Dubai’s commercial market reached an all time high in Q3 says CRC
With 254 commercial units sold, Business Bay remained the most popular area in Q3 according to Dubai Land Department data
CRC (Commercial Real Estate Consultants) has announced that the commercial market in Dubai reached an all-time high in Q3 2022. In a report on the quarter, the firm said this result was driven by existing businesses relocating to more prestigious sites, in addition to a significant number of new company licenses being issued in the emirate.
Government initiatives to boost the economy with the possibility of maintaining full ownership of a company without needing to have a local partner has led to a remarkable rise in international investment, the firm added.
Discussing the quarter, the firm said that Dubai Land Department (DLD) data on commercial real estate in Dubai had a sharp rise in overall sales transactions by 28%, with a 66% increase in the total value transacted compared to last year. In addition, Dubai experienced retail growth that was previously unheard of, with retail transactions up by 133% and transacted value up by 184%. The latter is said to be the result of prominent retailers such as Brands for Less (BFL), Forever 21, and LuLu opening additional locations to serve a wider spectrum of customers.
In June 2022, the firm said that it saw a surge in Grade A commercial real estate in May 2022.
With 254 commercial units sold, Business Bay remained the most popular area in Q3 according to DLD data. Areas such as International City, Dubai Marina and Mohammed Bin Rashid City were also top choices for many large and medium companies to launch and expand their retail footprint in Dubai, the report revealed.
CRC said it has observed overall buyer leads increase by 38% and demand for office spaces rise by 21% compared to Q3 2021. The firm said this is a clear indication of a stronger business environment in the UAE.
Government decisions, laws and initiatives have enabled businesses to resume work at full capacity, leading to offices, retail, and warehouses witnessing a notable growth in sales by 25% overall compared to Q3 2021, the firm stated.
In October 2022, Knight Frank predicted that Qatar’s hospitality sector would grow by 89% by 2025.
At CRC, the top communities transacted for offices were Jumeirah Lake Tower, Business Bay and Barsha Heights. It added that leasing transactions increased overall by 3%, and the top communities for retail leasing transactions were Majan, Dubai Marina and Arjan, with higher demand recorded in Al Quoz, DIP, and Jebel Ali.
Discussing key sectors in the report, CRC said that the information technology (IT) sector topped Dubai’s commercial leasing market. It stated that US-based Intel will open its first artificial intelligence R&D facility at Dubai Internet City (DIC), which highlights the emirate’s desirability as a major location in the GCC for establishing innovation centres.
The F&B and hospitality sectors were also listed among the top business types that showed exponential growth in Dubai during the quarter. In addition, numerous foreign businesses, including Meta, Optimizely, Rapyd, Folkart, Teneo, Directimo, and Pedersen & Partners, opened their operations following EXPO 2020 Dubai to serve a significant regional market, the report explained.
In early November 2022, Sharjah amended its real estate transfer and ownership laws.
In the upcoming quarters, CRC anticipates a continuous rise in sale and leasing transactions with further price growth as a result of increased demand for commercial properties in Dubai.
