The commercial real estate market is bouncing back
Dubai’s commercial property market is reaching new highs as we head into 2022. According to our recently released commercial property market report for 2021, the total number of transactions alone are up by 19% over 2020, with the total value of units sold reaching almost 30.88 billion.
The report reveals that demand in the market is growing increasingly stronger and prices for both sales and leasing are on the rise. After the industry saw numbers hit an all time low in 2020, we’ve seen the market make an almost complete recovery in 2021.
As the market continues to bounce back, and confidence grows among investors, business owners and entrepreneurs, all optimistic about the future of their ever growing companies. Dubai is becoming even more attractive than before, for those seeking an open environment with minimum restrictions to conduct their business operations.
Based on this year’s findings, the growth in the commercial property market is anticipated to continue through to 2022 and beyond.
Here are the headline statistics from the report:
The number of total sales transactions is up 19% from 2020, with prices increasing in sales and leasing. This trend is set to continue; as the economy and businesses continue to expand.
The number of offices sold in 2021 increased by 101%, totalling AED 1.99 billion.
The demand for office and retail spaces has steadily increased, with CRC recording a 1% and 3% increase. With increased investments in the warehouse sector, CRC achieved a tremendous growth of new registered buyers, which does not necessarily reflect the Dubai market as a whole.
According to CRC data, the average number of leasing transactions is up 15% from 2020, with the highest increase in the retail sector, which is up 126%.
The overall number of registered tenant leads increased by 58% compared to the same period last year. In line with recorded leasing transactions, the number of registered tenants in retail is leading the way with a 111% increase, followed by a 60% increase for warehouses and a 47% increase for offices.
After the astounding level of uncertainty in 2020, the trust in the market bounced back in 2021, with a significant number of commercial tenants trying to lock down long term leases of 2-3 years at lower rental values. As a result, CRC recorded a 7% increase in payments with one cheque.
For more insight into the 2021 commercial real estate market, take a look at our full report.