Like other investments, commercial real estate comes with both rewards and risks. In fact, if you have the money to risk, the reward can be significant. However, before you take the plunge, there are certain features you should look out for which can impact your decision.
The Dubai property market has grown exponentially in the recent past, making it a popular investment destination. There are numerous property types you can invest in the expansive city. For instance, you can invest in the Emaar Beachfront apartments which are some of the most popular off plan properties in Dubai. Also, you can choose the wide variety of townhouses in the Port de la Mer by Meraas.
But if you’re planning to invest in a commercial property, here are the features you need to look out for:
1. The surrounding area
Regardless of the property type, location is very crucial when investing in the property market. If you want to get good returns on your property, it should be placed in a good location. You shouldn’t invest in a property sitting in an area experiencing a slowdown. Ideally, if the property is already developed, it should be placed in a prime location where it can get maximum occupancy.
When investing in a commercial property that is already occupied with businesses, it is very important to consider the tenants. Also, consider the type of businesses involved when making the decision. For example, in most cases, many food establishments pay their rent late. So, you should consider the financial stability of the tenants with businesses on the property.
Parking space is very crucial in any commercial property. The tenants and their customers need easy access to parking. Depending on the type of commercial property, you might need to consider temporary parking space as well as a space to accommodate incoming and outgoing freight. Also, remember that parking is a major consideration when applying for approvals to use the property for certain purposes.
This will majorly depend on the location of the property. When it comes to leasing, properties with yard spaces are highly sought after especially if the property is located near an industrial area. However, these properties may be hard to find since most developers are nowadays maximizing the building area.
5. Energy efficiency
Due to the rising utility expenses, energy efficiency and running costs are important factors to consider when investing in a commercial property. Does the property feature solar? If not, is it possible to add solar systems to increase energy efficiency? Make sure you have answers to all these questions.