Smart Investment: Dubai Shopping Mall Sale.

The thing is that when you think of a shop to sell in Dubai, you are not simply purchasing a piece of real estate, you are actually entering one of the most vibrant commercial markets in the planet. 

The strategic location, the fast growing tourism industry, the prosperous expatriate community and the business-friendly conditions provide Dubai with the exclusive retail investment opportunity. No matter where in the world you are, be it in India or not, it is an opportunity worth taking.

The reason why a shopping mall in Dubai is unique to sell.

The retail industry in Dubai is doing well due to a number of reasons. 

• To begin with, the retail outlets demand is also high due to both residents and visitors. Convenience shops, boutique shops, cafe shops and expert shops all have ready customers in their everyday stores.
• Second, the rental rates of retail units usually are higher than the ones of residential ones- and with the appropriate location and tenant, you have a guaranteed revenue in the long run.
• Third, being a foreign investor you get the advantage of transparent ownership systems in approved free-hold areas, and thus, purchasing a shop is a relatively easy task.
• Finally, the international reputation of Dubai as a business centre would imply that your store wouldn’t be restricted to local market only, since it would be exposed to international visitors, global brands and high-traffic areas.

The retail market is anchored on strong business demand.

Dubai hosts millions of tourists every year and tens of thousands of expatriates are considered to be their home. All these combine to form a solid customer base of retail shops. 

An example is high footfall neighbourhoods close to tourist attractions, shopping centres or transportation stations are particularly profitable. With the current economic growth and diversification (not just oil) to other sectors such as tourism, logistics, technological and services, the retail demand has also been more resilient. The result? This underlying demand is what you are enjoying when you are selling a shop in Dubai.

Commercial vs residential high rental yield

The purchase of a retail shop in Dubai gives better returns in most occasions as compared to residential properties. 

• The residential units may experience seasonal changes or even over-supply in some regions.
• The retail units when well-sited and well-rented would generally have long-term tenants. 

That implies a steady stream of rentals, maybe even up to several years, and reduced vacancy packs. To an investor, this is a better cash-flow and predictability. Retail is a brilliant option, in case you are interested in more than appreciation, and need operational revenue.

Foreign buyers made ownership easy

The transparency of ownership and the regulatory environment is also one of the major attractions of purchasing a shop for sale in Dubai. In some areas called freehold zones, foreigners are allowed to buy property and own 100 percent of the property and in most instances, the property tax is zero. 

The Dubai regulatory framework is in such a way as to allow foreign investment. The task of getting through the purchase process is easy and safe with the aid of a specialist adviser (which we will discuss further on).

Best places to get a shop to sell in Dubai

Location is everything. The following are some of the most preferred neighbourhoods where you can locate a retail shop in sale in the city of Dubai:

1.Dubai downtown - retailing traffic center.

Downtown Dubai lies close to such classic sites as the Burj Khalifa and the Dubai Mall; it has a tremendous foot traffic; tourists, locals, and business people. A store in this location has a very high visibility and normally generates high rental and appreciation.

2. Dubai Marina and Jumeirah Beach Residence- lifestyle retail.

This waterfront is an attractive place to the lifestyle seekers and the expatriates and tourists. Cafes, boutiques, wellness studios and lifestyle stores do well. There is a shop to sell in this area that will be placed in both the local and tourist demand.

3.Business Bay - business and service oriented retail.

Business Bay is near large offices, hotels and business traffic, so a shop that serves the professionals in the area like service providers, quick-eat restaurants, convenience retail and niche shops are the best fits. To invest here is to be at the cross of working people and consumerism.

4. Deira and Bur Dubai - heritage trading areas.

They are the older trading areas of Dubai that have a rich trading history, local demand and lower entry entry compared to the premium zones. A retail property that is available in such locations is usually an asset-based investment whereby there will be a steady tenant interest by smaller companies.

5. Jumeirah Village Circle (JVC) - expansion market of community stores.

JVC is a good competitor to investors who are willing to pay a low entry price but have high growth potential. Being a residential community that is very well planned with increasing population and facilities, it is suitable to convenience-based retail, salons, cafes and local-service stores. According to Invesca, JVC provides good returns and development opportunities. 

Varieties of stores to sell in Dubai

In the quest to acquire a shop in the city of Dubai, you are likely to come across four general categories of opportunities:

1. Small Retail Shops

   This is the one that first time investors or those with low budget can purchase. They are usually community-type retail, convenience stores or specialist stores. Reduced cost of purchase, rental revenue.

2. Retail Unit in Malls- 

   These are high exposure, high foot traffic by tourists and shoppers and good branding prospects. Nevertheless, the cost of entry is more expensive and service fee can be increased.

3. Street-Level Shops- 

   These are situated at ground floor in residential areas, and they are suited to daily consumer demand- supermarkets, salons, cafes, local services. They tend to draw long term tenants.

4. Office-Linked Shops -

   These stores are located in business areas like Business Bay or adjacent to office blocks, and are aimed at the corporate market and demand - showrooms, service centres, outlets serving office workers. This type can be of interest to you in case you are also in the process of searching office property in Dubai to buy.

The main advantages of purchasing a shop in Dubai to sell it

• Regular Rental Revenue: Retail tenants usually make long-term commitments which minimizes the risk of vacancy and provides reliable cash-flow.
• Capital Appreciation: The city of Dubai is still enjoying infrastructural development, population increase and business development- which are facilitating long term value increase.
• Portfolio Diversification: In case you already have residential properties, having a retail shop would diversify your portfolio and risk profile of properties.
• Convenience of Running: Shops may be easier to run than residential units (which may be fraught with numerous tenant problems and turnover), and particularly where shops are leased to stable businesses.

Important considerations to make prior to purchasing

• Foot Traffic: The finest retail store may fail as it may be in a low-visibility location. Make sure that there is high pedestrian or vehicular traffic.
• Community Demographics: Be familiar with the type of local residents, i.e., families, young professionals or tourists- this will determine the type of tenant and business feasibility.
• Legal Structure: Check registration with Dubai Land Department (DLD), make sure that it complies with Real Estate Regulatory Agency (RERA) and learn the difference between freehold and leasehold rights.
• Developer / Seller Reputation: Particularly in off-plan or newer commercial developments, track record of check clearing, and financial soundness.
• Future Development Plans: Retail spaces in areas close to future infrastructures (metro, highways) or future projects tend to be more highly appreciated and demanded.

Dubai shopping sale process step-by-step

1. Selection of Property - Use a trusted agent to reduce your list of retail shops to those that are within your budget and investment requirements.
2. Signing of Agreement (MOU) Sign a Memorandum of Understanding with the seller, including important terms (price, payment plan, handover date).
3. Deposit Payment- It is usually approximately 10 percent of purchase price.
4. Registration- Register the property at the Dubai Land Department; pay the fees and make sure that the title is properly transferred.
5. Ownership Transfer - Complete the title deed, and you are already a shop owner.

This is an investor friendly process which is transparent with the help of an expert (e.g. Invesca).

The reason why the shops in Dubai can be considered a safe long-term investment

1. Business-Friendly Policies: Dubai is open to foreign investment, provides freehold zones, and does not have property tax.
2. Large Visitation Rates: Retail demand is not only sustained by the residents but also by the tourists who bring in millions of tourists annually.
3. Global Business Hub: Multinationals, startups and expats still choose to locate themselves to Dubai- aiding service retail, food and beverage as well as specialty stores.
4. Infrastructure Development and Future Prospects: Commercial real estate continues to be in demand due to ongoing master plans, new transportation connections and major events. According to Invesca, the Dubai property market is resilient and is set to be in the future. 

The power of Invesca Real Estate to your shop investment

At Invesca Real Estate , it is easy to state the mission, which is the ability to make your property dream a reality. 

They say: Invesca Real Estate, we are determined to assist you in searching the perfect property, be it a house, a business investment, or a business place to expand your business. 

Why should Invesca be the partner?

• Certified, Licensed, RERA Agents: Invesca is highly professional, ethical, and knowledgeable about the market, as explained.
• Freehold Listing Only: They have residential and commercial properties with access to both residential and retail units in strategic places in Dubai.
• Wholesale to Retail: They take you through the process of property search, legal documents, and registration with DLD.
• Retail and Commercial Property Knowledge: Unlike most of the agences that deal solely with homes, Invesca is not hesitant to mention commercial spaces in their services. 

Basically, by collaborating with Invesca in investing in your shop, you are dealing with a reputed and seasoned team that knows the retail property dynamics in Dubai and can help you in achieving success.

Last considerations - convert your store buy into success

It is not only a matter of purchasing bricks and mortar, but a future source of income, being a part of the story of the development of one of the global cities and a diversified portfolio. The opportunity is attractive with the robust business demand, favourable legal environment, tourism drivers and professional assistance of the firms such as Invesca. 

Ready to explore?  Contact Invesca Real Estate now, and find out the retail units with the greatest potential, invest with confidence, and take up your niche in one of the most dynamic commercial real-estate markets in the world.

Frequently Asked Questions (FAQs)

Q.1 Is it possible to sell a shop in Dubai to the foreigners?

Yes. Foreign investors are allowed to purchase commercial retail units in specified freehold zones in Dubai and have complete ownership.

Q.2 What are the rental returns that I will make on a shop in Dubai?

The yields depend on location and type of tenants, but retail property can be a better yield than residential property because of consistent business tenant agreements and heavy pedestrian traffic.

Q.3 How much money is required to purchase a shop to sell in Dubai?

It is based on size, location and type of property. Lower entry points could be provided by smaller community-level stores in growth areas than prime-mall units.

Q.4 What is the significance of the location when purchasing retail shop in Dubai?

Extremely important. The visible area, pedestrian traffic, accessibility and the community population structure have direct bearing on the demand and value increase of rental properties.

Q.5 What are the supports that Invesca Real Estate provides in the purchase of a shop?

Invesca offers market research, unique placements, negotiation, legal and registration services with Dubai Land Department and complete assistance during the process.

Q.6 What are the risks that I need to know when investing in a shop in Dubai?

The risks are leasing to untrustworthy tenants, selecting a low-footfall location, underestimating the service charges or not considering future infrastructure plans. The risks can be reduced by hiring professional advisors.

Q.7 Is it time to purchase a shop in Dubai?

With the current infrastructure development in Dubai, high tourism and business attractiveness as indicated by market survey by Invesca and others, the current opportunities offered by retail shops with long-term potential are very enticing.