Global firms chose Dubai for their business activities and kept their predominant existence in the region. Meta, previously known as Facebook, opened its regional headquarters in early 2022. Companies like Visa also extended their purpose-build headquarters opened last year. Many global companies relocated their operations and employees from Eastern Europe and Russia to the UAE. Dubai proved itself as a hub for worldwide commercial and technology. Many new market entrants are aiming to enter Dubai, offer services to a bigger market, and reach a larger audience. This was proven after seeing a rise in issuing a higher number of new license registrations than renewals.

The large chunk of the leads received from companies was for formation from the EU, US, and Russia. Services and technology sectors, notably Fin-tech, continued to show demands for occupation, followed by Crypto businesses. Setting up commercial entities like shops of all kinds and restaurants in popular and new locations has impacted the market in Retail and resulted in higher sales than Offices.


Commercial Sales | Dubai

The commercial property market has witnessed a 38% increase in units transacted for H1 2022 compared to H1 2021. What we saw in 2021 continued in H1 2022 with an 89% increase in sales value for H1 2022. That resulted in a rise in prices, demand, and sales for commercial properties.

According to CRC data, leasing transactions decreased by 1% for H1 2022 over H1 2021. However, we have witnessed the highest growth in the warehouse sector, warehouses at 142%.

Across the board, the registered tenant leads for CRC increased by a staggering 140% in H1 2022 compared to H1 2021. All the sectors in commercial property recorded increased demand, the highest increase for Warehouses by 180% followed by an increase in demand at 136% for Retail and 114% for Office spaces.

Across all sectors, i.e. Offices, Warehouses, Retail, and Labour Camps, inquiries for investment rose compared to last year, which helped capital value expectations rise for the year ahead. Investment trends across property in the UAE during H1 2022 have witnessed a positive trend, whereas the owners modify how we use office space. Post-COVID situations were favorable for the retail sector, as the public started to go out and increased tourist arrivals. Thus, the country experienced massive demand for commercial spaces of all kinds.

COMMERCIAL LEASING

The commercial property sector maintained momentum during the second quarter of 2022. Most relocation and consolidation activity was concluded over H2 2021 and Q1 2022, with existing companies keeping their current office spaces due to attractive lease rates they could achieve during or before COVID-19.

According to CRC data, leasing transactions decreased by 1% for H1 2022 over H1 2021. However, we have witnessed the highest growth in the warehouse sector, warehouses at 142%.

Across the board, the registered tenant leads for CRC increased by a staggering 140% in H1 2022 compared to H1 2021. All the sectors in commercial property recorded increased demand, the highest increase for Warehouse by 180% followed by an increase in demand at 136% for Retail and 114% for Office spaces.

In Q1 2022, we saw an increased demand in commercial spaces that continued to Q2 2022 for both Grade A and Grade B, with the highest occupancy levels in Dubai compared to the last few quarters.

CRC has witnessed a higher conversion of inquiries and longer transaction timelines for all types of commercial spaces, mainly offices. The most preferred office size is between 1,500 sq. ft to 3,000 sq. ft range with a very high preference for fitted office spaces, which continues to be in small supply in superior built and centrally located office stock.