The predictions of the rise in demand for commercial properties for rent and sale began in the last quarter of 2015, with experts sharing their observations of increased enquiries for commercial and retail spaces in Dubai. Investors have shifted their focus from traditional residential properties to offices, warehouse, and staff accommodation in both prime and upcoming areas of the city.
Driven's commercial team have also experienced this trend, with almost half of the company's revenue in February stemming from our commercial property deals.
Recently, the often searched commercial properties in Dubai include commercial plots, offices, warehouses, shops, shopping centers, hospitals, and clinics. We have also observed that the recorded rental rates in submarkets in Al Quoz and Dubai Investment Park (DIP) have achieved almost 43% year on year growth. Between the years 2010 and 2014, the issuance of service licenses also increased by an average of 10% per year. There’s a very obvious correlation between the demand for spaces and increase in business ventures in Dubai, and the high pipeline of commercial spaces is expected to cater to those demands.
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Here are a few of the reasons for the demand for commercial properties in Dubai.
The recent dip in global oil prices has only further aided the Emirate in reducing reliance on oil, with it accounting for roughly 4% of the Emirate’s total revenue in 2015.
Dubai’s economic growth is highly supported by the service industry, accounting for more than 70% of total GDP. Following the rise of service, manufacturing, trading, and transhipment industries, businesses now require properties for their operations as well as accommodations for their employees (many whom will migrate to Dubai).
Strategic Location and Environment
Dubai continues to improve and enhance its attractive business environment for global and regional companies as is evident in the constant development of the free-zones, key infrastructure projects, favourable policy, and tax laws.
Furthermore, the Ease of Doing Business Index has ranked the UAE 22nd globally which further encourages entrepreneurship in Dubai. Experts believe that the ceasing of Iran’s sanctions is also a factor in the increase in business activity in the region and Dubai's proximity to Iran makes it the ideal hub.
[tx_heading style="default" heading_text="Top Areas" tag="h2" size="34" margin="24" align="center"]