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What’s the best advice for a first time real-estate investor?

If you want to buy commercial real estate consult at Real estate companies in Dubai .You have to keep in mind that it differs significantly from other real estate: the aim is not to live in the property, but to accommodate a company in it. The best-known commercial properties include offices, medical practices and shops, but also warehouses and arable land. In addition to the pure property value, the expect profit also plays a role in commercial properties – and this is usually not easy to quantify.

What is a commercial property?

A commercial property is use when the property is use primarily for commercial purposes and when the focus of this use is on the intention to make a profit.

Commercial  Real estate companies in Dubai can be classify into five distinct categories.

Production real estate (including warehouses)

Commercial real estate (including supermarkets, retail, gastronomy)

Logistics and office properties

Leisure properties (including holiday apartments)

Special or special real estate (including train stations, airfields, hotels)

Special properties differ from other commercial properties in their limit use. While retail properties can be used relatively flexibly, special properties such as train stations or hotels are design and built purely for this purpose.

The classification of a property at  Best Real Estate Companies in Dubai as a commercial property has an impact on its construction, tax and rental law considerations. For example, you have far more freedom to negotiate with commercial leases than with regular leases. The legislator assumes that landlords and tenants negotiate on an equal footing in this case and that neither party needs special protection through strict regulation.

Buy or rent commercial property?

The question “buy or rent?” Is not only relevant in private life. Even if you want to open a business or office, you must first answer this question for yourself.

If you buy commercial space , you are independent of the requirements of your landlord. If the open office structure is a thorn in your side, for example, you can easily pull in additional walls and adapt the floor plan to your preferences. In addition, you can operate independently of rising rents, which can enable a higher profit in the long term.

However, there is a high financial burden associate with the purchase. You can only avoid long-term debt if you have a lot of equity. You also have to accept the low level of flexibility: With the purchase you are bound to one location for a long time. If it turns out that your service is not being well receive at this location. You need a plan B as soon as possible.

Decide to rent or lease the property

However, if you decide to rent or lease the property , you must adhere to the guidelines of your landlord. In contrast to residential properties, renting a commercial property does not necessarily mean increase flexibility. Commercial leases are often conclude as fix-term contracts for several years. Ordinary termination for both parties is exclude during this period . So if you discover that your business model is not working, in the worst case scenario you cannot terminate the contract directly, but instead have to pay rent for several years.

In addition, there is no cap in commercial leases and the rental price brake does not apply here. Instead, the landlord can set the rent at will. Index rents are also common, where the rent is link to the statistical index of living conditions: if this rises, you have to pay more. Sales rents are also not uncommon: the more you earn from your business. The more money the landlord can ask from you.

Both renting and buying a commercial property at Best Real Estate Companies in Dubai have tax advantages. When you buy the commercial property, you depreciate the property via the depreciation for wear and tear (Depreciation) for 50 years at 2 percent each. It is important, however, that this only applies to the property itself. The value of the property must be deduct, as we cannot speak of wear and tear here. If you rent a shop or an office, you can deduct the full monthly rent as operating costs.

Gewerbeimmobilien vermieten: Besonderheiten – Immobilien24.de
Best real estate companies in Dubai

How do I find a suitable commercial property?

You can find commercial real estate – like most other types of real estate – as advertisements in the daily newspaper, on the usual online portals or through a broker . While the supply of residential properties is usually quite large, the selection of commercial properties is usually much smaller. If you still have a certain purpose in mind in a certain area, there are usually very few properties to choose from. If you are planning to set up a business or to move your existing company. You should start looking for the Best Real Estate Companies in Dubai commercial property a year in advance.

Commercial broker: useful or not?

Since the selection and purchase of a commercial property is a very complex topic, many prospective buyers rely on the expertise of a commercial broker. Although this is associate with additional costs. The specialize commercial broker often has a good overview of the market and also has detail business knowledge.

In contrast to a regular real estate agent, the commercial agent will not only inform you about the property itself. But also about the market situation. Among other things he can give you information about the purchasing. Power of your potential customers and the competition at your desire location. Many commercial property buyers are willing to pay good money for this kind of inside knowledge.

But who pays the commercial agent? While there are strict guidelines and regulations for residential real estate. You can negotiate relatively freely with commercial Best Real Estate Companies in Dubai. Who pays the broker and how high his commission is depends entirely on the individual agreements between the broker and the client. Often brokers, buyers and sellers agree to orientate themselves on the current regulations that apply to residential real estate in the respective federal state. In Hamburg, for example, the buyer pays the brokerage fees, while in Bavaria the buyer and seller share the costs.

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