Business Bay – Dubai’s city that means business

The latest crack to appear in the UK economy points the finger at the over-inflated commercial property market. Commercial property funds are currently seeing a fall in total returns for the first time in 15 years. Norwich Union downgraded the valuation of one of its main property funds by 2-3% in September this year and experts would have us believe that this is the start of a cyclical downturn. Worrying for investors. Just over 5,000km away in Dubai, and you’ll find a very different story. Business is literally booming.

Stewart Banks, Product Portfolio Executive for Dream Homes WorldWide comments, “There is a massive influx of employees, business travellers and new residents to Dubai and commercial units are very much in demand. Vacancy rate is currently at 1% with 40% of existing tenants seeking to increase their office space. Waiting lists for office units regularly exceed 12 months, rent is required one year in advance and rental yields are pitched around 17%. Sheikh Mohammed’s vision for huge prosperity is certainly coming to fruition and investors can share in this business boom by taking freehold ownership of commercial property.”

Dubai’s ruler has shrewdly created the perfect environment for setting up business in, or relocating to, the Emirate. Income tax, capital gains tax and corporate tax are all rated at 0% and facilities from Dubai World Central International Airport, the world's largest passenger hub, to efficient ports, not to mention a strategic Middle Eastern location, have all contributed to the fact that nine of the worlds’ top ten MNCs are now found in Dubai.

Business Bay is a purpose-built city within a city under construction in Downtown Dubai. When complete in 2015, the freehold commercial, residential and business district will encompass over 230 buildings, including many signature skyscrapers, and will become one of the most important business centres in the world, as Manhattan is to New York. As an indicator Dubai Financial Market will relocate to Business Bay in 2009 from its current location in Dubai World trade Centre. With room for everyone, from small start-ups to major MNCs, Business Bay will also offer medical facilities, sports complexes, health clubs, supermarkets, shopping malls, fine dining, bars, green spaces and a network of canals.

Currently on the market in Business Bay:

Business Tower – a 22-storey innovatively designed tower set on a high profile corner plot on the Business Bay Waterway. On-site facilities for a happy workforce include high-speed internet connectivity, swipe-card access, three levels of parking and a huge range of facilities from a covered swimming pool, running track and his ‘n’ hers gymnasiums to a rooftop lounge, café and waterfront restaurants. Office units are available from 115m² and priced from £343,600GBP although modifications are possible according to taste. Payment terms are extremely favourable spread across seven installments until completion scheduled for end of 2008. The property also qualifies for SIPPs with all the associated tax benefits for UK tax payers.

Water’s Edge – a sleek 20-storey tower including five levels of car parking. Occupying a stunning waterfront location, as the name suggests, Water’s Edge also offers high-speed internet connectivity, private swipe-card entry, reception, 24-hour security and CCTV. Employees are spoilt with an outdoor swimming pool, rooftop garden, café and gymnasium. Office units are available from 126m² and priced from £344,000GBP although modifications are possible according to taste. Payment terms are extremely favourable spread across ten 10% installments until completion scheduled for end of 2011. The property also qualifies for SIPPs with all the associated tax benefits for UK tax payers.

For more information, visit dreamhomesww.com.