As preparations for The International Property (IPS) Show gathers momentum, we are receiving a lot of questions ranging from investment opportunities, the right time to invest, to which properties to invest in?
The IPS, as an ultimate platform for companies that seek to inaugurate strong personal relationships with worldwide professionals in the property and investment industries, will in this article, cover one of the burning questions, that is; ‘How to choose a property for commercial use?’
Over the past 2 years, the real estate market of Dubai witnessed an influx of investors from across the globe and most of them were vying for commercial properties. Choosing a commercial property is a lot more complicated than choosing a residential property, and the consequences of making the wrong choice can have a negative impact on the intended business.
For most people, the choice of their business premises; their location, type, size, and facilities - is critical. The factors to take into account may differ from the type of business you want to focus on, so it's worth carefully drawing up specifications setting out your main requirements while considering the below factors:
Location.
Choose a location that is convenient for your customers, employees, and suppliers, but isn't too expensive. Some factors you might want to consider when deciding on location include, proximity, where competitors are located, delivery restrictions, parking restrictions, and business rates.
Commercial Property Requirements:
You need to visualize and prioritize what the most important factors are, for your business when deciding on a suitable commercial property. Also, think about your long-term business plans and how these might affect your choice of business premises. For instance; consider property size, layout, location, facilities, structural requirements, and parking to your business needs.
Buy or Rent Commercial Property:
Determine which one works better for you, either buying or renting a commercial property is best for your business needs. Compare the advantages of renting commercial property versus the advantages and disadvantages of buying business property.
Legal Scrutiny:
There are a number of legal considerations when choosing a commercial property and these include planning permission, visa requirements, health, safety, and fire regulations, insurances, accessibility, and licenses.
Business Rates:
Before agreeing to buy or rent commercial property, get an idea of what you are likely to pay in business rates – make an estimate of your rate bill.
Search for Commercial Property:
Check potential premises that fit your specific requirements and create a shortlist of the business properties you might want to view. View & make notes before making the final decision.
In light of the above steps to consider when choosing a property for commercial use, there is need also to make an analysis of which option is the best for your business, between renting or buying the property.
Obviously, this all depends on your particular requirements but there is a general rule that the overall cost of buying a property (mortgage), legal expenses, etc – will be higher for the first five years that you own it than you would pay by way of rent. For the second five years, the figures will probably be pretty much the same. For the third five years and beyond, ownership will probably be cheaper than the rental.
Whether you decide to buy or rent your commercial property, a combination of a lot of thinking on your part (decision-making process), a good estate agent, and a good lawyer will make the process as painless as possible. After the whole process, there are four main key elements you will need to bear in mind:
Real estate is a highly competitive market that requires additional support from different sectors to improve the various factors that affect its current condition and be able to maximize its full potential. As such, the International Property Show brings you a world-class event where the global real estate community can do business at a personalized level and avail immense benefits.
The International Property Show (IPS) which is left with only a month to go, is an exhibition platform of choice for all real estate matters in Dubai, embracing both local and international top players within the industry. Attending the event can leverage opportunities to meet with industry experts all under one roof.
Since its inception, the annual mega-property event has been attracting 100+ top-notch real estate exhibitors from 20+ countries and 10K+ visitors in Dubai every year.