• How Location is Important on Commercial Real Estate

    A very common answer that you will get if you ask the experts about what should i look for most importantly while purchasing real estate is location and only location. Experts and analysts both are alike in this assessment that location is of prime importance when you plan buying a real estate property. This factor is not just pertinent when you buy commercial real estate. The location plays importance if in the future you contemplate to sell off that property too.


    Importance of the Location


    As mentioned earlier too, location is probably the most important factor to consider while selecting on a commercial real estate property. It is probably the first decision to be made after determining on buying a commercial property. The location and value of investment are directly proportional to each other.


    Since, you are going to put in a lot of your hard earned money into buying real estate in Dubai you need to be cautious too about this aspect predominantly. You need to remember that you can make changes in the interiors of the property but cannot change the location but changes in the value of the location or the amenities available in that particular location is not up to you.


    When selecting the right commercial real estate you also need to look at the facilities and amenities that are provided in that locality. For example if you select a property to start a restaurant, it should be in such a location which has residential properties nearby. Also, if a wholesale market is nearby where you can get the stuff for the various preparations that would be an ideal location. On the other hand if you select a good commercial property in a not so suitable location it would be bad for business. Imagine you opening a restaurant in a location that does not have residential properties. What would be the consequences? You will lose out on business and earn the potential you are capable of.


    The location you choose should also be well connected to the other parts of the city by various means of transportation. This will benefit you as people can easily reach the destination. Also you need to determine if amenities like water and electricity are continuously provided in that area as these are the basic necessities one needs to start a commercial venture.


    You need to keep in mind the growth prospects of that location in the years to come too while selecting the location of the commercial real estate that you plan to buy. The reason for this is if the location rises in value, then in the future your business will grow even further. Subsequently, if you want to sell this purchased property in the future, it will bring you a sizable profit. On the other hand if the location does not rise in value, you might get a loss if you sell the property in the future.


    If as a buyer you want to save money on the property while compromising on the standard of the location, you might benefit at the beginning as you will get the property at a lower cost. In the longer run though, it might not be as beneficial as you expected it to be.

    The factors you need to consider while buying a commercial real estate will be

    • What is the present demand of the location?
    • What are the long term prospects of the location in the years to come. Estimate it as five years from now and ten years from now. 
    • Since you have planned on buying a commercial real estate in Dubai, you must have worked on a certain business type and a business plan. You need to find out about the competing business in that location and the nearby locations. You should be prepared if there is competition nearby. Hence, you should have the proper knowledge of competing businesses in that location. 
    • You need to also assess if your commercial business will bring in potential customers in that location. The more the customers the more the sales resulting in more profit. So, do a proper evaluation of this aspect too. 

    Environmental Assessment


    Nowadays, there are strict rules in respect to environmental factors. You need to select a commercial real estate at a perfect location that suits your needs which has adhered to the environmental factors laid down by the government of Dubai. You need to inquire if the construction on the land on which you are buying the commercial real estate has followed all environmental aspects while building the property. A reputed real estate agency will have all the details in this regard.


    While selecting the perfect commercial real estate property for your business in Dubai, consider all these factors before signing the lease agreement or ownership agreement. Dubai is a wonderful city to start a business. To know different aspects of the city visit DubaiMatic.






    Dubai in itself needs no introduction for people. However, if youare planning for a visit or wondering whether Dubai is the rightplace to set up your business, we are here to help you out withour blogs posts and informative articles. With detailed articles on various aspects of lifestyle, we helpyou to understand what it truly means to live and grow inDubai. Since all work and no play can make any of us sad, we provideyou with lists of things you can do for fun-whether you decideto stay at home, for venture out for adventure.



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