Business bay is a fantastic right next to the Burj Dubai development which will be the financial hub of the Middle East, it is a fantastic investment.

Amin,
Business Development Manager (Mortgage)
Barclays Bank

You will not get anything in Business bay for 1000 dhs psf. The current prices are between 1900 to 2300 dhs psf. The current rentals are at 250 dhs psf if not more in some areas.

Watch out for gross and nett area. When you see abnormal prices than the prevailing rates, it could be gross area.

Markets are getting hot and will have to correct sometime. Can't expect the prices to go up forever. As long as the supply and demand curves don't intersect thing should be OK. As a investor you should be prepared for corrections.

A 1000 sq ft office is considered good and which would seat around 11 people ( @ the rate of 100 sq per person )

Commercials tend to give a better return both on ROI and rentals. I myself have invested in 2 commpercial properties and they have done well so far. If I was given the choice, I would go for commercial.

As the saying goes "warehouses do not weep". You will not have tenants calling and complaining of a leaking faucets or broken pipes.

Good luck

Just to rectify the figures a bit, there are commercial units selling at very close to 3000 per sqft.
As for rental, we're in touch with a company achieving between 350 and 400 per sqft for them.

Regards,


Rammah

Rammah,

The figures quoted by me could be pessimistic values. Dubai at the moment is starving for office space and since the supply & demand curves have not intersected as yet you are looking at figures of 350 to 400 dhs psf.

Sometime, somewhere tha markets have to cool and mature. Dubai markets should not crash but will definitely correct. But when all the commercials come into the market, supply might exceed demand at which time rentals start coming down.

Investors just can't go as per the current rentals. They will have to take into account the correction in rentals when all the commercial bldgs come into the market.

OPUS from omniyat is selling between 2500 to 3000 dhs psf. Deeyar is not too far away with 2200 to 2400 dhs psf. The question is for how long with this go on. If investors buy whatever the developers are dumping in the market, then there could be trouble at the end of the road.

One needs to do their homework before investing. The best is to put all the values onto a mortgage calculator. I have invested in business bay and JLT and even if the markets correct by 50%, I should be able to pay my monthly EMI.

Regards

Roshan

Of course pple should do their homework and due diligence before buying, and should afford whatever they r buying. However, I think that the prices in Dubai are far from their peak. Therefore, prices are still to go up. Compare prices with Singapore, HongKong, Tokyo, London, NY and if Dubai has plans to be the "City of the Future", then prices will reach if not exceed prices of those cities. Why not?

3000 AED per sqft is only £400 per sqft!

When things were getting launched last year at 1400AED per sqft, some people thought it's too high, and decided to hold on and how prices will shape up. What happened a year later? we are approaching 3000per sqft.

I hope we can revise this thread in Jan 09, and we'll be able to see if prices adjusted or just kept increasing. But if you have money to invest now, my advise is not to wait, cuz you'll regret it [IMO].

Rammah

Hope your predictions come true. If they do I can retire earlier.

Thanks

Roshan

I'm confident you will.

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If you would like to buy a business oriented Dubai investment property you should definitely look in Business Bay. Business Bay is a wonderful area to look for a investment property in Dubai because there are many business owners that would love to have their business in the area but cannot afford to buy. Because the area is very popular you could buy a investment property in the area with almost a guarantee that you will have a renter in the location for as long as you own the property. Chances are you may get someone to offer to buy you out somewhere along the way, at which point you can decide whether you would like to keep this particular Dubai Investment property or move onto something bigger and better.

hi, you should invest in Business Bay, the price are now more than that and the difference is because of the location in the area,
you should also think about DIFC and Tecom, free zone area so no need for a local sponsor to stand up a business,

Freezone isn't only about not needing a local sponsor. Besides the 100% foreign ownership, the main benefits of freezones compared to other parts of Dubai are:

1- 50 yrs guarantee of no corporate taxation, renewable 15 years at time after the initial 50yrs.
2- No import duties, compared to a 4% import duties elsewhere.
3- Fast track business setup. [20 minutes guaranteed].

Regards,


Rammah