Small Dubai businesses that are not necessarily swimming in a pool of ready funds are increasingly favouring International City as a preferred location for office premises, a real estate firm has said.
According to Samir Munshi, Managing Director, Orion Holdings, lower rental rates and a central location are the prime attractions of International City, a project developed by Nakheel.
He says that the mixed-use development has emerged as a top destination for start-ups and newly launched small businesses specialising in retail, trade and services.
“Since its launch, International City, a theme-based cosmopolitan community, has been attracting small businesses because rents here are way below those prevailing in other parts of Dubai. Further, International City’s central location makes it easy to serve clients across the UAE and the wider region,” says Munshi.
In 2008, International City, which is spread over 8 million square meters, had occupancy rate of just 40 per cent. Today, all residential and commercial units have almost 100 per cent occupancy, says the statement issued today by Orion Holdings, without citing any sources.
Up until now, the Jumeirah Lakes Towers Free Zone (JLT Free Zone) has been the front-runner in attracting start-ups, with more than 4,000 registered businesses.
Orion Holdings’ Munshi, on the other hand, said in today’s statement that, as the right office location can make or break a business, it makes sense to open an office in International City where it is easy to get a trade licence while benefiting from low office rents.
“Small businesses are vital and significant contributors to economic development and job creation. International City has been instrumental in giving a shot in the arm to small businesses that have limited capital,” Munshi added.
International City is divided into different theme-based clusters such as China, England, France, Greece, Italy, Morocco, Russia, and Spain amongst others. Clusters are named as such because each building in their respective district represents the design structure found in those countries.
“From the commercial point of view, investors in International City are being rewarded with the capital growth at the rate of 20 – 30 per cent return on investment, particularly in Spain, France, England, Italy and Russia clusters,” said Munshi.
All basic facilities like banks, post office and police station are already present in the area. RTA Bus service connects the area to Rashidiya Metro Station and almost every major business address in Dubai. It is also in close proximity to Dubai International Academic City which hosts world’s leading universities.
Munshi added: “Apart from residential properties, analysts predict further increase in demand for commercial properties in International City since the area has a population of over 200,000 now. This growth has resulted in huge demand for supermarkets, restaurants, coffee shops, grocery stores, pharmacies and several need-based services.”
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