More than any city in the world, Dubai accommodates corporate hubs with a vision that has both leadership qualities as well as the best infrastructure. Dubai’s environment is one of the few that expat friendly, no tax and negligible import duties.
Dubai has become the hub of tourists as well as investors,
and it has transformed itself in the most successful cities of the world in as
little as 40 years.
Nothing is more profitable than commercial real estate in Dubai. Big businesses like to settle their HQs in Dubai because it’s a great
place to both live and work. Dubai offers the world to its investors as well as
its residents. The culture of Dubai is pretty diverse, with 200 and more
nationalities living and working in Dubai; it’s a brilliant multicultural
environment. Out of the 500 fortune companies around the world, Dubai holds
138, which is the highest number for any city. All of these 138 companies have
their HQ in Dubai.
According to the Dubai Chamber Analysis, the retail region
will expand 4.9% CAGR, which accumulates to $71 billion. All this by 2021,
isn’t that the best news for investors?
What is Commercial real estate?
Every company needs a place to conduct its business, they
need to cater to their customer’s needs, and commercial real estate provides
companies with a location to do so in style. Leasing, as well as buying, helps
companies to stay cost-effective. The commercial doesn’t only mean offices; it
also means all business places such as restaurants, clinics, factories as well
as retail spaces. But that’s not all, commercial properties also include,
hotels, community centers as well as shopping malls and industrial areas. Any
mid to high-level investor will know the value of these any day.
How big is the demand for office sites?
Most areas that are both luxurious as well as affordable are
Business Bay, Dubai Marina, Barsha Heights, Al Quoz, and skyscrapers on Sheikh
Zayed Road, are the ones that attract most business people.
What is Retail?
Other than companies, the retail sector is quite huge as
well. Dubai is one of the top most cities that rank high in the retail sector.
It has successfully located itself as the retail center. It is home to the
state of the art shopping malls, traditional squares as well as the world
famous shopping festivals that happen every year brings in more tourists as
well as investors than ever. Food, entertainment and shopping, all at the same
time are what these festivals are all about.
Dubai is one of the most versatile cities in the world;
there may be some retailers that may be suffering, but then there are those who
are blissfully unaware of the misfortunes are who are expanding every day.
Industrial Sector:
As we have mentioned before, the commercial isn’t only
offices, but also includes industrial properties. Dubai is a city where
developments never stop. With its Emaar tower, theme parks, Dubai Eye, Palm
Jumeirah, to accommodate all the labor and industrial equipment there is a need
for warehouses, factories as well as labor camps. There is a huge demand for
Industrial space. With e-commerce accelerating day by day there is a huge need
and demand for a number of warehouses.
The VAT on commercial properties
Value Added Tax – VAT, implemented in January 1st 2018, is
applicable to commercial properties. 5% VAT is to be paid to the owner will be
responsible for doing so and not the tenant.
