Introduction
The government is in the process of developing Ras al-Khaimah as a manufacturing, commercial and recreational centre through policies aimed at promoting the country internationally. (PriceWaterhouseCoopers)
Rental market
As stated previously, there is a substantial lack of supply of office space in Ras al-Khaimah. In the Free Trade Area, the closest comparable office space is renting for US$330 per m2. This is of lower quality, set in a less desirable location. In central Dubai, luxury office space of a comparable standard can reach up to US$884 per m2.
Accounting for the fact that La Hoya Bay is a new, luxury development in an outstanding location and that Ras al-Khaimah is less developed an area, we have conservatively projected a rent of US$442.
This means that it could be possible to achieve yields of over 19% per year!
The yields possible from this deal sound too good to be true. How can you be sure they are achievable?
There is great shortage of such high-quality developments at a short distance from the overcrowded Dubai. With growing foreign direct investment, added incentive of a free business licence and no income or corporate tax, companies will be flocking to
Ras-al-Khaimah - and they will requireoffice space.
Further, commercial tenants tend to be longer term tenants and are reliable with serious lack of supply of office space, meaning higher rentals could be achieved - bringing you higher yields.
Reservation fee
The Ready2invest fee for office space in La Hoya Bay is due in
US dollars and will be:
• 4% of purchase price for purchases less than 100m2
• 3% for purchases of between 100m2 and less than 200m2
• 2% for purchases 200m2 and above.
No VAT is due on the reservation fee.
[to calculate fee: area x relevant percentage]
For full registration details including the Registration Form and a list of Reservation Terms and Conditions, please download the full brochure as a PDF below.