Ryan Mahoney (Dubai, UAE) has extensive experience of the Middle Eastern property market as CEO of Better Homes and owner of CenCorp, a group of companies operating in the real estate sector. In 2020, Ryan Mahoney co-founded the largest agency-owned real estate website in the UAE. This article will look at the CRC (Commercial Real Estate Consultants) Commercial Property Market Report FY 2021 (CRC is part of CenCorp, a conglomerate of real estate-related businesses).
2021 marked a turning point in Dubai’s real estate sector, largely triggered by positive economic reforms. As a result, both prices and demand for commercial property overtook even pre-pandemic levels.
Dubai’s commercial property market has made an almost complete recovery, with confidence building among business owners, who are increasingly optimistic about the future of their businesses. The desire to secure better, more extensive commercial premises for longer has become an increasingly popular trend across the region.
The Dubai Government has passed several pieces of new legislation designed to kickstart the country’s economy post-COVID-19; for example, switching to the Monday to Friday working week adopted by most of the rest of the world, as well as the introduction of sector-specific visas for professionals. These measures are credited with spurring growth in Dubai’s economy, with a particularly positive effect in the country’s commercial real estate market.
Dubai continues to boast one of the most robust economies in the Arab World despite the disruptive influence of COVID-19, with experts anticipating that the country will remain highly attractive to both resident and foreign investors for the foreseeable future.
Overall, the Commercial Real Estate Consultants Commercial Property Market Report 2021 suggests that as the market returns to normality commercial property prices in Dubai will continue to rise, supporting greater confidence in the country’s property market as a whole.
In 2021, Dubai’s commercial property market saw 7,179 commercial property sales, representing a 19% increase on the previous year. Meanwhile, the total value of unit sales reached nearly 31 billion, rising 35% compared with 2020 figures.
In terms of the most popular communities for office and retail property purchases, Downtown Dubai, Barsha Heights, Dubai Silicon Oasis, Al Barari, and Jumeirah Lakes Towers all ranked highly, with Business Bay taking the top spot.
EXPO 2020 combined with a resumption of international travel led to over six million tourists arriving in the country by the end of November 2021, surpassing 2020 levels, according to a report by Khaleej Times. As a result, retailers reported a significant increase in footfall.
Following the astounding economic uncertainty of 2020, the Commercial Real Estate Consultants Commercial Property Market Report 2021 reveals that trust in the market bounced back in 2021, with no sign of investor interest diminishing any time soon.