UAE Commercial Property Monitor, Q4 2022

  • The UAE’s commercial property market remains among the strongest both regionally and globally
  • Outlook remains positive as 12-month capital value expectations continue to rise
  • Foreign investment demonstrates growing confidence in the market with further growth
  • Around two-thirds of respondents feel the market is on the rise in the UAE

The Royal Institution of Chartered Surveyors (RICS) UAE Commercial Property Monitor for Q4 2022 indicated a robust commercial property market, bucking the trend of the global downturn. As such, expectations for rental and capital value growth remain firmly positive for the year ahead.

Tenant demand growth accelerated within all sectors of the UAE market during Q4, as the headline net balance rose to +54%, up from +47 in Q3, +34 in Q2, and amongst the strongest readings posted in any country covered by the Monitor.

The UAE attracted strong growth in foreign buyer interest over Q4, posting a net balance of +53%, slightly ahead of its neighbour Saudi Arabia (+49+) on this metric.

The short to medium-term outlook is strong, however this may be tempered by growing finance costs and compounding demand and supply imbalances further into the future. The metric for credit conditions lowered to +26%, which is down slightly from the +34% reported in Q3, although up from the +18% rating reported in Q2. Sentiments in Dubai reflect the strong conditions of the market, however there is some concern that its popularity for foreign investors risks oversaturation in the next few years.

Overall, the UAE’s commercial property market is in a strong position in every sector, placing it in a good condition to weather storms which might head in from the global economy in the future.