Authored by Dr. Pooyan Ghamari, Swiss Economist
Dubai’s commercial real estate market is booming, with significant increases in office and retail spaces. In 2021, office space sales skyrocketed by 132%, resulting in almost 9 million square meters of leasable area. The retail sector also thrived, showing a 50% increase in transactions and a 94% rise in transaction value by Q2 2023, driven by better financial conditions and a revival in tourism.
Real Estate Tourism
Luxury areas like Emirates Hills and Palm Jumeirah have become central to Dubai’s real estate tourism, with a substantial portion of high-value transactions occurring in these regions. Mortgage transactions also grew by 38% in Q2 2023 compared to the previous year, indicating rising interest in financed real estate investments.
Economic Diversification
The UAE’s efforts in economic diversification have significantly impacted its commercial real estate market. By attracting international investments, allowing freehold ownership, and eliminating profit repatriation restrictions, the UAE has positioned itself as a prime destination for global investors. This surge in demand has driven the development of sustainable real estate, emphasizing green buildings and renewable energy sources.
Industrial and Logistics Sector Growth
Dubai’s strategic location and infrastructure projects, such as the Etihad Rail, have spurred demand for industrial and logistical spaces. Favorable government policies, including long-term residency permits and 100% foreign ownership in select sectors, have further fueled this growth.
Dubai’s strong infrastructure and supportive economic policies ensure the ongoing expansion of its commercial property sector, solidifying its status as a global business and finance hub.
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