Jumeirah Lake Towers (JLT), Barsha Heights, Business Bay, Sheikh Zayed Road, and Al Barsha are among the top localities in Dubai for leasing. These areas have continued to draw enterprises.
According to recent statistics from Betterhomes, Dubai real estate experienced substantial changes and new trends in the commercial property market during the third quarter of 2023.
According to the data, the volume of transactions in the commercial real estate market increased by 22%, indicating a steady level of activity and investor interest.
Notably, the office sector experienced a significant increase in transaction volume of 31% and a rise in transaction value of 53%.
The commercial real estate industry in Dubai’s Q3 2023 report reveals its adaptability and tenacity in the face of changing forces. A large increase in transaction volumes across several market categories and a severe shortage of stock characterize this time period. The landscape of this quarter was determined by underlying trends and subtleties, not just the total transacted value, according to Behnam Bargh, managing director of Better homes’ CRC.
The secondary market for office space also saw an increase in average prices of 22%, making it a tempting investment opportunity for investors in Dubai, according to the statistics.
The retail industry, however, was confronted with difficulties, with a noticeable reduction of -7 percent in retail transactions and a dramatic decline of -21 percent in the total transacted value.
Changes in consumer preferences, changing buying patterns, and the expanding impact of e-commerce on traditional retail are all cited as causes of this trend.
Overall, Dubai’s commercial real estate market demonstrated adaptation and durability in the third quarter of 2023.
This increase in buyer leads, according to Bargh, “underscores the enduring appeal of Dubai’s commercial properties” and “reflects the enduring confidence investors place in this market.”
Office space continued to be in high demand, and transaction volume and value both rose. However, with decreased transaction volume and overall value, the retail industry faced considerable difficulties.
In the meantime, Q3 2023 saw notable trends in the field of commercial real estate consulting (CRC).
With a 70% rise, the surge in buyer leads illustrates the high demand for commercial real estate products across all categories.
Leads from offices, stores, and warehouses all jumped by 35%, 99%, and a startling 150%, respectively.
These findings cast doubt on the idea that remote work is on the decline and show that office space is still in high demand.
The increase in retail leads demonstrates the ongoing allure of Dubai’s retail locations, highlighting the significance of strategic location and customer experience.
The sharp rise in warehouse leads highlights the expanding importance of distribution centers and effective logistics in Dubai’s commercial real estate industry.
Additionally, an 86% rise in sale listings published since the previous year shows a thriving market where property owners are actively participating and investigating prospects.
Tenant leads in the leasing sector surged by 29%, indicating a rising demand for commercial leasing in Dubai. Increases of 22%, 47%, and 22% in office, retail, and warehouse leads, respectively, highlight the changing dynamics of these industries.
Notably, there was a 24 percent fall in leasing transactions and an 8 percent decline in lease listings, both of which may indicate a leasing market that is developing quickly and a supply and demand mismatch in the leasing market that may be driven by changing company preferences.
The 23 percent increase in 1 cheque payments and the 29 percent reduction in 4 cheque payments are payment trends worth noticing as they show tenants’ preference for flexible payment alternatives.
According to the data, Dubai’s top neighborhoods for office leasing, including Jumeirah Lake Towers (JLT), Barsha Heights, Business Bay, Sheikh Zayed Road, and Al Barsha, have continued to draw in firms.
