In recent years, the UAE has become one of the most attractive destinations for foreign investors looking to invest in commercial real estate, such as Shops for sale in UAE, as well as offices, land plots, and entire buildings, to name a few. Thanks to factors like a stable political environment, a growing economy, and a favorable tax system, Shops for sale in UAE offer a secure and profitable investment opportunity for those seeking commercial ventures.
The UAE government has taken steps to create an investor-friendly environment by enacting laws and regulations that protect foreign investors. For instance, foreign ownership of real estate in the UAE is guaranteed at 100%, with no restrictions on profit repatriation or capital gains.
What types of Shops for sale in UAE can foreigners purchase?
The UAE has become an attractive destination for investors in commercial real estate due to the growing city economy. Dubai, in particular, has weathered the global financial crisis better than many other cities worldwide, thanks to its diverse economy heavily relying on tourism, trade, and logistics services. As a result, the UAE's economy has rebounded, making it promising for those looking to invest in Shops for sale in UAE.
Foreign investors looking to buy Shops for sale in UAE can benefit from the city's favorable tax system. Despite the absence of personal income tax in Dubai, companies are required to pay a corporate tax rate of 20%. Additionally, there are no capital gains or inheritance taxes imposed on individuals. These factors invest appealing to foreign investors, allowing them to invest in commercial real estate like:
- Offices: Investors can purchase office units throughout the city based on their licenses.
- Coworking Spaces: Investors can invest in coworking spaces, lease the areas to other companies, provide them with licenses, and more.
- Shops for sale in UAE: Another excellent unit that investors can use as an investment, allowing them to maximize returns or simply set it up and use it as a private unit.
- Others: Apart from these three types of properties, there are many other types of commercial properties in Dubai that non-residents can buy for investment or business expansion. These include exhibitions, commercial buildings, villas, lands, warehouses, factories, and labor accommodations.
Where should you invest in Shops for sale in UAE?
If you are seriously considering investing in Shops for sale in UAE, here are some locations in Dubai that you should pay attention to:
Dubai International Financial Centre (DIFC)
- The DIFC is the financial and technological hub of the city, home to some of the world's largest companies.
- It includes the Dubai Stock Exchange, Emirates Towers, Dubai Future Foundation, and the Museum of the Future.
- The complex has many commercial towers with multiple units for sale or rent, as well as a variety of upscale restaurants.
- It also features a retail center with retail outlets for sale in the UAE, connected to all buildings within the Avenues extension.
- DIFC is an excellent community for individuals to meet and interact regarding business matters, with many upscale members' clubs for investors and businesspeople to gather and network, such as the Arts Club.
- DIFC also houses many affordable coworking spaces, making it a suitable option for those coming to the UAE on temporary work permits. The complex is easily accessible through the Dubai International Financial Centre Metro Station.
- For renting, properties in DIFC start at an annual rent of AED 65,000. For investors, buying Shops for sale in UAE in DIFC can start from AED 500,000 and above.
Business Bay
- Located in the Business Bay district, the Business Bay is home to over 100 different commercial properties, along with various residential properties.
- It is a community where residential and commercial coexist.
- Besides the diverse commercial properties, Business Bay also features several five-star hotels, including JW Marriott Marquis and Taj and Grand Millennium.
- There is a strip of restaurants and retail outlets connected through the Executive Towers, which are both residential and commercial properties.
- The Business Bay is known as the Bay Avenue and also includes an outdoor park, a bike and running track, and a children's play area.
- Business Bay is a great place for socializing and meeting like-minded individuals. There are many cafes and restaurants where workers often hold meetings or discussions. There are many Shops for sale in UAE, and the community is easily accessible by metro through the Business Bay Metro Station and bus station.
- For renters, properties in Business Bay start at an annual rent of AED 100,000. For investors, unit prices start from AED 800,000.
- In conclusion, if you are considering starting your next venture or are a resident looking for Shops for sale in UAE to kickstart your dream project, the UAE is undoubtedly a city full of possibilities. Therefore, if you are seriously and swiftly considering investing in Shops for sale in UAE, these are some locations in Dubai that deserve your attention.
Downtown Dubai
Downtown Dubai is the central hub of the city, home to the Burj Khalifa, Dubai Mall, numerous five-star hotels, Dubai Opera, upscale restaurants, retail outlets, and various residential and commercial properties. It is an excellent location for those starting their business journey, featuring numerous coworking spaces and hosting many startups, making it a fantastic place to connect with like-minded individuals.
The Bay Avenue Souk in Downtown Dubai also houses many Shops for sale in UAE, along with five-star hotels offering coworking spaces. The community is easily accessible via the metro, through Dubai Mall station, with buses and taxis readily available.
For renters, unit prices start from AED 350,000 annually. For investors, prices for properties in Downtown Dubai start from AED 8,500,000 and above.
Jumeirah Lakes Towers
While primarily a residential community, Jumeirah Lakes Towers (JLT) is home to some of the best Shops for sale in UAE. The community consists of 26 clusters spanning 68 buildings, five-star hotels, retail outlets, restaurants, cafes, and Shops for sale in UAE, all surrounding a central lake.
JLT's towers feature over 100 different commercial properties within the community, offering individuals the freedom to live in the same community or use the metro, accessible through metro stations.
Jumeirah Lakes Towers also provides easy access to supermarkets, restaurants, cafes within the community, and the Dubai Marina Mall metro station for those who enjoy midday shopping.
Five-star hotels like Taj, Crown Plaza, and Mövenpick make Jumeirah Lakes Towers an excellent place for business professionals looking to build relationships. It offers various lunch options and coworking spaces for networking.
Motor City
Situated in the western corner of the city, Motor City is a charming place for those looking for Shops for sale in UAE in a quiet and peaceful community. Motor City is also home to the Dubai Autodrome and numerous residential units, located within a two-kilometer radius of Dubai Hills Mall.
Motor City houses the Motor City Business Complex, Dubai Autodrome, and the Formula 1 Entertainment Park. Built as a city within a city, Motor City is home to many supermarkets, retail outlets, restaurants, cafes, and Shops for sale in UAE. However, due to the community's size, it may not be suitable for walking. There are over 200 business units within the community, creating a mixed-use community that welcomes many families and individuals.
For renters, Motor City rental prices start from AED 90,000 annually. For investors, property prices in Motor City can be as low as AED 600,000.
Dubai Investment Park
This is the business district in Dubai South, home to large factories, commercial real estate units, and various coworking spaces. Dubai Investment Park is a recently developed complex accessible by metro through the Dubai Investment Park metro station and bus stations, located 10 minutes by car from the Dubai Exhibition City.
Dubai Investment Park features over 250 commercial real estate units, making it an excellent place for new businesses or factories to start their space. Easily accessible, it includes restaurants, cafes, and supermarkets within a five-kilometer radius.
While the community is still under development, it has quickly become a hot spot for commercial real estate, accessible easily through the free zone at Jebel Ali, making it a great location for real estate companies.
For investors, Dubai Investment Park prices start from AED 700,000 for commercial units and AED 10,000,000 for warehouses.
Who Can Buy Shops for sale in UAE?
Citizens of the United Arab Emirates have the privilege of purchasing properties with full ownership anywhere in the country. This also applies to citizens of certain Middle Eastern countries such as Saudi Arabia, Oman, Bahrain, Kuwait, and Qatar.
Foreigners from other countries can buy properties in the UAE under certain conditions. In designated areas known as freehold zones, full ownership of properties is allowed. However, in other parts of the UAE, ownership is restricted to leasing only.
In the case of leasing, the individual owns only the physical structure for a period of 50 to 99 years, but not the land it is built on.
For full ownership of properties in freehold zones, foreigners can obtain the UAE Golden Visa. There are nine freehold zones in Abu Dhabi and approximately 50 in Dubai.
Benefits of Real Estate Investment in the UAE
Did you know that Shops for sale in UAE offer multiple benefits such as:
- Higher Return on Investment (ROI): Commercial real estate provides an ROI ranging between 10-12%, surpassing residential units.
- Capital Appreciation: Commercial properties in the UAE are a wise investment due to increasing demand and limited supply, resulting in capital appreciation.
- Better Payment Plans: Commercial real estate sales offer better payment plans, such as single or biannual payments, compared to residential sales.
- Long-Term Lease Contracts: Commercial property lease contracts can last longer compared to residential leases, providing stability.
- Residency Visa: Owners of commercial and residential properties can immediately obtain residency visas upon purchasing Shops for sale in UAE.
- No Property Taxes: There are no annual property taxes for property owners. Income taxes on rental income are also not applicable, with taxes only due during property transactions. The tax rate is typically low, ranging from 2-4%, split between the buyer and the seller.
How to Buy Shops for sale in UAE
In this paragraph, we will explore the essential steps and factors you need to know before diving into the world of purchasing Shops for sale in UAE:
- Market Research: Before embarking on your journey to buy shops in the UAE, thorough market research is necessary. Identify areas aligning with your business goals, such as high foot traffic, proximity to major business centers, or specific industrial clusters. Monitor the latest real estate trends, as they can significantly impact property values and rental yields.
- Property Type: The UAE offers a variety of commercial properties, including office spaces, retail shops, warehouses, and industrial units. Each property type caters to different business needs and growth plans. Consider factors like size, layout, facilities, and infrastructure when choosing the type of shops that suit your business.
- Legal Framework: Understanding the legal framework and regulations surrounding commercial real estate transactions in the UAE is crucial. Ensure compliance with the laws and regulations set by the UAE Land Department. Seek guidance from experienced real estate professionals who can navigate you through legal aspects, including property ownership, lease agreements, and property deeds.
- Professional Assistance: Working with a real estate agent or a reputable consultancy firm can significantly simplify the buying process. Experienced professionals have in-depth market knowledge, access to a wide range of properties, and negotiation skills to secure favorable deals. They can assist in property selection, due diligence, and negotiating contracts, saving you time and effort.
- Budget Planning: Determine your budget for purchasing Shops for sale in UAE, considering not only the purchase price but also additional costs such as registration fees, property valuation, and legal fees. Consider whether you will finance the purchase through a mortgage or other financing options. Having a clear budget and financing plan is essential to avoid financial pressures and ensure smooth transactions.
- Property Inspection: Examine the condition of the property, infrastructure, facilities, and any existing lease agreements. Verify property ownership and ensure all necessary approvals and permits are in place.
- Negotiation: Once a suitable commercial property is identified, negotiation becomes a crucial step. Work with legal experts to draft a clear and comprehensive purchase agreement outlining all terms, conditions, and responsibilities for both parties.
- Transfer and Registration: After finalizing the purchase agreement, the process of property transfer and registration begins. The UAE Land Department plays a central role in overseeing property transfer and ensuring compliance with all legal requirements.
