Commercial real estate is not as popular as Properties for Sale in Dubai real estate, but these are in good shape in the current market phase. What you need to know about commercial real estate. When it is worthwhile to sell and what the future price development of commercial real estate will look like, is summarize below.
How does the sale of my commercial property work?
If you have decide on Properties for Sale in Dubai, the first step should be to carry out an initial valuation. You can conveniently receive this free of charge by email using our evaluation form. If you like the rough valuation, we will arrange an on-site inspection with you. During the appointment, we will evaluate your property extensively and discuss all further steps of the sale with you.
Marketing your commercial property
After the extensive evaluation of your commercial property, we take care of the professional marketing in the next step. In order to market your commercial property successfully and at the highest price. We advertise your property on the largest portals in DUBAI.
In addition we have a Europe-wide network of prospective customers and investors. To whom we also offer your Properties for Sale in Dubai. So that you also get a good overview when marketing your commercial property, we will inform you regularly about the current status of the marketing.
If, after successful marketing, a prospect has decide to purchase your property, we will negotiate the final sale price of your property in consultation with you. Once the sales price has been determine. We then check the creditworthiness of the prospective buyer and apply for all the necessary documents for you to complete the purchase. When concluding the purchase, we will check the notary contract for you. Our work only ends when the handover of your property has been successfully complete.
Which commercial properties do we market?
We at Fajar realty have specialize in the Properties for Sale in Dubai real estate in general. Our Europe-wide network of prospective customers and investors plays into our hands here. As soon as we include your property in the sale, we publish it on the regular real estate portals. In addition, our existing investors and interest parties provide additional information. So we can market your property more quickly.
You can market the following commercial properties through us:
- Offices and practices
- Warehouses, halls and production facilities
- Hotels and restaurants
- Retail space
- Commercial land
In addition, we have already been able to successfully market real estate. Such as gardening shops and laundries , as well as other specialty trades.
What are the advantages and disadvantages of selling commercial real estate?
If you want to sell Properties for Sale in Dubai, there are some differences compare to residential property that can have a positive as well as a negative impact on the value. So that you can highlight the valuable aspects for potential buyers, you should know the points list below.
One argument in favor of buying a commercial property are the lower purchase price factors (also known as multipliers) compare to residential properties. This means that commercial real estate usually pays off faster than residential real estate due to the rental income.
Nevertheless, there are differences in terms of the various types of property, especially for investors. So residential properties are usually ideal for beginners. While commercial properties with no experience and knowledge usually are not advisable investments. This is due to the various pitfalls that a commercial property can bring with it. Residential and commercial buildings are not quite as complex as pure commercial properties, but even here beginners should only invest with extreme caution.
In addition, however, professionals can generate a decent return on commercial properties . The main factors here are the better ratio of purchase price to rent as well as the fact that it is usually possible to plan for a period of time base on time leases.
It is also worth mentioning that banks also tend to view commercial real estate as risky. This is reflect, for example, in the lower mortgage lending value that commercial properties have compare to residential properties. The lower total usage time also plays a role here. While residential properties usually have a total useful life of between 60 and 70 years. Commercial properties are only assume to be 30 to a maximum of 60 years.
So if you want to sell your property
So if you want to sell your property you should take the above factors into account. Find good arguments why your property is of interest to the prospect. We also recommend that you break down all the figures, data and facts about your commercial property as transparently as possible:
- Is the property rent out?
- If so, what is the annual rental income?
- Is the rent default risk high or low?
- What is the expect total useful life?
If considering the many influencing factors for an initial valuation is too time-consuming. We recommend that you evaluate your property online in our real estate calculator. There you have the opportunity to enter the key data of your property and receive an initial valuation. If you like the valuation, we can arrange a free viewing appointment with you.
Price-relevant factors for a commercial property
In addition to the above-mention advantages and disadvantages of commercial real estate companies in Dubai compare to residential real estate, there are many other factors that influence the value of your commercial real estate. Below are the most relevant factors.
Probably the most important point when selling a commercial property is the lease. Commercial properties usually have a fix-term lease – which is why the remaining lease period still plays an immense role in the sale.
If the lease expires soon and the tenant already signals that there is no interest in an extension, you cannot call up a price as high as with a freshly start 10-year lease. The select rent and any additional agreements – for example an index or graduate rent – can also become relevant factors here.
Division of the property
The spatial division also plays a major role in residential real estate – but the influencing factor is even greater in commercial real estate. This is because the conditions that a building has to meet vary from branch to branch.
For example, a large production hall in the best inner city location will not be as much in demand as smaller shops. The same applies to winding buildings – only very few industries can do anything with them.
Therefore, before selling a commercial property, it can be worthwhile to consider alternative concepts. Can a wall possibly be built in or demolish? Can the commercial property be converte into residential property?
If you have difficulties in the conception of alternative uses, we are at your side as a broker. Thanks to our advice, some sellers have already been able to convert commercial property into living space and implement similar alternatives.
Industry of the tenant
Similar to the selection of a tenant for residential real estate companies in Dubai, the area of activity of the commercial tenant also plays a major role. A bar or pub in a remote location will quickly go bankrupt. The same applies to industries that are dying out, such as an internet café or laundry.
Always keep this in mind when choosing a tenant. If the business files for bankruptcy while you want to sell, you will have to accept significant discounts in the purchase price. So that such a case does not occur. We can help you at this point and assist you in the search for new tenants.
Location, location, location!
Now we come to the aspects that are also interesting for the pricing of residential real estate. First and foremost, of course is the location. The exact location plays an immense role, especially for commercial properties. A bar or a restaurant on a main street has a high sales potential from casual customers and is therefore interesting for buyers, as a higher rent can be realized
However, if the property is on a side street, the sales potential is lower. This then also reduces the potential sales price. As already mentioned, space that is place unnecessarily also plays a role.
As an example, reference is again made to the large warehouse in the direct city center. Trucks cannot maneuver so well here, which is why most manufacturing industries do not want to be located in this location.
The result is a drop in prices. On the other hand, ideally designed objects in a city center location, for example for a restaurant or a shop, currently have the highest prices – so get advice from an expert when setting prices.
What are the advantages of selling through professional realtors?
If you as the owner of a commercial property should make the decision to aim for a sale due to the current market situation. We recommend that you involve yourself as a broker.
Probably the greatest advantage that you get from us as a broker is our good knowledge of the market. Our nationwide activity at several locations enables us to view the real estate companies in the Dubai market holistically as well as regionally. Your advantage is that we can achieve a reasonable and high sales price with you.
The setting of the price of the property is a particularly sensitive issue, as both too high and too low a price have a negative impact on the success of the sale. The selling price is too low, you will lose hard cash. If you set the price too high, the property will not be sold.
If you then lower the price. It can negatively affect your negotiating position. Potential buyers who have noticed the price reduction now assume that the new price is not final either and are therefore more willing to act and thus depress your actual sales price.
Furthermore, we save you a large part of the work, as several hundred inquiries can quickly come up, especially in frequented locations. So that you don’t worry your head with such a flood of inquiries. We take this work off your hands and look for suitable prospects for your property.