Demand For UAE’s commercial Space Reaches Highest Level Since 2014

The latest RICS Global Commercial Property Monitor found that the United Arab Emirates (UAE) is experiencing some of the strongest commercial property market momentum in a decade.

Occupier demand across the UAE gained further impetus as the net balance climbed to +67% from an already strong figure of +57% in Q3. Moreover, this embodies the most elevated reading for tenant demand within the UAE since 2014.

Meanwhile, the country continues to attract strong interest from foreign investors, with a net balance of +56% respondents reporting growth in investment enquiries from abroad.

A respondent in Dubai stated that “the office sector, in particular, is seeing surging demand in prime areas like DIFC, Downtown, and Business Bay, with occupancy rates hitting 95-97%. Meanwhile, a survey participant in Abu Dhabi reports that the Capital “continues to experience a shortage of prime office space,” however they go on to add that “additional supply is in the pipeline in Al Maryah Island developments and off-island locations.”

Looking to the future, rent and capital value expectations at the three and twelve-month metrics continue to post exceptionally strong numbers, with positive momentum set to continue for the foreseeable future. More than half of respondents (53%) believe the market is in the middle of an upturn phase – up from 41% in Q3.

RICS UAE Board Member, Jonathan King, said: “The UAE’s commercial property market continues to go from strength to strength. The fact that we are seeing some of the strongest demand in a decade is a testament to the ongoing momentum of the sector, particularly in prime office properties. Not only Dubai, but Abu Dhabi is also demonstrating real vigour and resilience in the face of international uncertainty. Commercial property in the UAE is among the strongest performers of any nation covered by the RICS global monitor.”