UAEs Commercial Real Estate Outlook for the Future

The UAE's commercial property market is expected to increase at an annual rate of 3.59% between 2023 to 2028, reaching a total value of $280.80 billion by that time. By that time, the market is expected to have grown to $334.90 billion. It is expected that the COVID-19 pandemic aftermath, several upcoming possibilities, and several long-term trends will all contribute to this expansion.

Relentless Patterns Powering the Industry

There is an expectation that the trend of smaller office units, especially with CAT A fit-out, will continue to gain popularity. This is because flexible places of work are necessary and remote work is becoming more and more popular.

The strategic location, hospitable business climate, and first-rate infrastructure of the United Arab Emirates continue to draw in foreign investors and international corporations, driving up the requirement for commercial property sales in Dubai.

Another important trend in the real estate industry is the incorporation of technology. To improve property viewings and offer cutting-edge solutions like digital property marketplaces and smart home technology, the UAE is embracing cutting-edge technologies like virtual reality (VR) and AR.

It is anticipated that this trend will persist, with new developments in technology enabling more transactions and better asset management for real estate.

How the COVID-19 Pandemic Affected Commercial Real Estate

The UAE's commercial real estate market has been significantly impacted by the COVID-19 pandemic. Rents and prices fell as a result of the pandemic's escalation of the oversupply problem. Notwithstanding, the market has witnessed favorable developments, including heightened requests for adaptable workspaces and the quickening of the digital revolution in the retail industry.

Notwithstanding the difficulties brought about by the global epidemic, the UAE's property market has held up very well, with demand gradually rising, particularly in the housing industry. Investment in the industry has been stimulated by the implementation of stimulus plans and the easing of loan-to-value ratios. Travel restrictions, however, can cause a halt in demand from foreign investors.

Prospects and Difficulties in the Upcoming Years

The forthcoming decade of commercial property sales in Dubai is expected to be shaped by many possibilities and difficulties. On the one hand, the demand for commercial property is predicted to increase as a result of the UAE government's ongoing investments in infrastructure enhancements, such as new economic zones and Expo 2020 Dubai.

However, since rising interest rates could render mortgages less available and reduce demand, they may also pose difficulties for would-be homeowners. These other concerns include inflation and interest rates.

Notwithstanding these difficulties, businesses and investors continue to find the United Arab Emirates to be a desirable location, and the market for commercial property is anticipated to rebound and prosper over time. It is anticipated that the market will keep expanding due to causes such as government programs, technical developments, and economic recovery. Nonetheless, in this fiercely competitive market, investors must carry out careful due research and make well-informed investment judgments.

Date: 03 Jun, 2024

• Share: