Startups Favour International City As A Preferred Location For Office Premises, Says Orion Holdings

New companies with financial constraints rushing in to set up offices in International City

International City, a project developed by Nakheel, has emerged as a top destination for start-ups and newly launched small businesses specializing in retail, trade and services, according to Orion Holdings, a leading regional real estate company.

Samir Munshi, Managing Director, Orion Holdings, says: “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.”

In 2008, International City, which is spread over 8 million square meters, had occupancy rate of just 40%. Today, all residential and commercial units have almost 100% occupancy.

Munshi said as 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.

Munshi added: “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.”

“From the commercial point of view, investors in International City are being rewarded with the capital growth at the rate of 20 – 30% return on investment, particularly in Spain, France, England, Italy and Russia clusters,” said Munshi.

There is a huge demand from tenants who want to move to International City and more importantly from investors who want to own residential and commercial units due to stable investment returns.

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.

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 rapid growth has resulted in huge demand for supermarkets, restaurants, coffee shops, grocery stores, pharmacies and several need-based services.”
 

Emirate:  Dubai

Date: Jan 13, 2013

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