Quote:
Originally Posted by centurygrove
what kind of returns do you think will be achievable in early 2009 from business bay ? i was told rents will vary from 300-400 aed per square foot ? would anyone recommend whether to buy 1000 square feet of space or go for something slightly bigger
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For argument sake, If my entire fortune was a billion pound, I wouldn't hesitate in putting 900M in Business Bay as an area. [90% of my entire capital shows how much faith I have in it, and how much I beleive it to be an extremely LOW risk investment, and the best in the world today!]
I'll probably spread it between several developers, and will only use the largest names to avoid surprises from new-comer and smallish developing firms.
Rentals will keep increasing for few years, and I expect the government to end up having to put a cap towards the increase per annum similarly to what was done for the residential properties after the huge rental increase in 2003/2004. In 2005, the Gov capped the increase by 15% per annum, and then in 2006 it lowered the cap to 7% every 2 years! But that's to stabilize the market which was going out of control with those increases, and making Dubai harder to live in if it was to keep soaring at that rate!
I am employed by DAMAC Properties, and work in their Mayfair office. Feel free to pm me if you wish to hear about our availabilities there, and I'll be happy to go into more details if you wish to. We can arrange to speak over the phone for a start, and I can also go through a powerpoint presentation that I have designed specifically for commercial investments in Dubai! [it includes facts and figures of capital growth there for the past years, and the projections for the future will be left for the investor to imagine once enforced with the full pack of information that we can provide]
Regards,
Rammah