CRC, a Betterhomes Group company and Dubai’s largest commercial real estate agency, released their Q1 2022 Dubai Commercial Property Market Report, which provides an in-depth overview of Dubai’s commercial real estate over the past quarter.
The first quarter of 2022 has proven that the Dubai Real Estate market continues to soar. The commercial real estate market’s remarkable post-pandemic recovery resulted in one of the strongest quarters in the last several years.
Reflecting on Q1, Ben Bargh, Director at CRC, said “In 2021, the commercial real estate market experienced a rebound that surpassed expectations with increased transactions and demand across the board. The growth continues moving forward into 2022, with confidence building among investors and end-users in the market.”
“The commercial property market right now is the strongest since 2016, with office, warehouse, and retail units in high demand for both sales and leasing.” Ben continues.
New policies issued by the government at the beginning of 2022, such as modifying the working week to Monday – Friday to align with the rest of the world, have made Dubai even more attractive to investors looking to grow or expand the business.
Overall, it can be expected that the commercial property market will continue on an upward trajectory, supporting growth in Dubai’s property market and the economy as a whole.
The Dubai property market had a total sales value of nearly AED 56 billion in the first quarter of 2022, according to DXB Interact, a record-breaking quarter compared to previous years. At CRC, our invoiced transactions rose 62% in Q1 2022 over Q1 2021.
Office and retail sales remain at the forefront of the growth, with offices experiencing a 31% increase and retail a 104% increase for units sold over Q1 2021. The total sales value also continues to rise, as offices have seen a 71% increase and retail units a 49% increase over Q1 2021.
Prime communities such as Business Bay and Jumeirah Lake Towers continue to lead from the front for office sales, followed by Emirates Living and Dubai Silicon Oasis.
For retail sales, International City, Jumeirah Lake Towers, and Business bay came out on top for Q1 2022.
According to CRC data, the number of leasing transactions is up 7% for Q1 2022 vs Q1 2021, with the highest increase in the warehouse sector, which is 88%.
While prices rise and the demand grows, tenants who would previously shop around year on year, to secure high-quality units at the lowest price, are opting to lock down long-term leases at lower rental values instead.
Seemingly, the trust in the market has bounced back in the first quarter of 2022, with CRC recording a 17% increase in payments with 4 cheques and 1 cheque payments decreasing by 7%.