The strategy of converting residential buildings into commercial buildings has spread recently in Dubai, as many residential property owners have submitted official requests to change the specifications of their properties and convert them into commercial properties. This is within the framework of achieving higher profitable returns as a result of its investment in the field of sale or rent, coinciding with the high demand for purchasing and renting offices, stores, warehouses, and even commercial lands.
- Converting a residential building into a commercial one requires fulfilling several requirements, official documents, and conditions specified by Dubai Municipality. Then use the building for commercial work and determine its price according to its real estate status.
If you have a residential apartment, villa, or land designated for housing and would like to convert it into commercial real estate, follow along with us in our next article. To learn about the strategy for converting residential buildings into commercial buildings in Dubai, including its advantages and challenges. Let’s continue together until the end.
Strategy for converting residential buildings into commercial buildings in Dubai
The strategy for converting residential buildings into commercial buildings in Dubai includes the possibility of using residential property for specific commercial purposes. This depends on the real estate zoning regulations and predetermined building usufruct rights. Therefore, before purchasing or renting a property, it is necessary to check the zoning regulations and building use rights through the Dubai Land Department.
- If the property is intended for residential use, it is possible to apply and obtain an official permit to change the use to commercial property. This is after obtaining the necessary permissions and approvals from the relevant government authorities in Dubai.
Benefits of converting residential buildings into commercial units in Dubai
You can get many benefits when converting residential buildings into commercial buildings, which are as follows:
- Rental returns for commercial properties are higher than residential properties, which makes them more attractive to local and foreign investors.
- Commercial real estate leases are longer in duration compared to residential leases, and this is what attracts more tenants, especially with the feeling of stability for a long time.
- The presence of a diverse base of clients wishing to purchase or lease commercial real estate, including retail stores, offices, and warehouses.
- The possibility of increasing capital when investing in commercial real estate, especially properties with vital locations that attract long-term investors.
Practical steps to convert residential buildings into commercial ones in Dubai
Converting residential buildings into commercial ones in Dubai requires you to follow the following steps:
- Verify that the location of your residential property is zoned for commercial activities by reviewing the real estate zoning regulations in your specific area.
- Apply to Dubai Municipality to obtain an official permit to change the use of your residential property to a commercial property.
- Obtain the commercial license to operate your commercial project on the property you wish to convert through the Department of Economic Development in Dubai.
- Adhere to all required building and safety laws when converting residential property to commercial, including parking conditions. This is at a rate of one parking space for every 500 feet.
Modular residential buildings in Dubai and the potential for conversion into commercial
Modular residential buildings in Dubai are prefabricated homes consisting of one or several sections (modules), and they are quick to design and construct.
- The Modular house can be built for residential purposes and then converted for commercial uses. One section of the house can also be used for housing, while the other sections can be used for commercial purposes, in a way that suits the goal and budget of the owner.
Here we have concluded our article about converting residential buildings to commercial in Dubai: advantages and challenges, through which we learned about the mechanism and benefits of converting residential real estate into commercial ones in Dubai. Especially with the spread of this strategy and its role in supporting the UAE real estate sector recently by encouraging investment opportunities and achieving high and sustainable profitable returns compared to residential real estate.
