Commercial real estate in Dubai is going upwards

After the year that was 2020, the pandemic and the setbacks in the commercial market due to the subsequent lockdowns and restrictions enforced by the local and central government authorities, one can now see that commercial real estate in Dubai has started to bounce back from the disaster that was 2020. In fact, this upward trend can be easily seen from the Q4 of the 2020-21 financial year as the markets have started to bounce back and there are visible signs in the economy across the world. And even though the market has not recovered fully, the gaining confidence of the consumers have, in a way, created an opportunity for new businesses to gain market share, which has also forced established companies to compete in a similar fashion.

Even though the companies are still being more flexible when it comes to working from home scenarios, one can see from the increased demand for commercial space in Dubai and make an educated assumption on what will happen after the pandemic has passed us by.

Increased demand in the commercial real estate in Dubai

The number of transactions in the commercial real estate sector in Q2 2021 has more than tripled to the previous year’s Q2 numbers when the pandemic was in full swing. The numbers of investors in this segment have also seen a tremendous increase as we can see a 13 percent rise in their number, and this number is only going to rise as the market continues to go back to normal.

When it comes to office sizes and prices of those commercial real estates, one will find that the average office space has increased by 19 percent than the previous years, and the average sales prices are also seeing an improvement by around 9 percent. In layman’s terms, this indicates that companies are looking to buy bigger commercial real estate in Dubai and are comfortable paying higher prices for them.

And this increase is not only limited to the buying inquiries only as one will find that the tenant inquiries for commercial real estate also see a significant boom, although their share has changed dramatically. 

Changes in the commercial real estate inquiries

The commercial market is generally divided into around 85 percent tenant inquiries and the remaining 15 percent into sales transactions in the previous years. But this trend has changed significantly in the past few quarters of 2021. The tenant transactions now comprise only around 60 percent of the total commercial real estate valuation. In comparison, the sales transactions have boomed to 40 percent from a meager 15 percent in the previous years. This shows that businesses are more comfortable investing in commercial real estate for the long term.

Ease of Investment in Commercial Property

Dubai’s real estate valuation industry is booming day by day and certainly many reasons are behind it. If you think that you are looking for an ideal reason to invest in commercial properties, then ease of investment is indeed one of them. Nowadays, everything is accessible at your fingertips and you can find your ideal property online with relative ease. You don’t actually have to feel burdened when you want to explore ideal options to invest in commercial properties.

Affordability at Its Best

You don’t have to make a hole in your pocket when it comes to investing in commercial properties in Dubai. Dubai attracts investors and realtors to buy commercial properties. You can look forward to make the best choices in commercial real estate if you want to buy a commercial land. Moreover, Dubai is growing in terms of IT sector and this is another reason why Dubai is going upwards if it is about commercial real estate. Hence, you have options and reasons to invest. Then, why not giving it a try.

This change cannot solely be attributed to the behavioral change of businesses due to the pandemic as the rising demand for commercial estates in Dubai has contributed to it as well. The increasing demand spurs the leasing cost to a whole new level, and businesses are getting wiser to the fact that rather than paying hundreds of thousands of dollars every year for a few years, it is better to buy commercial properties in Dubai one go.