Quote:
Originally Posted by centurygrove
I am looking to buy in the business bay but am not sure. on a recent trip i saw adverts for office space for 1000 aed/sq ft up to 2200 aed sq/ft. How can the difference be so much. Would you consider commercial office space a good investment and what kind of rent do you thick is achievable in early 2009 when some of these projects will be completed.
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You will not get anything in Business bay for 1000 dhs psf. The current prices are between 1900 to 2300 dhs psf. The current rentals are at 250 dhs psf if not more in some areas.
Watch out for gross and nett area. When you see abnormal prices than the prevailing rates, it could be gross area.
Markets are getting hot and will have to correct sometime. Can't expect the prices to go up forever. As long as the supply and demand curves don't intersect thing should be OK. As a investor you should be prepared for corrections.
A 1000 sq ft office is considered good and which would seat around 11 people ( @ the rate of 100 sq per person )
Commercials tend to give a better return both on ROI and rentals. I myself have invested in 2 commpercial properties and they have done well so far. If I was given the choice, I would go for commercial.
As the saying goes "warehouses do not weep". You will not have tenants calling and complaining of a leaking faucets or broken pipes.
Good luck