Growth of Office and Retail Spaces
Published Date: 04 Jun, 2024
Dubai's commercial real estate sector has grown as a result of the increase in office and retail space. Office sales increased by 132% in the first 8 months of 2021 as a result of investors and end users actively buying office space. Nearly 9 million square meters of gross leasable area (GLA) of office space were available in Dubai as of 2021, and by the end of 2022, an additional 70,000 square meters of high-quality office space should be available.
With a fifty percent rise in the amount of deals and a 94 percent rise in the transactional value, the retail sector had a notable growth in sales interactions during Q2 2023. Because of the improving financial conditions, the tourism industry's resurgence, and favorable demographics, it is anticipated that the retail sector will continue to thrive.
Increase in Real Estate Travel
Another major factor driving the expansion of buying in the commercial property sector in Dubai is the rise in real estate tourism. In Q2 2023, 63% of all house transactions valued at $10 million or more took place in the affluent communities of Emirates Hills, Palm Jumeirah, and Jumeirah Bay Island.
Mortgage transactions climbed by 38% in Q2 2022 compared to Q2 2022, indicating a growth in real estate tourism. This indicates that a growing number of individuals are taking advantage of financing opportunities to make real estate investments, which is driving up demand for commercial property in Dubai.
The commercial property industry is anticipated to continue growing in the upcoming years as Dubai solidifies its position as a major international center for finance and business.
How Diversification Affected UAE Commercial Real Estate?
The commercial property market has been significantly impacted by the United Arab Emirates' economic diversification plan. The United Arab Emirates has become a popular destination for property investors across the globe due to the government's aggressive efforts to draw in international investment, provision of freehold ownership, and lack of limitations on profit repatriation. The real estate market is expanding and developing as a result of the spike in demand for commercial real estate.
Additionally influencing the best Commercial Properties for Sale in Dubai is the UAE's dedication to sustainability. Investors are willing to pay extra for environmentally friendly buildings, and there is a growing demand for sustainable real estate in the United Arab Emirates. The creation of smart buildings, green buildings, and properties with renewable energy sources is the result of this movement.
Growth in Industrial and Logistics Areas
The UAE's aspirations to become a regional hub for commerce and logistics, along with its advantageous location as a worldwide corporate hub, have increased demand for commercial and logistical premises. The building of the Etihad Rail is one major infrastructure project that has increased demand for this product. The government's efforts to draw in foreign capital, like long-term resident permits and 100% foreign ownership of businesses in specific industries, have also helped to expand the industrial and logistical sectors.
Date: 04 Jun, 2024
