Office and retail sales remain at the forefront of the commercial property growth, with offices experiencing a 31 percent increase and retail a 104 percent increase for units sold during Q1 2021
Dubai’s commercial real estate market has reported one of the strongest quarters in several years in Q1 2022, according to the Dubai Commercial Property Market Report released by the CRC commercial real estate agency, which is part of the Betterhomes Group.
The report, which provides an in-depth overview of Dubai’s commercial real estate over the past quarter, highlighted a remarkable post-pandemic recovery in the emirate’s property market.
Reflecting on the findings of the report, the director at CRC, Ben Bargh, said: “In 2021, the commercial real estate market experienced a rebound that surpassed expectations with increased transactions and demand across the board. The growth continues moving forward into 2022, with confidence building among investors and end-users in the market.”
Dubai’s commercial property market soars as post Covid confidence leads to strongest quarter since 2016. Office and retail sales remain at the forefront of the commercial property growth, with offices experiencing a 31 percent increase and retail a 104 percent increase for units sold during Q1 2021
New policies issued by the government at the beginning of 2022, such as moving to a Monday-Friday working week to align with the rest of the world as well as eased Covid restrictions, have made Dubai even more attractive to investors looking to grow or expand their business.
Overall, the report projects that the commercial property market will continue on an upward trajectory, supporting growth in Dubai’s property market and the economy as a whole.
The Dubai property market had a total sales value of nearly $15.24 billion (AED 56 billion) in the first quarter of 2022, according to DXB Interact, a record breaking quarter compared to previous years.
Office and retail sales remain at the forefront of the growth, with offices experiencing a 31 percent increase and retail a 104 percent increase for units sold over Q1 2021.
The total sales value also continues to rise, as offices have seen a 71 percent increase and retail units a 49 percent increase over Q1 2021.
Prime communities such as Business Bay and Jumeirah Lake Towers continue to lead from the front for office sales, followed by Emirates Living and Dubai Silicon Oasis. For retail sales, International City, Jumeirah Lake Towers, and Business Bay came out on top for Q1 2022.
According to CRC data, the number of leasing transactions is up 7 percent for Q1 2022 vs Q1 2021, with the highest increase in the warehouse sector, which witnessed an 88 percent rise.
While prices rise and the demand grows, tenants who would previously shop around year on year, in order to secure high-quality units at the lowest price, are opting to lock down long term leases at lower rental values instead.
Seemingly, the trust in the market has bounced back in the first quarter of 2022, with CRC recording a 17 percent increase in payments with four cheques and one-cheque payments decreasing by 7 percent.
