Dubai commercial properties sector soars high in Q1 2022, since 2016
2022 is a year of growth and prosperity around the globe after the dark period of the global pandemic. The year will always be remembered in the history of Dubai real estate as the sector came roaring back after almost the past couple of years. The COVID-19 imposed lockdown was started at the beginning of 2020 and the period tailed was full of uncertainty and concerns for every stakeholder including property buyers, sellers, investors, real estate agents and developers.
However, Dubai had gradually made its way out of lockdown and took cautious steps to ward off the effects of the pandemic under its visionary leaders. Resultantly, the property sector started showing signs of recovery from Q2 2021 and continued to soar right after the world Expo 2020 took off. At the end of Q4 2021, the Dubai Land Department (DLD) started announcing a record number of transactions in the Dubai real estate sector. And as the number of transactions increased, so did the prices.
The UAE government took several worth commending steps…
Both local and foreign investors started showing confidence in the Dubai realty market, which was primarily buoyed by the timely actions of the UAE government that took the pandemic as an opportunity to thrive and not just a chance to survive. A few commendable steps were the announcement of the Dubai 2040 Urban Master Plan, new residence visa plans, a 100% business ownership programme, fractional ownership and the most important of all is the successful rollout of the COVID-19 vaccination drive.
After all these steps, Dubai emerged back stronger than ever. Resultantly, a record-high number of real estate transactions were documented in Dubai since Q3 2021.
Dubai commercial properties sector showed strongest growth after pandemic
Dubai’s commercial real estate market has also exhibited one of the strongest quarters in Q1 2022, according to a Dubai commercial property market’s performance report released by the CRC commercial real estate agency. A significant credit goes to the UAE government for bringing in another major reform i.e. changing the weekend to align the country with the Western financial markets, in order to perform optimally. These few steps have made Dubai’s commercial property more attractive to entrepreneurs looking to expand their business in the Middle East region.
The commercial real estate market is on pace for another strong year in 2022 due to the rebound that started in 2021, with a large number of transactions and demand. The numbers of transactions in 2021 have already surpassed the expectations,” states Ali Mustafa – head of the Sales department at HFRE.
“The commercial property market right now is the strongest since 2016, with office, warehouse, and retail units in high demand for both sales and leasing,” states Ben – the director at CRC.
Dubai’s commercial property market will continue on an upward trajectory, supporting the city’s residential property market.
In the first quarter of 2021, the Dubai property market had a total sales value of around AED56 billion. The office and retail units have shown a 31 per cent and a 104 per cent increase for units sold over Q1 2021. A 71 per cent and 49 per cent increase in the sales volume were recorded for office and retail units simultaneously in the Dubai property market, over Q1 2021.
The most popular areas for commercial properties in Dubai are…
Business Bay and Jumeirah Lake Towers continued to be the most in-demand communities in Dubai for offices sales. Dubai Silicon Oasis followed these two communities in terms of popularity.
For retail units, International City, Jumeirah Lake Towers, Dubai Silicon Oasis and Business Bay remained the most popular choices for Q1 2022.