Retail may be the place to shop for property investment

Leading broker offers free consulting for prospective investors.

Commercial property could be a safer investment, with some retail space offering a minimum return of 8 per cent.

When it comes to investing in the property market, most individuals will limit themselves to houses and flats. Some people scrape and save for years to build up a enough money to make a down-payment, while others boast an impressive portfolio of properties. Either way, the vast majority would rarely consider an investment in retail space. But Better Commercial, a division of Better Homes in Dubai, is looking to change this perception. The company, which is the region's largest property brokerage, is now offering their support and expertise for individual investors seeking a piece of the retail scene.

"In today's market, it's not just residential property that investors can consider," says Porush Jhunjhunwala, the head of commercial sales and leasing. "Buying a tenated commercial property allows for a guaranteed return on investment for an extended period of time. We're looking at offering assets generating a minimum of an 8 per cent return on commercial investment, and in many cases, even higher."

Better Homes, in collaboration with Better Commercial, will be hosting a series of forums and presentations in the last quarter of this year on the best ways to get involved in the retail market. Meanwhile, investors also receive first-hand guidance on their investments from commercial property consultants. "We need to provide a robust education platform which will allow us to tie up with preferred landlords, offering the most competitive rates in the market within the leasing sector," Mr Jhunjhunwala says.

Just how competitive? He adds that these assets typically start at Dh1 million going all the way up to Dh300m. Mr Jhunjhunwala says that, unlike residential space, the risks are low when you buy retial property, assuming there is a business ready to move in. The asset is typically tenated for a minimum of three to five years at a time, with a minimum return of 8 per cent. "There is opportunity for everyone and it is realistic for individual investors to buy small-ticket sized assets," he says.

For example, in Dubai, retail properties in Jumeirah Lakes Towers and Dubai International Finance Centre are now available, with tenated assets starting from around Dh700 per square foot. Hot areas in Abu Dhabi include The Sky Tower, located on Reem Island, providing modern commercial units for Dh1,500 per square foot. The much-anticipated Suwwouh Island, the home of Abu Dhabi's new financial district, is also expected to offer lucrative opportunities for would-be investors.