Whether commercial or residential, any kind of property has the potential to be a profitable investment. That being said, commercial buildings - which often have higher financial risks - typically offer greater rewards than residential properties like single-family homes or rented apartments.
There are various types of commercial properties, such as office buildings, warehouses, labor camps, and staff accommodation. For instance, you can charge higher rates if you invest in offices for rent in Dubai, where the square foot comes at a premium rate. If there's high demand for these sorts of spaces and your running costs aren't too severe than you could see a returns on investment that's considered fairly good. Though it's important to keep in mind that unfaltering money flow doesn't come without its own expenses attached. Managing a commercial investment often requires a property management team to recruit and qualify tenants, organize the signing of leases, and handle day-to-day operations.
The purchase price for different types of residential properties in Dubai, like apartments, villas, townhouses, and penthouses vary based on the amenities that are offered by the community. For example, it's generally easier to invest in residential real estate as you likely won't have to deal with multiple renters and upkeep costs aren't usually as high if you're buying a single-family home. Having only one tenant comes with a number of risks. If they leave suddenly, you'll stop making money until you can find another renter. Plus, if you took out a loan to buy your property and are relying on rental income to repay it, you'll have to use your own money instead until someone else moves in.