RUSTAR Real Estate about commercial real estate in the UAE and business features

Interview with Yuri Krazhan, Sales Manager, RUSTAR Real Estate.

Yuri, what segment of UAE commercial real estate is most in demand among foreign buyers and why? How active are Russian investors regarding UAE commercial real estate?

As you know, Dubai is the economic and business capital of the UAE, and also has a favorable geographical position, which contributes to the development of trade and business. It's no secret that many world-famous companies have established their regional and head offices in Dubai, which led to a shortage of office space. Today, the occupancy of the offices in Dubai is 98%. In this regard, among foreign buyers of real estate in the UAE, office space is most in demand, but there is also a steady demand for retail space. The ratio of investments (investments) in residential and commercial real estate is about 40-60%, that is, Russian citizens invest a little less in commercial than in residential real estate.

What is the attractiveness of UAE commercial real estate for foreign investors?

Dubai, attracting business from different countries, according to the latest statistics, ranks second in the world in the construction of commercial real estate. Being less dependent on the oil industry, Dubai needs more and more offices and retail space. So, at the moment, more than 2 million square feet of commercial real estate is under construction in Dubai alone.

For comparison, Tokyo is at 9th place, and Hong Kong is at 12th place in the leaderboard for commercial real estate construction, while Paris, the only European city among the ten world leaders in this area, is building about 1 million square feet of commercial space. The attractiveness of commercial real estate is that its prices in Dubai are not as high as in other major cities in the world, and the profitability is quite serious. Currently, there is a tendency to increase prices for commercial real estate in the UAE.

The profit from leasing commercial space is a stable source of income, which, although it fluctuates within small limits, does not disappear.

The real estate market in Dubai is open to investors from any country, in comparison with the stock market, which provides greater capital visibility.

Demand for real estate is growing constantly, especially during the period of economic growth, which is now observed in Dubai.

With huge projects such as the entertainment city of Dubai, Palm Islands, Dubai International Financial Center (DIFC), the tallest building in the world, Burj Dubai, is now the right time to invest in Dubai.

In addition, in Dubai there are no taxes on property ownership, as well as taxes on profits from leasing it, which also enhances the attractiveness of investments.

In which areas of Dubai is commercial real estate being built?

The main areas where office buildings are being built in Dubai are Business Bay and Jumeirah Lake Towers. Offices are in great demand both in the Business Bay area and in the Jumeirah Lake Towers. A significant difference between these areas is that the Jumeirah Lake Towers area, declared a free economic zone, where the office owner is not a UAE citizen, has the right to open a company without the participation of an UAE citizen, the so-called "sponsor".

What are the price indicators (cost and rental) of commercial real estate in Dubai?

Commercial property prices range from US $ 1,800 to 6,500 per square meter in Dubai, depending on the area and project. So, the most expensive are the offices in DIFC (Dubai International Financial Center) and in the tallest building in the world Burj Dubai. Commercial real estate can be leased from US $ 600 to 1,000 per square meter.

What commercial real estate can RUSTAR Real Estate offer investors?

Highly qualified employees of RUSTAR Real Estate can offer clients commercial real estate in any district of Dubai, at the discretion of the client and in accordance with his plans for this property and the available budget. An individual approach is taken to each client at RUSTAR Real Estate. We sell real estate both from developers and in the secondary market, that is, we are engaged in its re-sale. Our staff will provide customers with complete information about both residential and commercial real estate and even show it if the facility is already built.

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