Investing in Dubai's Industrial Zones: Mortgages for Warehouses and Commercial Properties

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Holo Team

2024-01-03T17:22:03.448Z


Many businesses are looking to Dubai and the UAE as attractive places to expand their business operations. Many local and global businesses are choosing to run their warehousing from the region. As a leading mortgage broker in Dubai, Holo is here to guide you through the intricacies of commercial mortgages and financing if you are considering mortgaging warehouse space.

Commercial and residential mortgage products are not the same. You will need a commercial mortgage to finance the purchase of warehouse space. You will have the option to apply for a conventional commercial mortgage or an Islamic (Sharia compliant) loan. As with any mortgage loan, the bank will assess the property value and the credit history of the individual applicant and the business. Consult with commercial mortgage specialists, who can help you get to grips with the process, costs, regulations, and lending criteria.

When applying for a commercial loan for a warehouse, banks consider factors such as the location, the business' financial performance, the business' inventory and equipment, the borrower's experience and business plan, and the overall economic climate.

Commercial banks will typically offer a loan-to-value ratio (LTV) of up to 70%. This means that the loan amount can be up to 70% of the value of the unit and any inventory, equipment, or machinery. However, circumstances and banks are different, and the exact amount you can borrow and on what terms will be established on an individual basis. A commercial mortgage advisor will be able to answer all your questions and advise you on how to make your mortgage application as strong as possible to commercial lenders.

As trusted and experienced mortgage consultants in Dubai, Holo can help you explore our commercial mortgage services, make your application, and secure your commercial financing.

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