Pointers to Ponder Upon When Looking for Commercial Real Estate Companies for Investment

Sealing a deal with commercial real estate companies will make or break your prospect to generate an income and get a profitable return of investment for a commercial business. Hence, you need to know what to look for before settling with one company to design and develop your property or to invest in one. Here are pointers you can ponder upon:

Investment Guide

Not everyone intending to invest has performed their research and even if you did, you still need up to date and accurate information as well as useful guide when it comes to commercial property investment. Hence, an ideal commercial real estate development company should offer a free guide in order to usher an investor into the right direction.

The guide will show current trends in the commercial property investment world including what services or products sell, how much initial capital is needed for a specific property, how long it will take get a ROI, and other important information pertinent to your project or investment’s success.

Proven Track Record

Research the company’s track record. Find out how many properties they have been involved with and whether or not it was successful. Involvement may include designing, building or developing, and even selling or leasing the property. Most companies will have the information handy on their website so you can easily compare one site to another. You may also browse through related forums, directories, local listings, and social media groups.

Track record not only includes actual properties developed. Awards and citations also prove how successful a company is in their respective industry; in this case, commercial real estate.

Associated companies also say it all about a business. Thus, the reputation of businesses they are affiliated or work with directly also matter.

Customer Testimonials

This is related to the preceding pointer since feedback from actual clients back up a company’s claim to a proven track record. Again, the website itself will have this information readily available. You can read previous customer’s testimonies about their service. If it’s possible, you can also counter check the veracity of a testimonial by reviewing the source. Who is the person reviewing? What business is he or she representing? Are there websites or social media pages related to the person or the business? Can you be able to contact them personally or through the web for first person information? These are some of the questions you can ask.

Investment Opportunities

Lastly, you should know how much money is needed for the investment and how much will you expect to earn in return. Find out what other perks are also involved. Some companies offer the opportunity to purchase and lease such as in vacation ownership or hotel residences. You can buy a unit or space and either rent it out or use it for personal purposes. Other important details you must know also include insurance, tax, stamp, and so on.

With these pointers to ponder upon, you can effectively choose which commercial real estate companies to invest your hard earned money to and expect a lucrative return of investment.

Regulations for Real-Estate Companies in Dubai

The unrivaled growth of Dubai’s real-estate industry has stunned the world. As it grew, it witnessed a number of brokerage firms mushrooming in the city. Real estate became a popular employment sector as it was profitable owing to the new construction projects coming up and the number of people relocating to Dubai.

In 2007, the UAE Vice President, Ruler and Prime Minister of Dubai, His Highness Sheikh Mohamed bin Rashid Al Maktoum, formed the Real Estate Regulatory Agency (RERA) to ensure fair practice in the industry. This agency was set up to help landowners, tenants and all those involved in this sector to bring more investment and business. It is supported by the Dubai Land Department.

In September 2013, the CEO of the RERA remarked that there were too many real estate companies in Dubai. The number was higher than what was required for the city of Dubai. In fact, a total of 2,205 property firms were recorded in 2014 and 567 new ones commence operations that same year. This prompted RERA to make the existing rules and regulations more stringent and add a few more as an attempt to bring down the numbers and maintain quality.

The new measure introduced in 2014 were:

a. The pass marks for the tests for renewing licenses was brought up from 75% to 85%. This was to ensure that the brokerage firms had maximum knowledge about real estate laws and regulations.

b. Broker cards were introduced that were to be linked to an Emirates ID.

c. For new real-estate companies in Dubai, a new rule was introduced that allowed them to employ not more than four agents in the first year. Any increase in the number of agents the following year depended on the business of the firm in the first year.

d. RERA decided to take strict actions against those Dubai real estate companies that failed to conduct any business or transaction for six to twelve months. A warning letter is sent to such firms and if no improvement is recorded, RERA has decided to cancel the registration of such companies.

In addition, the tests for obtaining new licenses and renewing old ones were made more difficult so that the companies took their business seriously. This was done to maintain the industry standards and quality.

In spite of all of these measures, setting up real estate companies in Dubai is a profitable venture as the market has been growing at a steady rate. The RERA and the Dubai Land Department work together to ensure that the industry grows positively and is beneficial to all those involved in it.

Real Estate Companies – Only The Strong Will Survive

One of the hardest lessons of the past decade, which has affected both homeowners and real estate companies alike, is that what goes up must come down. And it often comes down with a suddenness that leaves everyone involved with queasiness unequalled by a ride the world’s great roller coasters.

The reality of the real estate market in 21st century America is that almost everyone who wanted a home in the past five years bought one, and even those who did not want, and should not have bought one, did in the hopes of turning it over for a quick profit. Because there are so few buyers now, and because lending institutions have been saddled with so many foreclosures that they are much more careful about their lending standards, the real estate market today is the playground of qualified buyers, and no longer that of the real estate companies.

So the real estate companies have shifted to survival mode, and are looking to the buyers for guidance on where they should be focusing their development efforts. But even the lack of buyers, in some areas, has not put as much downward pressure on home prices as one might expect, simply because developable land in the most sought after locations is rapidly disappearing, and real estate companies factor the cost of their land into the final cost of their homes.

The Dilemma Of The Real Estate Companies

Real estate companies are well aware that they will never have much difficulty finding buyers for either their entry-level or high-end homes. But they are currently overloaded with homes in the middle price ranges, because they have to build them in such large numbers in order for their businesses to be cost-effective. And as long as those homes remain unoccupied, they are an enormous drain on the resources of the real estate companies.

Addressing the Issues

In order to survive with the realities of the current market, real estate companies have had to go back to the drawing board and come up with some new approaches to their business. These include both raising the quality and lowering the costs of the homes they build. They have begun by substituting materials which will add durability to their offerings for those which simply add curbside appeal, but need replacing after a few years.

Real estate companies [http://www.1realestatehelp.com/Articles/Buy_Real_Estate.php] have finally come to the realization that most of their customers intend to stay in their homes for the long haul, and are not afraid to take legal measures against a developer who shortchanges them with shoddy materials in homes built on unsafe or contaminated land.

When the current lack of confidence in the real estate market finally begins to wane, those buyers who have been waiting on the sidelines will be looking for those real estate companies who have spent the down time improving their customer relations and the quality of their products. They won’t be hard to find, either, because they’ll be the only real estate companies to have survived.