The UAE’s commercial real estate market is still doing well, and things are looking up, according to a survey released on Wednesday.
Topline indicators demonstrated the ongoing strength of the UAE commercial real estate market, according to the Royal Institution of Chartered Surveyors (RICS) Q3 2023 Global Commercial Property Monitor.
The office sub-sector saw the largest increase of 60% in occupier demand overall, followed by retail and industrial, which climbed by 53% and 48%, respectively. Overall, occupier demand is still extremely positive. According to the research, occupier and investor activity is still showing strong growth momentum throughout the United Arab Emirates, with an increase observed in all mainstream industries in Q3.
Future-focused, three-month rent expectations are expected to increase from 43% to 61% this quarter, which is the highest reading in over a decade. Anticipating further, 12-month rent estimates are even more positive (+66%), marking the highest level of optimism since 2014. Additionally, 12-month capital value forecasts witnessed a reading of +71 percent, the highest since 2014; this was a significant increase from the previous quarter’s reading of +54 percent.
Experts in the area characterize the UAE real estate market as “booming” and on the rise, with heightened interest from Russian investors impacted by geopolitical happenings. The UAE is expected to maintain its strong headline capital value and rental growth for the foreseeable future, making it one among the world’s most promising investment destinations.