Over the past couple of years, Dubai faced tepid demand for quality grade A office spaces. However, post-pandemic there has been a resurgence in demand due to various factors, such a strong post covid recovery, rising consumer sentiment and pro-business government initiatives. This has resulted in a spike in demand for offices from both investors looking for yield and end users.
In May 2022, Dubai Land Department (DLD) saw a 41% increase in commercial office sales compared to May 2021, with an 87% increase in value of properties sold, as more end users look to leverage strong business conditions for regional and local growth.
Similarly, CRC commercial real estate had a 75% rise in commercial office sales compared to May 2021 and a 228% average increase in revenue. One of the key contributors for this was a AED 53.9M commercial office space sold by CRC brokers, Aleh Baranouski and Umer Iqbal. Iqbal states ‘’These were the only 3 consecutive floors of prime A office space available in the market, and one of the largest office sales in a single transaction, in Business Bay in terms of office size, totalling 43,982.95sqft.’’
CRC has observed an overall increase in client enquiries and transactions of 25% in the first two months of Q2 2022 compared to Q2 2021. Business Bay and Jumeirah Lake Towers (JLT) both remain the top areas for commercial purchases as they are the biggest freehold commercial space in Dubai. These areas are fast becoming a hub for medium to large global companies as well as SMEs looking to house their regional hubs, followed closely by Barsha Heights. In addition ‘’Less desirable buildings in tier 2 locations, such as commercial properties that are not near metro stations are also seeing a rise in occupancy rates’’ states Andrew Elliott, Head of CRC.
Finally, the rise in oil prices has raised the growth prospects for the UAE and the region. ‘’Should the economy continue to strengthen, I anticipate a steady rise in demand across the whole commercial sector’’ states Elliott.
About CRC (Commercial Real Estate Consultants)
CRC (Commercial Real Estate Consultants), an affiliate of Betterhomes, is a leading commercial real estate agency, who plays an integral part in Dubai's real estate history. With over 35 years of industry experience, CRC caters to international and local clients, seeking increased value by selling, leasing or investing in commercial property.
With a team of over 40 property experts, leveraging best-in-class technology and support, CRC understands the business and provides comprehensive options for strategic direction. To buy, sell, or lease a commercial property, get a property valuation, or find an investment advisor. For more information, visit www.crcproperty.com.