Are you looking for a best shop for sale in Dubai?
Dubai is one of the major cities in the world that tourists and expatriates alike think is a paradise. This is because Dubai is a hustling, bustling metropolis full of fine dining, adventure, and a vibrant nightlife at an affordable cost. This is usually because the currency of tourists and expatriates performs well against the dirham, the currency of the United Arab Emirates.
There are other reasons why expatriates enjoy Dubai. They can get a villa or apartment for rent anywhere they want in the city. If they have a family, they might want to get a villa that is farther away from the center of the city and is safer. If they are bachelor, perhaps living in the center of the city would be great a place to meet the love of your life or at least enjoy the time you are living on your own.
This is also true for businessmen and landlords. When landlords purchase a shop for sale in Dubai, they intend to lease it to business owners. If the business is profitable, landlords can count on a steady stream of rent payments from business owners. If the business is not successful, the business owner will go bankrupt and the landlord will temporarily find himself without rent payments from that business owner until a new one leases the property.
So, if you are a landlord in Dubai, how would you make sure you are getting the right shop for sale in Dubai? Read on to find three ways to make sure you are getting the right commercial property for sale in Dubai.
Locations
First, landlords and business owners should be looking at the location of the shop for sale. This is not just limited to the neighborhood they are in; rather, it has more to do with the demographics of the area, the traffic that area has, and how visible this business will be.
The demographics and safety of the area are important. For instance, if your shop for sale is designed to sell food or coffee, you should not buy one too far away from the city center; likewise, if your property is configured to sell jewelry, you should not buy one that is in an area of high crime.
Other businesses will do better in other city sections as well. Business Bay is the business section, so a coffee shop will work there. Dubai Marina has a lot of nightlife, so a restaurant would work the best there.
Advertisements
Second, landlords and business owners should be looking at the best way to advertise the business. If the business is in a secluded area, then there should be a way to buy thousands, if not hundred of thousands, of ads to promote the business. This includes on media such as television, internet, and on public transportation. A business owner should make sure that they can afford to pay for these advertisements; otherwise, this will be a losing venture due to location.
On the other hand, sometimes advertising takes care of itself. If a restaurant, supermarket, or coffee shop is located on the ground floor of a residential area, for instance, all that will be needed to generate a steady stream of customers is a sign in the lobby. The same is true for a location near public transportation: if pedestrians pass the shop on the way to the depot, then the advertisement has taken care of itself.
The Rent
The worst thing you can do as a landlord is to price the rent too high. If this happens, you will be responsible for driving the business out of competition rather than the owner’s poor business model. Pricing yourself out of rent payments due to high rental rates is a self-inflicted wound that can be easily avoided.
On the other hand, if you make rent too low, then the business owner gets a better deal. While he or she may make the rent payments on time, you as the landlord will be cheating yourself out of income. This is also not desirable.
The best rent is, therefore, a price that maximizes your profits while making sure the business owner can meet their obligations in all months.
Conclusion
If you want to be a commercial landlord in Dubai, you must know which shop for sale to get. To successfully invest in a shop, you need to evaluate its location, determine if the advertising costs for that location are reasonable, and ensure that the rent you set is realistic enough to generate profits from your investment.
Using this guide, you will be able to figure out which shop for sale you should get in Dubai!