Small businesses in Dubai that are in dearth of ready funds are favouring International City as preferred location for office premises, a real estate firm said.
The Managing Director of Orion Holdings, Samir Munishi, said that low rental rates and a central location are the prime attractions of International City. The mixed-use development has emerged as a top destination for start-ups and newly launched small businesses specializing in retail, trade and services.
Ever-since its establishment, International City, a theme-based cosmopolitan community has been drawing in small businesses, as rents here are way below those in other parts of Dubai. Further, the location of International City, makes it easier to serve clients across the UAE and in the wider region, Munshi said.
In 2008, International City, spread across 8 million square metres had occupancy rate of just 40 percent. Today, all residential and commercial units have near 100 percent occupancy, says the statement issued by Orion Holdings.
The Jumeirah Lake Towers Free Zone (JLT Free Zone) has been at the fore-front in attracting start-ups, with more than 4000 registered businesses.
According to Munshi, the right office location can make or break a business. Hence, it makes better sense to open an office in a location such as International City, where it is easier to obtain trade license, while also taking advantage of low office rents.
Munsi said that small businesses are vital and major contributors to economic development and job creation. International City has been instrumental in giving the much required boost to small businesses that have limited capital.
International City is divided into theme-based clusters such as France, England, China, Morocco, Italy, Greece, Russia and Spain amongst others. Clusters are so named, as each building in their respective district represents the design structure found in those countries.
From commercial point of view, investors in International City are being rewarded with Capital growth at the rate of 20 to 30 percent return on investment, particularly in Spain, England, France, Italy and Russia clusters. All basic amenities such as post office, banks and police station are already present in the area. Further, RTA Bus service links the area to Rashidiya Metro Station and also to every major business address in Dubai. It is in close proximity to Dubai International Academic City, which hosts world’s leading universities.
Apart from residential properties, analysts predict further increase in demand for commercial properties in International City, as the area has a population over 200,000 now. The growth is largely due to demand for supermarkets, coffee shops, restaurants, grocery shops, pharmacies and several need-based services.