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A few Differences between Commercial & Private Property

Real estate market has become an apple of eye for everyone around the world especially among foreign investors. Developing countries and cities like Dubai, UAE is a perfect example where you’ll find more foreign expats than locales. Ever since the economic crisis abated, Dubai has become a preferred destination for travel and business operations thus resulting in mass development taking place throughout the city.
Whether commercial or residential, you’ll find every project a masterpiece in its own way. Both property types differ in many ways when it comes to utilization as private real estate encompass residential projects while commercial is usually for business purpose. To know more, read below and find out.

Alba Prop

    Commercial Properties in a Glance

Commercial property is reserved for business purpose whether constructing a massive shopping mall, a multi-story building housing various offices or any other project for instance. Builders must first consider zoning regulations before initiation while also take into account material used is of standard quality. These projects are usually located in city central or any other place having easy accessibility for customers, clients and businessmen themselves.

Measure overall size of the land and building! Get a rough estimation about capacity of workers, equipment and customers. Ensure the foundations are solid and infrastructure is more energy efficient. Quality of the building ground and surrounding area also impacts in many ways. The building must be aesthetically sound with environment with sound parking and amenities. Think about convenient access from freeways or toll roads for instance.
Analyze income generated from this commercial property. Utilize its net operating income prior debt and depreciation for a single year, take the figure and divide by capital rate thus giving you a general idea of how profitable a property is! Also note if the property is fully leased, general maintenance and high expenses.

Determine the original purpose of construction and whether is it used for similar purpose or not! Also know the worth of building’s existence and general functions. Age of construction also matter as a building more than 25 years old is usually classified as “C” being less desirable however case is different if they’re well maintained. According to property management in Dubai, a class “B” building if properly renovated can climb to class “A”!

    Residential Properties

A residential area, land or property on the other hand is where housing project dominates in contrast to industrial and commercial real estate. These projects may vary significantly between and even through a particular residential locality. Common types of housing schemes include single family, multi family, apartment buildings, villas and mobile homes. Zoning regulations may allow for a few services but not on large scale, depending on state and of-course municipality.
Residential properties are also located in commercial areas especially apartment buildings having a few floors reserved for retail business or near to a prime business street. Such residential schemes provide ultimate city-life experience while quite economical with abundance of facilities nearby. Schools, hospitals, educational institutes, transportation, super markets and all are in close proximity.
Villas on the other hand is referred to a community located away from all the urban chaos. A fine example to cite here would be of Dubai with its many construction projects. You may click here to know more about Dubai villas and all the features accessible.


Highlighted above are a few key differences between commercial and residential real estate which everyone must be familiar of.

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