no different. Dubai has many different towers. It is necessary to not only know the type of tower your business will be in, be it residential or commercial, but it is also important to know the local demographics of the area and set prices that are reasonable for those living there as a business owner; as a landlord, it is important to buy a property that will receive customers, or it will be a waste of money.
If you are planning to buy a shop in Dubai, here are few towers and neighborhoods that might be good places for you to expand or start your business or real estate portfolio.
Downtown Jebel Ali
Downtown Jebel Ali has two shops for sale that are located on the ground floor of a residential tower. The location is within driving distance of Abu Dhabi as well as within Dubai. The design is a shell and core shop, meaning the interior is empty, while the exterior gives the business its shape. The shops here are located near main highways as well.
Tenants who rent the hops in Downtown Jebel Ali will receive reserved parking and central air. The properties here are under a “distress sale,” meaning the prices are reduces. Real estate brokers offer flexible payment plans for landlords and business owners. Additionally, the properties are in pristine condition, having never been rented.
A shop for sale in Downtown Jebel Ali will cost between AED 380,000 and AED 1,050,000, while those who rent it should expect to pay between AED 210,000 and AED 364,861 annually. These properties will make a return on investment from rent alone in the short-term, between 2 and 5 years to be more exact.
Downtown Dubai
Downtown Dubai is the home of the Burj Khalifa, the world’s largest residential tower. The one shop for sale here is near a bank with an ATM, restaurants, a shopping mall, and shops. The areas is also served by public transportation.
Those who set up shop in this location will have access to a business center. They will also have reserved parking. Finally, the shop has central air.
There is only one shop for sale in Downtown Dubai. It is a branded children’s playgroup, which offers a variety of adult and child classes as well as balls and birthday parties. It is already a profitable business and has three branches throughout Downtown Dubai.
The one shop for sale in Downtown Dubai currently sells for AED 2,950,000. Those that rent the shop can expect to pay between AED 369,545 and AED 375,000. This makes the property a shorter-term investment because it will take under ten years for the property to make a profit on rent alone.
Al Quoz
The residential neighborhood of Al Quoz is near Business Bay and Sheikh Zayed Road. There is currently only one shop for sale in Al Quoz, which is a fully equipped pizza delivery kitchen with functioning and installed appliances.
The pizza deliver kitchen will cost AED 80,000, and a trade license will cost AED 12,000, should you wish to own and run the business along with the property. There are no other shops for rent in Al Quoz, but comparing it to a similar neighborhood, Bur Dubai, rent is expected to be between AED 50,000 and AED 130,000. This makes it a short time, 1 or 2 years, before you start making a profit on rent alone.
Conclusion
Downtown Jebel Ali, Downtown Dubai, and Al Quoz are all residential areas. You can make the quickest profit by leasing the pizza kitchen in Al Quoz, and Downtown Dubai’s children’s playgroup will take the longest. However, all properties here will turn a profit on rent alone in under a decade.
If you want to buy a shop in Dubai and get a quick return on investment, now’s the time to get a shop in Downtown Jebel Ali, Downtown Dubai, or Al Quoz!
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