The secret to making any successful investment is good timing. If you are planning to invest in Dubai’s commercial real estate market, make sure it is the right time to do so. Much like any other investment vehicle, real estate goes through its ups and downs as well. However, according to the top commercial real estate companies in Dubai, a market downturn does not necessarily mean you should avoid investing at this time. Real estate prices tend to go down during downturns. Investing during such a phase may set you up for making big profits down the road. All you have to do is find that sweet spot when the market is starting to rise. Below are a few other tips that should help you figure out if it is the right time to invest.
Study the market closely:
As the commercial real estate companies in Dubai will tell you, commercial real estate varies by market, submarket and type. The industrial property sector has seen its fair share of growth because of the direct-to-consumer shift. Because of this, the demand for regional warehouses has increased. More and more people are shopping online, which is why the number of regional malls are also decreasing. The market is constantly evolving, which is why you need to study it carefully. You should also pay attention to the migration patterns that can create vacancy in some areas and demand in others.
Buy when you can afford to:
You should only buy a property when you can afford to. You do not need to wait for a downturn to get a “steal.” If you have the finances to buy right now, you should go ahead. On the other hand, if you cannot afford it, you should wait even if it feels like the ideal time to invest. Just because a down market is beneficial for some does not mean it is the same for everyone.
Partner with a commercial real estate agent:
The support and guidance offered by commercial property estate agents Dubai can prove to be invaluable to you. An economic downturn affects the commercial real estate sector differently. That is why you should partner with a professional who has a vast knowledge of the real estate market of a specific region as well as the commercial sectors and economic patterns. Only a commercial real estate professional can help you find and analyze the data required to leverage the market conditions.
Find a local expert:
When partnering with commercial property estate agents Dubai, you should always choose a local expert. They are the ones who have the appropriate knowledge and experience to help you. Having observed the market fluctuations for years, they are in the best position to give you advice. A local expert will be able to tell you which areas have the highest potential for growth and are ideal for investing.
Pay attention to the economy and demographics:
A close look at the local demographic and economy should help you determine whether or not it is the right time to invest. The commercial real estate companies in Dubai can help you make a solid hypothesis based on data and stats. However, you can do your research and offer input as well. For starters, you can check out similar properties and find out if the market for them is shrinking or growing. Secondly, you need to check the employment rate in the area. The factors will play a critical role in your decision-making process.
Look for sustainable and consistent city growth:
Consistent and sustainable growth are great indicators that tell you which locations are ideal for investing. As the commercial property estate agents Dubai will tell, the city is always growing and evolving. A major chunk of the city’s economy relies on real estate. That means there is always something exciting happening in this sector. New developments are taking place every year, and there are great investment opportunities everywhere.
Identify and evaluate your goals and objectives:
Investing in commercial real estate without a clear and strategic objective can be a serious mistake. For example, let’s say your original plan was to invest in a retail shopping mall, but your research and market analysis show that a warehouse space that supports home deliveries would be a better investment. In this scenario, changing your objective would be the obvious choice. If you do not have a strategic goal that is backed by data, the commercial real estate companies in Dubai can help you with that.
Prioritize flexibility and reuse:
The reliable and experienced commercial property estate agents Dubai will always advise you to focus on flexibility and reuse, two qualities that make a commercial property ideal. That is because whenever the market experiences a downturn, one or more commercial sectors get hit the hardest. For example, the downturn caused by the COVID-19 pandemic has affected commercial real estate involving retail and office space the most. If you can find a property that can be repurposed and reused to meet the need of the hour, you will win regardless of the effects of the market downturn.
Find the best commercial property estate agents Dubai at RiseUp
So far, we have looked at all the ways you can determine whether or not it is the right time to invest in commercial real estate. However, regardless of what you decide, one thing is for sure – you need the help and guidance of commercial real estate companies in Dubai to make sound decisions. RiseUp is one of top real estate companies in the UAE. With years of experience in the commercial real estate sector, the agents at RiseUp are best suited to work with you on your investment journey.
Besides agents who can help you find the right properties, RiseUp also has reliable investment advisors and a highly efficient legal team to back you up every step of the way. If you are wondering about how they can help you invest in commercial real estate in Dubai, get in touch with them today!