Now Is The Time To Invest in Dubai Commercial Property

The real estate analysts in Dubai have studied and according to that they reached a conclusion that people those who are interested in buying some commercial property in Dubai, can do it now as they can earn a return of 8 percent by investing in the commercial properties in the emirate now. Although, there has been an increasing number of a property becoming vacant, still the commercial property is on the rise these days in the emirate. Moreover, this process has resulted in rental rates dip of commercial properties.

Porush Jhunjhunwala, leads commercial sales and leasing at Better Homes said: “In the short-term, there may be a negative impact on general rental rates because of the number of empty offices and future oversupply. However, we do not expect this to affect the return on the assets we're selling as the rentals are locked in for the contract period of three to five years.” He also mentioned that as compared to the residential properties, higher returns can be earned from these properties.

He further added: “Now is the time to pick up a great commercial property in a strategic location at the best price, and with a possible long-term tenant.” According to him guaranteed returns can be enjoyed on the investment made on tenanted commercial property with yields up to 8 percent ROI. Jhunjhunwala said: “We have income generating assets mainly in JLT, Downtown and DIFC. In JLT we have assets for Dh800 per square foot which are producing income of eight to 8.5 per cent per annum.”

Research lead at Jones Lang LaSalle, Craig Plumb said: “Rental values are still declining in the office market in most areas of Dubai, but this does not mean to say there are no good deals to be had, as there remains selective demand from occupiers who are seeking to benefit from the more competitive market conditions.”