Critical Factors That Affect Commercial Real Estate Value in Dubai

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Planning to buy or rent commercial real estate in Dubai? When selecting commercial properties such as warehouses, retail or office spaces, the first thing investors look at is the property value. As an investor, your goal is to make the highest returns possible. To achieve that, you need to be aware of all the different factors that can affect the value of a commercial property. According to the top commercial real estate companies in Dubai, several factors such as location, local amenities, transportation links and many others come into play. Let’s discuss a few of these at length to better understand their impact on property value. 

Location:

Location is among the most critical factors that affect property value. Commercial property estate agents Dubai will tell you that properties that offer easy access to necessary amenities such as healthcare facilities, shopping centers, entertainment places and so on tend to have a higher price tag than others. Unexciting neighborhoods or areas with a high crime rate do not attract investors. That is why property prices in those areas tend to be low. Dubai, being a real estate paradise, boasts numerous “hot zones” where commercial property value remains high due to economic prosperity and steady growth.

Economic state:

It goes without saying that the state of the economy dictates the value of commercial property. In a booming economy, where people make decent money, property prices soar. Dubai has one of the most stable economies in the world, and because of that, its real estate sector is thriving. Investors from around the world are vying for a piece of the premium commercial real estate, which is why the competition here is fierce. However, you can find a suitable commercial property with the help of reliable commercial property agencies Dubai.

Age and condition of the commercial real estate:

Apart from external factors such as location and economic state, attributes related to the property can also affect its value. When it comes to assessing the overall quality of the property, commercial real estate companies in Dubai consider the age and condition above all else. Typically, newly built commercial real estate spaces tend to be costly. Since the things like the roof, plumbing, electrical, and appliances tend to be in their best condition, investors don’t need to worry about spending money on them. Older properties, on the other hand, may cost significantly less. However, they may require repairs sooner or later, and major repairs such as fixing the roof may cost a small fortune.

Upgrades and updates:

Let’s say a commercial property is not necessarily old or worn out, but what if it does not meet the standards that you require? In that case, you may need to make renovations, upgrades and updates depending on your personal requirements. According to commercial property estate agents Dubai, the value of a property depends on the kind of upgrades it requires. If a property needs a complete makeover, you can expect it to cost less than one that is ready to move in. 

Buyer’s perception of commercial real estate in Dubai:

When commercial real estate companies in Dubai talk about buyer’s perception, they basically mean the opinion that potential buyers have about a particular commercial estate. Several factors can influence the buyer’s perception about a property, and this perception has a great impact on the property’s value. For example, a buyer may form an opinion based on market observations. If they find the neighboring properties at a low value, they may assume the property market of that area is going through a slump. It may even deter them from investing in that area or at that moment. Foreclosure properties have the same effect on the neighboring properties.

Expo 2020:

Expo 2020 is finally taking place in Dubai after being postponed due to the COVID-19 pandemic. The World Expo is currently ongoing and will continue until March of 2022. An event of this magnitude and size has several long-lasting benefits, and it continues to draw big businesses to the city even after the event is over. According to commercial property estate agents Dubai, the real estate sector has seen a massive boost ever since Expo 2020 was announced. 

Large sums of money were invested in the city’s infrastructure to prepare for the event. It offered a fiscal stimulus and created employment. That, in turn, formed a “trickle down” benefit that reached the wider economy of the city. As this economic boost is further monetized, it is likely to increase demand, fuel population growth, and attract investors. Needless to say, the Expo 2020 will not only affect the city’s real estate sector, but will also have a significant impact on property value.

These are some of the most common factors that affect property value in Dubai. If you are planning to invest in a commercial space, make sure to consider these factors and identify the properties that will be ideal for you. 

RiseUp, one of the top commercial property agencies Dubai, is here to help!

If you are struggling to find a suitable commercial property in Dubai, consider hiring one of the best and most well-known commercial property agencies Dubai. Since its inception, RiseUp has worked with both amateur and seasoned investors in their search for the best investment properties. Through the years, we have thoroughly observed and studied the city’s real estate market. With that, we have gained a keen insight into this dynamic industry that has proven invaluable in guiding investors to the right prospects. 

When working with RiseUp, you get access to some of the best real estate agents in the city. With their knowledge and expertise, you are guaranteed to find a property that meets your needs. Furthermore, we have a team of investment advisors and legal experts who can help you make sound investment decisions. Whether you are looking to get into real estate investing or planning to expand your investment portfolio, RiseUp can help make the process much easier and more streamlined. To know more about how we can help you, get in touch with us today!

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