Are you considering buying a shop in Dubai?
As a landlord, the best positioning of any shop is a complicated but necessary strategic decision. If you minimize visibility too much, you will not get very many customers. This will lead to the shop owner failing to make his rent payments to you. There are other issues, too: is the building enabled for wi-fi, is it in a bad area economically for business, and so on.
If you are a landlord, you have probably had quite a few businesses have problem paying rent. You may have even had to evict business owners after a string of failures to pay rent. These problems really come down to visibility and to customer service. You can have the best location in the world but deliver horrible customer service and your business will still fall apart. Likewise, if you deliver superb customers service and have the worst location in the world and still prosper.
As a landlord, your concern is to increase your real estate portfolio. Here are some comparisons of different towers in Dubai for you to consult as you determine whether buying a shop in Dubai.
The Regal Tower in Business Bay
Business Bay is one of the business hubs in business bay. It is designed to meet business needs and is home to some of the largest corporate organizations in the region, if not the world. This means that businesses in Business Bay should primarily cater to other businesses.
A typical shop for sale in Regal Tower in Business Bay will have a free chiller, reserved parking, and a toilet to be shared by staff and customers alike. The main design of the store will be shell and core, which means that the shop will have a framework, but the inside will be completely customizable within the frame of the shop.
There is currently only one shop for sale available in Regal Tower, whose price is AED 9,617,590. Businesses owners who will rent this property can expect to pay between AED 421,770 and AED 510,935. This means that the time until rent payments alone (not counting costs such as maintenance and other expenses) give a landlord a return on investment will be between 19 and 23 years, making this a medium-term investment if the landlord does not sell it before the property itself pays off.
The ideal business type for the Regal Tower is a business-to-business provider. This is because other businesses are literally right down the hallway from this shop for sale. Therefore, if you cater to your most immediate and available clients, it will provide other businesses with the goods and services they need to succeed.
The Oxford Tower in Business Bay
The Oxford Tower also has a variety of locations where one can by a shell and core design for a shop for sale. They usually face the road. The Oxford Tower is near the Burj Khalifa, a tourist attraction and the world’s largest residential tower. It is also near the main highways of Emirates Road and and Al Khail Road.
The Oxford Tower is also in an exclusive area of Business Bay. Those buying a shop in Dubai in the Oxford Tower can expect a free chiller and a reserved parking space.
Here again, like the Regal Tower, the best business is either a business-to-business service provider or an office supply store. Shops for sale in the Oxford Tower cost between AED 1,200,000 and AED 2,200,000. There are no shops currently for a rent in the Oxford Tower; however, a comparative tower is the Capital Golden Tower, which rents for between AED 121,000 and AED 324,437. This means that a shop for sale in the Oxford Tower might take between 4 and 18 years to turn a profit on rent payment alone, meaning a property here can either turn a quick profit, or will take over a decade to turn a profit.
Saba Tower 1, Jumeriah Lake Towers (JLT)
Saba Tower 1 in Jumeriah Lake Towers (JLT) is residential tower. It has a glass ceiling lobby with dynamic water features, high speed elevators, and quality furnishings from Germany. Shop owners who rent her will also have access to a shared toilet for customers and staff alike, and reserved parking.
A shop owner can maximize a shop’s visibility due to the health clubs and multipurpose conference rooms in the tower. However, to gain more of a customer base, the business will have to advertise outside of the tower.
Currently, there are two businesses available in Saba Tower 1 in Jumeriah Lake Towers (JLT). One is a fully operational bakery restaurant, which includes the shop and all equipment, including display cases, posters, kitchen equipment, and so on. It has 40 indoor seats and 16 outdoor seats. The other option is a running restaurant, which also includes kitchen equipment, display cases, posters, and so on.
Since Saba Tower 1 is primarily a residential tower, shops such as restaurants, health clubs, gyms, and so on are ideal. Shops for Sale in Saba Tower 1 cost between AED 3,499,500 and AED 3,500,000 and rent for roughly AED 400,000. This is a medium-term investment as it will take roughly 9 to 10 years to make a profit on rent alone.
Conclusion
Regal Tower and Oxford Tower in Business Bay both cater to businesses. It is best for shop to be a business-to-business service or goods provider, though a small café will also work. Meanwhile, Saba Tower 1 is a residential tower, and shop there would be best as a bakery, restaurant, or other business catering to residents instead of businesses. All three require at least one decade in order to make a profit on rent alone.