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This week, Dubai hosted the biggest and most influential real estate event in the Middle-East, Cityscape. The event is designed so that industry professionals can network and learn from each other, through talks, panels and exhibitions. Despite being held in the middle of a pandemic, the event was carried out successfully and safely, with strict social distancing rules put into place. This included employing social distancing ambassadors who ensured participants adhered to the rules, enhanced cleaning of all areas, non-contact registrations. This stringent safety measures put in place shows that events like this, whilst very different from what they were like pre-pandemic, can still be held. The director of CRC, Ben Bargh, was part of a panel at Cityscape, discussing the new reality of the commercial property market. Despite a turbulent 2020, the commercial real estate market will survive, thanks to an increasing amount of importance being placed on 360-degree digital portals and building management. Due to the circumstances brought about by the lockdown, real estate companies have been forced to turn to digital solutions to show off their properties. More companies are moving towards a multichannel approach and expanding their online marketing. Rather than traditional brick-and-mortar estate agents, companies are adopting online marketing campaigns, boosting their SEO, and using social media, which keeps in line with the digital mindset that is becoming an expectation for modern brands. As technology moves forward, real estate companies are also looking to better, more advanced property portals, such as Houza, which offers an optimal user experience in searching for properties in Dubai, especially when it comes to bringing the property to life online. Behnam Bargh, Director at CRC, echoed similar thoughts, as he said the first impression of a commercial property for a client is looking at the picture of the property. In that sense, portals become very important in a customer’s journey when looking for an office, retail space or warehouse. This is especially the case now that we have seen a shift in people searching for properties on their desktop to their phones. Whilst nobody expected for the market to depend on technology as much as we have, it is something that we need to take in our stride, allowing for commercial real estate companies to develop a more rounded marketing effort as we head into the New Year.    

Whether you are setting up a new business in Dubai or looking for somewhere better to locate your company, careful considerations should be made about the commercial property you will need. We put together some of the top tips and the different things to think about when looking for a commercial property to lease.Consider what licenses are requiredMany different considerations need to be made before determining what trade licenses are required. If the office is based in a free-zone, then the company will need to apply for a Free-Zone License. Whilst this means that an expat is able to retain 100% ownership of the company, it is important to note that companies in free-zones are unable to trade directly with the local market without the help of a local agent. Businesses that are offering a service can apply for a Professional Services license.Companies operating under this license can retain 100% ownership, whilst outside of a free-zone, however, the company will need a local agent in order to serve, who will command a fee. The third type of licence a company can go for is an LLC licence. This allows a company to operate anywhere with any kind of service, providing there is a 51% ownership of the company by a local partner. Before deciding on what and where you want to rent, it is therefore important to decide on how your business will operate and what licences will be needed. Finding out what license you need will help narrow down where your business can operate, especially since certain activities can only be done in certain areas under a specific licence.If the company is new, then initial trade name certificates and initial trade approval will need to be obtained. Once all of this is done, then both parties can proceed, and the tenant can move into their new workplace. Make sure the office suits company’s needsNaturally, it is crucial to consider the growth expectations of the business. Depending on the size of your office space, you will be eligible for a certain number of visas for your workforce. There are several different types of commercial properties, depending on the purpose, such as warehouses, offices, and retail units. Therefore companies should also consider the kind of commercial property that is most suitable for them. For example, if they just need a warehouse, is there a separate office space for managers to work? Another consideration that should be made is if you will opt for a fully-fitted office, or a shell and core. Whilst shell and core properties are generally cheaper; the business will be required to use a fit-out company. Another benefit of shell and core is that it enables the company to make their office suit their specific needs. That being said, a company would need to check the permissions they have for their unit. Companies will need to check with the landlord if they are able to fit inside toilets, pantries, or other significant work for the unit. Companies should be aware that fitting can be expensive, so in the long run, both options should be considered. Fitted offices are more expensive, they are often move-in ready, which can be more efficient and save the company time. It is important to see if the property is in a suitable condition and if any work needs to be done prior to moving in.Finally, it is not just the office itself that should be considered, but also the surrounding community. Before deciding on a property, it is essential to consider the needs of the employees. Employees may need to use public transport to get to work, so finding an office that is close to a metro station and/or bus stop would be significant. If your employee’s drive, is there parking available nearby? Another thing that might be considered is what your employees will do for lunch. Is there a pantry in the office, if not, is there a supermarket or food outlets nearby. An office space may be perfect, but could also be highly impractical if it is not close to any restaurants, stores, and other amenities your employees might require. Go with an expert brokerNavigating the property market can be daunting. That is why it is best to go with an expert who will be able to advise you on the property that will suit your company best. An expert broker will be able to give you informed advice about each area, as well as be able to use their expert knowledge to broker you the best deal possible.  It is always best to go to an area specialist who has experience with specific locations and will be able to provide all of the necessary information required before moving into the commercial property.  

The coronavirus pandemic has undoubtedly caused a shift in the way we live and work. It has also caused major concerns regarding the safety of employees in shared office spaces, which have the potential for the virus to spread across a company. That being said, companies need to take on increased responsibility and take certain precautions and measures to help mitigate the spread of the virus and make their office spaces as safe as possible during the pandemic. Here are some tips and advice on helping make your employees feel confident and secure working in the office. Support your workers These are definitely some unprecedented times that we are currently experiencing, with everyone facing new struggles and difficulties. That is why it is so important to be extra compassionate and flexible with our employees and fellow co-workers. If you are implementing work-from-home, there should be consistent communication between employees and employers. With reduced or lack of face-to-face interaction, it can be hard to keep in constant contact with each other. Therefore a deliberate effort in making phone/video calls and daily check-ins should be made. You should also support your employees in a practical sense. Have a box of masks handy for each employee, as well as plenty of hand sanitizer available. You might also want to consider giving your employees a COVID-19 safety kit. This might include a pack of facemasks, hand sanitizer, pack of disinfectant wipes, and a leaflet on safety measures and precautions, as well as any rules that the office might have in place.Clean, clean, and clean some more!This is probably the most important thing you can do!  Ensure you are constantly washing your hands, keep a bottle of hand sanitizer at your desk, and clean any workspace you come in contact with. Make sure to cover your mouth with your elbow or a tissue when you need to cough or sneeze instead of using your hands. Wash your hands thoroughly with soap and water for at least 20 seconds regularly throughout the day, especially after touching any public surface or being in a communal office area, such as a shared kitchen or conference room. It should also be remembered  to disinfect high-touch surfaces daily in common areas (e.g. tables, hard-backed chairs, doorknobs, light switches, phone receivers and keypads, remotes, handles, touchscreens, desks, toilets, sinks, elevator, and elevator buttonsThere should also be a thorough daily office clean, which involves properly disinfecting every surface. Employees should also be encouraged to thoroughly wipe down their own desk and work area when leaving, especially if your office practices flexible seating with no set seating plan. Employees should remember that to properly disinfect something, they should clean only one item at a time, using enough wipes to ensure the surface stays wet for 4 minutes. Keep your distance and embrace technology In order to stick to the social distancing guidelines, employees should always keep between 6ft or 2 meters apart at all times. This, however, can be difficult within an office setting, especially if meetings need to be conducted and desks are already set up. Therefore, face-to-face contact should be kept to an absolute minimum. With modern technology, meetings and conferences no longer need to be in person. Companies should try and avoid unnecessary face to face contact by encouraging virtual zoom meetings. This also means there is less need for employees to come into the office every day. Therefore companies might want to consider staggering work times implementing reduced capacity in offices. This might mean encouraging working from home, with half the workers to come in one day and the other half the next. If a company is going through with reduced capacity, companies might also want to consider creating a new office floor plan. In creating a new plan, certain desks might need to be put out of use, ensuring a sizable gap between each worker.  That way employees can have their own space without the need to share desks. If at all possible, install touch-reducing amenities. This might be double swinging doors that can be opened with a shoulder/foot, motion sensor lights, or hands-free signing in/out machine. This will reduce the number of surfaces that employees will have to touch. Companies should also limit the guests that come into the office to an absolute minimum. This applies to both guests who will be coming in for meetings, as well as people delivering items into the office. Discourage employees from ordering food or receiving personal packages into the office. The fewer people that come into the office, the less likely the chance of spreading the virus. Communal spaces This is an area where the virus is most likely to spread between. Rather than using reusable mugs, cutlery and plates, use single-use. This will reduce the chance of the virus spreading when your employees are on their lunch and coffee breaks. Make sure to regularly wipe down and disinfect communal areas, and limit the number of people that can enter at one time so to ensure everyone can maintain social distancing.  Communication is key Make sure all of your employees are kept up to date on all the latest updates. This might involve sending a weekly newsletter letting employees know all the latest information in regards to COVID-19 and to reinforce any rules put in place to reduce the spread of the virus.Visible signage around the office should be put up that will raise awareness about how employees can ensure their safety. This might include information on good respiratory hygiene, cleaning recommendations, social distancing guidelines, and symptom checks, as well as information on what employees should do in the event that they start showing symptoms. You should encourage regular COVID checks, and if anyone is unlucky enough to contract the virus, employees should know the correct procedure that they should follow. This would include the infected person and anyone who had contact to self-isolate until they receive a negative test result. Companies may also want to create a platform where employees can communicate and raise their concerns, and be more flexible and accommodating in regards to their personal circumstances and needs. We understand that employees may have concerns for their safety when working from an office space, with concerns over contracting the virus. That being said, we hope that these tips and advice will help encourage employees to feel more confident about working in a shared environment again.   

The current pandemic has meant that there have been massive changes in the way we work. The biggest change is the increasing trend in working from home.  Safety concerns and government regulations have meant that now more than ever, employees are being told to work from home.  This new working style has brought some welcome benefits, or ‘home comforts’. Casual clothing, even pyjamas, can be worn every day and during breaks, employees can just veg out on the sofa. Employees are afforded the opportunity to work in an environment that suits just them. It has suddenly given workers flexibility and freedom that has not been afforded before in the same way.Whilst it might be nice to get a bit of respite from the office, a study by The Khaleej Times found that UAE residents are struggling with some aspects of these measures, such as feelings of being disconnected, lack of opportunities to learn from colleagues and in some cases, an increase in workload. There is also the problem that for many people right now, working from home measures means that there is no distinction from work-home life and therefore turns the home into work. There is no escaping it. That is why, keeping in mind the benefits of working from home, it might be time for managers and business owners to make some much-needed changes to the working environment.When offices do finally decide to open again fully, it is important that managers and business owners take into account everything that has happened in this year and to learn from both the enjoyment and grievances that employees have in regards to working from home. That is why, after bringing the office into our homes, it might be time to consider doing it the other way around. Whilst no-one is saying that employees should suddenly start coming to work in their pyjamas and lounge around in the office all day, the experiences of working from home have certainly started conversations and new ways of thinking about how we see office spaces. We spend so much of our time in the office, that it is perhaps time we start making it a place that we genuinely enjoy going to, a sentiment echoed by Betterhomes Managing Director, Richard Waind, who claims “the office of the future needs to be more than just a place to work. It will need to entice workers back with some of the comforts of home and create spaces that are truly collaborative”. If the problems that people are having with working from home are anything to go by, people are longing for more collaborative environments. The days of individual, isolating office cubicles are over. With falling office prices, now is absolutely the time to invest in offices that have shared spaces that really encourage collaborative working. Companies can even afford bigger offices that have bigger break rooms, and entertaining spaces, in order to transform them into comforting and relaxing spaces. At the end of the day, the office is supposed to be for the employees. Find out what they want. Allow them to bring their home into the office, encourage photos, and plants. Invest in some comfy chairs for the break room. Ask them about how the office can be a more lively, and enjoyable place, which in turn will create a great company culture.  

There are currently many available commercial options on the market, but how can you make your property stand out from the rest? We have provided some industry tips which can improve your asset and make it more attractive to potential investors.MAINTENANCEEnsure your property is well maintained. The asset should be visually appealing, with a well-maintained interior and exterior. Those first impressions can be critical even when it comes to securing a viewing. Minor improvements such as painting and deep cleaning can be very effective with small capital expenditures.SUSTAINABLE IMPROVEMENTS  Making environmentally conciseness improvements can increase the value of the property by reducing operational costs. The changes can be as simple as insulating the property and switching to efficient light bulbs. Many governing bodies will also provide grants to help with larger capital outlays such as solar panels. If you are looking to attract large companies, keep in mind that many have corporate social responsibilities, and will only occupy energy approved assets. KNOW THE MARKET  Research the market and find asking and sale prices of similar assets. This will give you an advantage in the sale negotiation stages. If you’re looking for a quick sale, ensure the property is listed at the market asking price. Many investors will use a property search engine and filter the price ranges if the asking price is too high; your asset will not appear within the search.KNOW YOUR PROPERTYIf you own a commercial building be aware of what type of tenants will be able to occupy your building, for example, which license they hold and if their business operation is approved. Gain as many government approvals as possible in order to accommodate as many tenants as possible.HIGH OCCUPANCY RATEHaving a high occupancy rate will make your property more attractive to an investor. This can be achieved through leasing units at the current market rate, securing tenants with good covenant strengths, longer lease terms, good unit mixes and effectively using the available sq.ft area.EXPERIENCED BROKER  Use an experienced brokerage that will give your property the exposure to the market that is deserved. A good real estate company will have a database of potential investors and will also have a planned marketing strategy tailored to your requirements.  

As our norms and routines significantly change towards a “new normal”, that is yet to be defined, many questions and concerns have arisen for the individual, both professionally and socially. With the social and sectorial restriction in place in the UAE, companies, and businesses have had to act quickly to ensure the health and safety of their staff, while implementing new operational strategies and approaches to allow business continuation. Inevitably these changes have had a material impact on cash flows, with liquidity pressures rapidly increasing. These challenges have created uncertainty within the real estate sector, although there are still deals coming to fruition, many acquisitions, disposals, and developments are now on hold. Sales volumes, as a result, have significantly slowed with forecasts predicting the may drop to the levels of the 2008 market. In the malls’ segment, groups such as Al Futtaim are putting in place a range of initiatives, including rent holidays and rent relief funds to help their tenants. However, with no clear indication from the government around when policies will be relaxed and the UAE economy re-opened, many businesses may require further support in order to weather this unprecedented storm.It is still unclear if there has been any significant change in property prices as transactional data and price discovery within the first quarter is still limited. If we look east to markets that are further along the curve of this pandemic, markets in Asia are beginning to lift restrictions. These markets have sustained a significant slow-down in market growth, they have also had to withstand second waves of viral outbreaks, Hong Kong and Singapore being the prime examples. However, as they look to re-start their real estate markets it is imperative that the UAE learns from the best-practices they establish and the mistakes they make over the coming weeks and months. The real estate market presents many challenges to restart safely; strong reliance on close contact between customers and professionals create challenges for remote-work and make the sector difficult to safeguard. The sector also relies on consumer confidence which as previous market shocks have demonstrated is difficult to overcome quickly. The UAE will learn from the protocols put in place in Asian markets as well as globally, where leading economies are creating “back-to-work” frameworks and protocols that are sector-specific. Looking forward, it is challenging to predict when regional and global markets will return to pre-virus levels, however, comparing to historic viruses such as SARS, we saw a “V” shaped recovery, with temporary and short-term impact. COVID 19 has had a much wider global impact, for example Asian markets rely heavily on buyers from the west, this global connectedness is likely to make the impact of this shock more sustained, so a “U” shaped recovery is more realistic, with some lasting economic effects. CRC has seen asset classes with high levels of social interaction hit the hardest, such as malls, retailers, restaurants and hotels. In contrast to this, sectors such as industrial and logistics facilities have been more resilient, where many consumers have continued to move to online shopping with the UAE government classifying many supply chains under these classes as “essential” to serve the public. We have also seen different approaches from investors within the market, many are looking to mitigate and consolidate risks in their existing portfolios, while those with cash available are seeking to capitalize on the drop in prices and making discounted investments. The majority of investors will look to survive the next 3 months and wait for real data to emerge on the true extent of the damage to the market, prior to making any acquisitions or disposals. It is also likely that landlords will see amendments to future lease terms, to cater for potential similar global shocks including future pandemics, with tenants becoming more savvy and negotiating for more lenient break clauses.       Once all restrictions on movement and work are lifted it is unlikely we will go back to the “old normal”, rather a “new normal” will define how we assess and occupy real estate. For example, many office occupiers previously opted for open plan environments and may now shift to contained areas, to separate staff. The UAE Government could review laws that outline the number of staff per sq.ft, the required distancing between desk space and air conditioning/airflow requirements, to name a few examples.  During this crisis, many businesses have also migrated to remote working and increasingly deployed technological solutions to empower their staff to work from home. These new approaches may better suit company operations and staff in many sectors, and in turn, this may lead companies to down-size, right-size or in some cases move to a fully remote model, this “physical” office may increasingly become part of the “old normal”. In the longer-term, co-working and flexible-working spaces could become more prevalent, albeit with new government policies place.For manufacturing and logistics, businesses disruptions to supply chains and businesses with reliance on international imports have seen inventory levels drop which has led to local sourcing. These newly built relationships may indicate potential deglobalisation of supply chains to mitigate risk and improve corporate responsibility in relation to sustainability. Robotics and automation may become more established, with more reliance upon e-commerce and reducing human interaction. This drive could result in larger e-commerce players to invest in upgrading and develop their existing facilities. For further information and insights from our Valuation and Investments teams please visit crcproperty.comOur Valuation department is still fully operational, offering valuations on a desktop basis subject to deferred inspections.     Joe Titchner MRICSHead of Valuations  

Legal experts largely agree that the new UAE Bankruptcy Law is an improvement on the previous law, but is it all good news for debtors and creditors?What is the UAE Bankruptcy Law?The Federal Decree Law No. 9 of 2016 (UAE Bankruptcy Law) provides a framework for companies in financial distress to avoid liquidation and protects employees, shareholders and directors of organisations going through court-led insolvencies. It contains 230 articles and primarily works to bring flexibility to those going through financial difficulty, providing more support for both debtors and creditors. Since its implementation on December 29th, 2016, it has removed the risk of facing legal prosecution and jail time, and special tribunals are no longer required for the insolvencies of large companies.Who does the UAE Bankruptcy Law affect?The UAE Bankruptcy Law applies to commercial companies, companies owned by the UAE or any Emirate’s government, individual traders and civil companies established in the UAE. It excludes companies established in the financial free zones and non-trader individuals, who will remain subject to the UAE Civil Code in the event of financial distress and who will therefore continue to be at risk of legal prosecution.What are the key changes implemented by the UAE Bankruptcy Law?The law is centred around the implementation of four new court-supervised procedures:The preventive compositionA process for solvent debtors who are facing financial difficulties. Only a debtor may apply for this and it should be initiated at the early stages of difficulty before insolvency, to protect the debtor and provide more time and support to fulfil the debt with the court’s supervision. The unsecured creditors must approve this within three years of the court’s approval and it may be extended by three years.The restructuring processFor an insolvent debtor facing financial difficulties that have led to failure to meet debts for 30 working days or more. This can be initiated by the debtor or by unsecured creditors who have issued a formal demand for a debt of Dh100,00 that is overdue by 30 working days or more. The debtor is allowed five years for restructuring the debts and this may be extended by three years.Insolvent liquidation processTo be initiated by the order of the court, for the debtor to cease commercial activity if the previous two options are unsuccessful or are not approved. The court will appoint an insolvency trustee or official to oversee the process and monetise the debtor’s assets.Financial restructuring of financial institutionsThis may be initiated following preventative composition or restructuring and includes safeguards for existing secured creditors.Accordingly, greater flexibility is available for debtors and creditors. For the first time courts can amend loan terms and debtors can apply for support from the court during financial difficulties, which can potentially provide three to six years of protection and support. The UAE Bankruptcy Law provides more options for debtors in the UAE and this in turn brings greater protection of the debtor’s business, and of the creditor’s assets.  It creates more security and predictability and can help to prevent financial problems from growing and becoming unmanageable whilst there is still potential to fulfil the debts owed. To encourage debtors to apply for rehabilitation when facing financial issues, the law states that once the court accepts the application, all other claims and proceedings are suspended until approval. This is to encourage restructuring finances rather than leaving the creditor without their owed debts, but it means that existing debts are suspended, bringing risk of alternative liability.What are the implications for debtors?The UAE Bankruptcy Law helps to support debtors’ businesses maintain viability and aims to protect them during a restructuring. It can also protect Directors and Managers from arrest or being forced to flee the country as a result of their company’s debt. However, it’s important to note that the removal of the criminal offence of bankruptcy does not remove the criminal offence of fraudulent bankruptcy or any breach of the Commercial Companies Law. It is clear that using the UAE Bankruptcy Law as protection from such a breach will render the individual exempt from protection. This will lead to the member being held personally accountable for the debts and damage.Criminal proceedings regarding bounced cheques are suspended once a preventive composition or restructuring process has begun, which can help debtors maintain viability, although misuse of this protection can be a fraudulent insolvency offence. The UAE Bankruptcy Law states that members involved in the liquidation of the company are accountable for a Dh1 million fine and up to five years in prison if found guilty of altering records to harm the creditors, embezzlement, acknowledging unpayable debts, deceiving the court in their application for any of the processes in the UAE Bankruptcy Law, or sharing false information about the capital.It is important to consider the time frames enforced for new processes in the UAE Bankruptcy Law. There are time frames for approvals, appeals, and initiating processes that must be observed to maintain protection. For example if the debtor does not apply for bankruptcy within the thirty working day window of failing repayment, the liability can shift to the members and Directors and can leave them personally liable for mismanagement. A preventive composition is not available to a debtor that has already entered into the procedure in the past year and cannot be used by a debtor for which bankruptcy proceedings have initiated, so both processes should be carefully considered. It appears the best advice is to be prepared, act quickly and seek help at the first signs of difficulty to maintain business integrity and protection from greater difficulty further down the line.For debtors, the UAE Bankruptcy Law provides some leeway, but does not relieve the requirement to fix the debts owed and depends upon the handling of the court and the court appointed officials as to how effective a strategy it can be. Applications require preparation and time to complete and therefore it is necessary to undertake a risk analysis and keep the preparation process in mind when considering the time frames. The plan for preventive composition must be effectively prepared as, once agreed and in process, failure to comply can result in the court ordering for bankruptcy or liquidation. In addition to this, the debtor must have funds to cover the cost of the procedure and approval is required from shareholders.What are the implications for creditors?The UAE Bankruptcy Law appears to offer a debtor-centric approach but creditors also benefit from more security and legal rights than before. Creditor initiated insolvency proceedings will be useful in protecting assets and the removal of the criminal offence and more options to debtors means more likelihood that debts will be cleared rather than absconded from. Research by the World Bank has shown that insolvency processes in other countries have up to nearly 60% higher recovery rates than the UAE, so this is a much needed improvement for UAE creditors. As a result, the UAE also becomes more attractive to international investors and businesses and benefits the economy as a whole.Secured creditors are prioritised by the UAE Bankruptcy Law, and again must consider enforced time frames. Secure creditors require court approval to claim against the trustee regarding their secure assets. The court’s decision will be published by the trustee, then creditors have a window of 20 working days to bring their claims. Following publication the debtor has 45 working days to submit an initial preventive composition plan for a vote of approval by unsecured creditors. This gives unsecured creditors an understanding of timings and proposed chances of success, but to vote their debts must be accepted by the court and a majority vote requires at least two thirds relating to the value of the debt. After this the unsecured creditors, regardless of whether they voted, are bound to the agreement. This process appears to favour larger investors and may encourage more investment, but could discourage smaller investors from becoming involved initially.Whilst the debtor continues to run the business, the court-appointed trustee has rights to act for the debtor to preserve the assets needed to complete the process. Any activity that could impact the position of secured creditors must be approved by the court and the court may order for liquidation of the debtor’s assets if they do not comply with the agreed terms of the preventive composition.In summary, the law provides much more transparency and more confidence and predictability for creditors.Outlook and future developmentsThe UAE Bankruptcy Law aims to improve the business environment and economy by offering debtors more opportunity to resolve debt without facing liquidation and prison. Investors can invest more knowledgeably and confidently, and those seeking investment will have better access and support to avoid liquidation. This should influence a further rise in investments and business growth in the UAE, particularly for entrepreneurs and SMEs.Further encouragement to debtors to seek support early on in their financial decline may help to prevent bankruptcy, however, it does not necessarily stop debtors fleeing the country to escape criminal sentencing in fraudulent cases. This also relies on debtors being financially aware and knowing their rights early on in, or before their decline.Whilst greater co-operation is possible between debtor and creditors, the processes are managed by courts and court appointed officials. Given its recent implementation, it is too early to know how successfully issues will be managed which creates uncertainty. It will work on a case by case basis and relies on there being an experienced talent pool with knowledge of the relevant industries. Experience and understanding of the issues and outcomes will come with time and there is no doubt opportunity for the law to evolve. Larger more structurally diverse companies may complicate the process and we are yet to see how these instances will pan out, but the new law looks like a step in the direction of a smoother, slicker business environment with more international appeal.  

“Would it be smarter to rent a commercial property than purchasing it?” – it is a question everyone who decides to open a business in Dubai asks themselves at some point.As an international trading hub, Dubai caters to all types of business ventures. Brimming with well-equipped state-of-the-art office spaces, Dubai offers numerous choices for those planning to expand their business activities in the Middle East.When choosing the ideal commercial property to establish a business, the entrepreneurs should essentially consider the primary business activities of the enterprise. Dubai has multiple Free Trade Zones that help entrepreneurs establish and manage a business quite easily.It should be noted that commercial property in the UAE is divided into several types according to the types of businesses. For instance, professional office space cannot be used for a retail business.Deciding whether to purchase or lease a commercial property should primarily depend on the business type and the financial conditions of the entrepreneurs. Before finalizing the documents, the entrepreneurs must ensure that all the required documents including proof of ownership, compliance of the commercial property with the current plans, the status of the premises, and the necessary permits to occupy the property are available. However, these requirements might change according to the specific businesses and the location of the commercial property in Dubai.Below we outline some of the fundamental aspects of leasing and owning commercial property as well as their possible advantages and disadvantages. Read on to find out the pros and cons of leasing and owning commercial property in Dubai.PROS OF LEASING A COMMERCIAL PROPERTYPurchasing a Property Requires LiquidityLeasing requires a less amount of cash when compared to purchasing a commercial property. Leasing a commercial property rather than purchasing one leaves the investors with more capital to invest in other business operating costs.Leasing is Attractive for FinancingMany small-scale or marginally profitable firms may find traditional financing sources like purchasing a commercial property rather expensive and difficult to attain. It is why leasing can be seen as an attractive source of financing. The cost of leasing usually falls below the cost of ownership and a landlord might be eager to sign a simple lease than transferring ownership.Leasing Offers Stable and Predictable CostsUnlike with ownership, leasing costs are easier to forecast when preparing a budget. Although some leases may end up costing several minor capital expenses to the buyer, most commercial lease structures out there help the buyer sidestep these unpredictable expenses like mechanical system replacement costs, structural repairs or random expenses like replacing the roof of the parking lot.Leasing Looks Good for the Tax BenefitsThe occupancy costs of leasing are fully deductible from the insurance. The owner of the property is supposed to depreciate the increase in the costs of the property. However, they cannot depreciate the value of the land.Leasing is FlexibleA lease agreement comes with an expiration date where the buyers can re-evaluate their commercial property requirements. A leasing agreement also lets a lessee decide whether they wish to expand their business activities or relocate.A Property at a Prime LocationCommercial property at prime locations across Dubai may already have been purchased. On the other hand, the available properties for purchase might be located away from the central locations in Dubai. Leasing allows the buyer to establish their business in a prime location in Dubai.Focus on The Important ThingsAs with any other investment, purchasing a commercial property comes with multiple risks. These could include a decrease of the property value due to economic and market conditions, financing risks and unforeseen expenses related to maintenance and repair.Leasing a property allows the tenants to focus on their primary business and not just its maintenance. Issues with property management can set the owner’s business back by several months. CONS OF LEASING A COMMERCIAL PROPERTYControl of The PropertyWhen leasing commercial property, the bitter truth is that the tenants have little to none control of the property that they are leasing. Due to the lack of control, these tenants may even be affected by parking restrictions, operational hours, the compatibility and the use of the commercial property.On the other hand, securing the ownership of a commercial property can allow its owner to make decisions without a hassle or anyone’s interference.No Appreciation of The Property or Equity AccumulationThose who choose to lease instead of purchasing a commercial property do not have the opportunity to yield profits of the property value appreciation. Additionally, tenants of the property are not given the chance to yield any type of equity accumulation by reducing the property’s underlying financing.That being said, purchasing a commercial property allows its owner to enjoy the profits of any asset value appreciation. Also, under an amortizing loan, the owner can also accumulate equity in the commercial property as the mortgage principal is paid off.Leasing is more expensive than you think!At a glance, the instalments for the leased property might look comparatively lesser compared to purchasing a property. However, at the end of the lease period, it could end up costing the tenants more than purchasing the commercial property.Contractual Obligations of LeasingEven though the business based at the leased commercial property faces losses, becomes less desirable or lacks liquidation, the tenants are obligated to pay the rent for the property. These contractual obligations come along with the leasing process and cannot be evaded even if the tenant does not have the financial capability to pay the rental obligations. In fact, the tenant will be charged with penalties if they missed out on their payments for the commercial property.The Decreasing Salvage Value of The PropertyWhen managing a commercial property on lease, it is natural to expect repairs and modifications in the business space. However, this also means that any modifications done to the property will eventually be handed over to the owner of the property at the end of the lease period. Alternatively, the owner of the commercial property might require the tenant to remove all the modifications done during the leasing period.PROS OF PURCHASING A COMMERCIAL PROPERTYEnjoy the Appreciation of The Property as an OwnerAll in all, the real estate industry in Dubai has been enjoying a steady boom. Even after the toughest of the economic conditions, Dubai has been able to recover its real estate market to its former prestige.A tenant is not able to enjoy the appreciation of the property value. The owner of the property will instead be enjoyed by the owner of the commercial property. Although the value of the property may fluctuate over the years, once the total value of the commercial property improves and/or stabilizes, the owner can yield the added property value by putting the property back on the market.The Property Could Pay For Itself!Just because you own a commercial property does not mean that you have to occupy it all by yourself. Commercial property can be used as a mode of income to those who can afford to allocate some space to a tenant for a leasing agreement. This will provide the owner with an additional source of income which can be used to pay the mortgage, invest or even distribute.Property Ownership Attracts Tax BenefitsOwnership of commercial property comes with a range of benefits and depreciation deductions to shield the owner of the property from income taxes. Additionally, once the property is put back on the market, the owner is taxed at a lower marginal tax rate than his or her usual income.CONS OF PURCHASING A COMMERCIAL PROPERTYPurchasing a Commercial Property in Dubai Takes Time!As with any other expensive investment, purchasing property in Dubai takes a considerable amount of time – especially due to the substantial transactional costs involved in the acquisition and deposition process of the property.These costs can even out the long-term benefits of owning a commercial property or nullify the benefits of appreciation of the property for at least a short period.The Initial Investment Can Be Massive!In the majority of the cases, the commercial property requires an initial payment of at least 20% to 30% of the total value of the property. Considering the real estate market in Dubai, this value can be too much to bear for the investors. This money can rather be invested in the owner’s other business activities.A Commercial Property Can Be Difficult to ManageIssues regarding commercial property management are usually complex in nature. These complications range among legal, compliance, health and safety concerns. Managing contractors can also be expensive and distracting. It is an additional burden for the owner of the commercial property attempting to run a business.Difficult Financing Covenants and limitationsCommercial property purchasing loans require personal as well as corporate guarantees. The long list of requirements also involves some type of liquidity such as a minimum deposit balance with the lender.On the other hand, non-recourse fixed-rate financing usually comes along with other demands, which includes breakup fee or yield maintenance if the loan is retired prematurely.  

Dubai, being the financial hub of the Middle East, promises to provide opportunities for people to invest in a wide variety of ventures. It has a special economic free zone, the Dubai International Financial Centre (DIFC)regulated by the DFSA, that was established in 2004 with the aim of providing a suitable financial as well as commercial hub not only for the Middle East but also for African and South Asian markets.With covering more than 110 acres, DIFC has emerged as one of the world’s top financial centres that house over 23,000 professionals that are looking for a modern city living while working in the financial sector. DIFC is located on the Southside of Sheikh Zayed Road, between the Trade centre roundabout and Junction one of Sheikh Zayed road heading South-West towards Abu Dhabi.The DIFC district boasts of modernized office spaces, retail outlets, cafes and restaurants (Caramel Restaurant and Lounge and Zuma), hotels (Ritz Carlton Dubai International Financial Center), art galleries (The Empty Gallery), residential apartments, public green areas.DIFC is dominated by the 15-storey building, The Gate that is considered to be its main landmark. With its high-rise buildings, many apartments and commercial spaces are available for rent and sale. This community is easily accessible by Metro Station, being located between Emirates Towers and Financial Centre metro stations.How to start a business in DIFCOwing to its ideal location, DIFC provides a secure and efficient platform for businesses and financial institutions to reach into and out of the emerging markets of the region. DIFC has its own independent, internationally regulated and judicial system, common law framework, global financial exchange, and a large business community.DIFC offers the chance to get 100% ownership of your business. They are regulated by the Dubai Financial Services Authority that grants licenses and regulates the activities of financial services being conducted through DIFC.Moreover, DIFC provides a guarantee of zero taxes for up to 40 years, on both corporate income and profits, owing to the UAE’s treaties with regulators and central banks regarding taxation.Operating in DIFC is quite simple and efficient. DIFC is equipped to provide a wide range of services from registration, incorporation, licensing, leasing and employee sponsorship processes, commercial property ownership, query handling, issue resolutions, expansion assistance and client induction.Buying or renting in DIFCDIFC offers commercial office spaces, business centres, dynamic retail spaces and modern data centres. All these spaces are equipped with the latest facilities, safety and security systems, easy accessibility and many more.Commercial office spaceCommercial office space is available either as leased office services, leased offices and serviced offices. Registered companies have the option to choose a suitable commercial office space for their business.Leased office spaceThis type of space is equipped with all the required facilities and services. You can easily rent out this space at just AED 19,200 per annum.Leased officesYou can choose from a variety of floor plans provide layout opportunities suitable for office space. These offices are available from AED 396,000 per annum.Full floor (Index Tower) – Starting from AED 4,633,200 per annumHalf floor (Burj Daman) – Starting from AED 3,891,467 per annumServiced officesServiced offices are available on flexible lease terms, and they cater to requirements up to 800 sqft. These offices are equipped with all the modern furnishings and facilities that are needed to provide an ideal base from which small companies, newly established or firms may expand and grow their business. It is available to be rented starting from AED 122,000 per annum.Retail spaceDIFC leases office space to a range of retail businesses from restaurants, art galleries, grocery stores, pharmacies, nurseries, fitness centres, health and beauty outlets, and technology and office support. The retail space can be rented starting from AED 104,500 per annum (Index Tower) to AED 580,580 per annum (Central Park Tower).Business CentresBusiness Centres meet the demands of financial and business professionals by providing multi-purpose offices with impressive high-tech services, dedicated IT support and fully furnished meeting rooms.These are available on quite flexible lease terms. The average rent of the business centre is AED 230,400 per annum (DIFC Tower).Event spacesThe DIFC offers spectacular event spaces that can be modified to suit any occasion. Moreover, the East and West Wing areas are also available for booking during the daytime as well as at night for smaller events, exhibitions and receptions of 50-70 guests. These spaces are usually available at AED 100 per hour.Data Centre Hosting FacilityDIFC data centre provides a secure and resilient infrastructure to ensure minimum risks and maximum uptime. As a result, DIFC has built four state-of-the-art data centres within the DIFC campus offering hosting services tailored specifically to its prestigious financial and business requirements.Studios and apartments in DIFCThe average rent for a studio in DIFC is AED 65,000 per annum. Whereas the average rent for a 1-bedroom apartment is AED 100,000 per annum. While people who are looking to buy a one-bedroom apartment can get it at around AED 1,600,000.DIFC is a great option to consider especially when you are a single and young professional who is looking to excel in the finance world.  Since DIFC aims to become a global financial hub, it has attracted many highly qualified expats.If you are looking for a commercial or residential space in the DIFC area, then do not hesitate to contact us. For any further questions, assistance or a fast quote, you can call our help centre between 8.30 am to 5.30pm from Saturday to Thursday. We can not only help you find that perfect location but also guide you in setting up your business.  

Dubai is undoubtedly considered to be the global gateway to the Middle East, providing opportunities for people to invest in a wide range of business services and infrastructure. Dubai boasts of having a four-times crowned Global Free Zone and the world’s first-ever free zone, Dubai Multi Commodities Centre (DMCC). Established in 2002 as a government entity in the center of the Jumeirah Lakes Towers district (JLT), it has the sheer aim to make Dubai the most preferred destination for commodity trade flow. Moreover, DMCC is not only home to a dynamic community, innovative and state-of-the-art infrastructure, excellent services, but it also has a spectacular range of properties to choose from, all of which are just a few minutes away from main locations. DMCC in Jumeirah Lakes Towers is a 200-hectare mixed-use free zone that is grouped into clusters each comprising three tower blocks. With 68 towers and the development comprising approximately 180,000 sq/m of commercial, residential and retail space, DMCC is considered to be in a class of its own. Essential steps to starting a business There is no doubt that setting up a business in a free zone is quite easy, however, you have to go through a certain procedure in order to achieve that. Whether you want to set up a new company or simply establish a wholly-owned subsidiary in DMCC, the entire process is quick, easy, and clear as the free zone authorities require minimum paperwork and duration. The following steps will help you set up your business in a free zone. Determine the type of legal entity You need to decide which type of license you want and what business activity you want to conduct. It is really important to know which documents you require for the process. You can calculate all costs involved by using the DMCC cost calculator. In DMCC, the minimum share capital for forming a free zone company is AED 50,000 per company and AED 10,000 per shareholder. For a company to be issued a General Trading License, it should have a minimum of AED 1 million share capital. Choose a trade name Submit an online registration form. Complete the form, pay the initial application fee of AED 1,035 and submit your application. After seven working days, DMCC will complete the company name reservation, management and compliance approval. Apply for a business license In DMCC, you can choose from over 600 business activities ranging from over 20 sectors such as energy, commodities, gold and diamonds, technology, construction, FMCG, healthcare, aviation, shipping, education, media, professional services, financial services and personal and community services. Apply for that specific business license. Choose an office space You can either buy or lease office spaces in free zones. Office requirements depend on the number of employees and type of business activity of your company. In DMCC, you can choose from a Flexi desk of 200-300 sq.ft., a Flexi office of 2000-2650 sq.ft., or offices running through multiple floors with a total of 20,000 sq.ft. each. Choose a perfect office space. Finally, sign and submit the relevant documents for your new office space. Get pre-approvals, register your business and finally get your license Make sure that you pay the registration and license fees and sign legal documents. Within 5 working days, DMCC will issue a provisional approval and bank letter (to open a company bank account). Finally, after 5 working days, DMCC will issue your E-License, so you will be ready to do business in DMCC. There will be a number of things which you will need before applying: Online pre-approval application formCopy of your passport, UAE residence visa and a copy of your Emirates ID Proof of residential address in the country of residenceCopy of Company documentsThird-party approvals for business activities in DMCC free zone (required once the company is registered) How to lease or own a commercial space in DMCC DMCC offers a superb choice of properties that can fit any size and type of business. Owing to 66 towers, you can either opt for fitted space or shell and core or choose serviced offices that are specially designed for smaller businesses. Flexi-desks are available on a part-time basis while giving your business a full-time physical address and professional appearance. You can access a number of amenities including unlimited access to meeting rooms. Serviced desks are available for businesses that have full-time staff and therefore require a dedicated desk. Serviced offices are 215 to 279 sq. ft. and fully furnished offices that can comfortably accommodate 2-3 people. DMCC Free zone also provides fully furnished serviced office spaces that range from 200 sq. ft. to over 6,000 sq. ft. Facilities such as air conditioning, electricity or building service charges are included. Each office has 24/7 access with security as well as shared services like reception, kitchen and free beverages and housekeeping amenities. DMCC offers a great working environment in the perfect location at extremely affordable rates. It is the perfect location to create any business within reach of thousands of potential clients and the opportunity to work alongside many global leaders. 1.  Full office space DMCC offers offices that are strategically located in towers covering most areas of the Free Zone. These towers offer offices ranging between 100 sq. ft. and 500 sq.ft. in a luxurious environment, having a rent from from AED 30 per sq.ft. for shell and core and AED 40 per sq.ft. for fitted office.  All services, such as a dedicated telephone and fax numbers, internet connection, fully equipped meeting room facilities and advanced audiovisual technology are usually available, making it an ideal place to set up your business. 2.   Serviced office For those looking for convenience,serviced offices are available at affordable prices, with rent starting from AED 2,000 per month, depending on the size and location of your chosen office. All offices are fully furnished and equipped with high-speed internet and fiber optic communications. Moreover,  meeting rooms and boardrooms of various sizes are available for bookings for a time span of 10 minutes to a full day. You can benefit from 24-hour access and security; making it the ideal workspace solution for those who want a convenient environment to conduct their business. 3.  Shared space If you are on a tight budget, then you can still find a place to start your business. You can rent workstations in a collaborative space, that allows you access to a range of excellent facilities and amenities including 24-hour access to Wi-Fi, copy and printing facilities etc. You can easily find co-working spaces at quite an affordable price AED 750 per person/month. It does not matter whether you are an existing member company or a prospective new business owner, the DMCC Free Zone offers support at every stage of your business journey. This guide will definitely help to provide you with all the necessary information, tools and resources that are required in the building of your business. If you are looking for a commercial space in the DMCC area, then do not hesitate to contact us. For any further questions, assistance, or a fast quote, you can call our help center at 04 409 0958 between 8.30 am to 5.30 pm from Saturday to Thursday. We promise to help you find that perfect property for you and guide you through every step, to get you all set up.

In response to the ever-growing commercial market in Dubai and increased number of inquiries, in 2018, Better Homes’ management decided to make a strategic decision to grow the commercial brokerage department and become the biggest commercial team in the Dubai market; We have successfully recruited, trained and built on our diverse team which has led to many success stories and a significant increase in the number of transactions since 2018.In order to better serve our customers and purely focus on the commercial property sector, the next strategic move was to give the commercial department its own identity, brand, and space to grow. Better Homes commercial was re-branded to CRC (Commercial Real Estate Consultants) and launched in July 2019. We are now in the process of setting additional value adding services to CRC and to become a comprehensive solution provide within the commercial property sector.Since the news of the CRC launch and its ambitious vision, we have attracted some of the most talented and experienced individuals within the commercial sector and many of them will become a pivotal part of our future success. We will continue to invest in the CRC brand and will grow it over the next year and we aim to launch our consultancy divisions by Q2 2020.Ben Bargh CRC Director

Ambitious, stylish, energetic and offering ultimate sophistication in an upscale environment, Downtown Dubai, also called the Centre of Now, with its architecture and views, gives you the sense that you have arrived. A premier luxury community, Downtown Dubai offers exclusive access to some of the world’s greatest and futuristic skyscrapers, the tallest building in the world, Burj Khalifa, and a distinctive mix of artistically planned residential towers and commercial zones. Downtown Dubai has several world-class hotels including the world’s first Armani Hotel and Emaar’s flagship Address, Vida, and Manzil hotels. With Mohammed Bin Rashid Boulevard, the vibrant thoroughfare dotted with cafés and retail outlets, The Dubai Mall, the world’s largest shopping and entertainment destination, The Dubai Fountain, the world’s tallest performing fountain, The Opera District, highlighted by the majestic Dubai Opera and upcoming developments, the paramount allure of Downtown Dubai is a combination of the neighborhood’s exclusivity, charming architecture, pictorial views, convenient location, lively bustle, and a hip urban vibe.Billed as the world’s most prestigious city, Downtown Dubai embodies the spirit of la dolce vita living, and where everything you could want is at your fingertips. One of the first commercial property developments by Emaar Properties in Downtown Dubai, Emaar Business Park features fully-fitted offices with all amenities. Emaar Square, the established commercial precinct in Downtown Dubai, is a six-tower business complex located next to The Address Dubai Mall hotel and The Dubai Mall and overlooks the commanding Burj Khalifa. With 62,000 sq. ft. of retail options and business services in addition to boutique-style cafes and delis, the complex also has a VIP drop-off area, express elevators, and lawns that are ideal for corporate events. Tenants benefit from fully fitted offices with a range of amenities including advanced telecom systems, hi-speed internet connectivity, video conferencing facilities, and central satellite television.Get ready for a fresh take of life in the city. Enjoy the constant thrum of energy that reverberates with working in one of the most expensive zip codes in the world. Let the charm of the old ways escort you into the conveniences of the new urban sensibilities. Take time to wander. Explore. Savor. In essence, Downtown Dubai epitomizes everything about living and working in one of the world’s most dynamic cities and offers some of the region′s best commercial property options. Experience the opulent environment and the buzz of a world-famous neighborhood that is Downtown Dubai.Explore Downtown Dubai commercial properties furnished with the latest amenities and infrastructure that will seamlessly suit your business needs.Search here or contact us to begin your journey.