Why is Dubai commercial real estate a lucrative form of investment?

Over the past few years, there has been a popular trend of investing in off-plan residential properties. Having fewer opportunities in commercial real estate gives investors a sense of prestige as these units are limited and, therefore, more exclusive in nature. Commercial real estate also offers a stable and attractive source of income for owners compared to the returns yielded by residential properties. The higher cash flow a commercial property generates, the higher its value will be, unlike that of residential real estate, which is largely influenced by comparable properties. In comparison with residential tenancy contracts, commercial real estate leases are longer, with more flexible structures in place.

Mohammed Shihab AB, CEO of Investo Image Credit:

Do commercial properties fetch more returns than residential properties? Please explain.

Commercial property in Dubai is a great opportunity and Investo is highly focused on it. The future of commercial real estate in this city of dreams is strong As mentioned earlier, when compared to residential tenancy, commercial real estate leases are longer, with more flexible structures in place. While location and property features are important, the primary determinant of a commercial property’s value is the amount of revenue it can/will generate. As a result, increasing the value of the commercial property may be easier by making strategic decisions that increase the amount of income the property can generate. Investo has a strong team of experts, who are well aware of the market. We have been successful in connecting investors with the best commercial real estate investment and growing their money.

Many people believe that a leasehold property is as good as a freehold. What is the difference between freehold and leasehold property?

Freehold and leasehold are two forms of legal property ownership available to expats wanting to buy in the city. With leasehold ownership, you will get the right to own the property and not the land on which the property stands. Whereas freehold ownership allows the owner to have complete ownership over the property in addition to the land that the property stands on. Dubai Land Department (DLD) registers the buyer’s name as ‘landowner’ in the registry as well as grants a title deed for the property. The striking difference between property ownership types is the element of control. However, both the options have their perks, so do your due diligence and make sure you zero on the right property.

If you invest in freehold or leasehold property in Dubai, will the investor get an investor visa?

Yes, you can but it should be a minimum of three years of investment in property. The visa length varies between three to five years and can be maintained for as long as the investor owns property in the country. Also, note that investor visas are applicable on freehold properties only and not available on off-plan or leasehold properties. Investo has been able to bring in a significant number of foreign investors and guide them to get an investor visa. However, this type of investor visa doesn’t permit you to stay outside Dubai for six months at a stretch or consecutively.

Can you tell us about any new properties of Investo that are currently lucrative for investors? And why?

Investo is proud to announce three new properties, which are lucrative for investors as we’re giving them an option to either be an investor and enjoy quarterly guaranteed profits or be an equity partner with their name on the title deed. Our new proposals are commercial land investment with a 10 per cent projected return and title deed at Al Quoz Boutique Walk, strongly believed to be the next hot spot in Dubai.

We are also inviting investors for leasehold property, which is 80 per cent rented out by DHA. Investing in this property makes them an equity partner. We update all our new proposals on our website frequently. You can visit our website and contact us for any investment queries. Our team is always ready and willing to help you.