Dubai’s commercial property market is undergoing a period of growth in most of its key areas as the emirate’s economy improves and occupier demand is on the rise.
The increase is centered on submarkets in the central region, such as Business Bay, Downtown Dubai, DIFC, Barsha and Jumeirah Lake Towers (JLT). This information is based on research conducted by Cluttons, the international real estate consultancy.
DIFC is almost saturated and has the highest office rents in the emirate which, overall, rose by 8.1 per cent between the first and second quarters of 2013.
Corporate office tenants are negotiating longer leases with fixed rents or increases of 5 per cent per year. These moves are expected to protect them from the types of short-term rental increases that accompany improving economic conditions.
The retail property sector is also benefiting from improved economic conditions. New and existing retailers alike are being drawn to affluent areas such as Al Wasl and Jumeirah Beach Road.
The most active retailers are furniture outlets, clothing stores, coffee chains, and retail bank branches.
Developers are building new community shopping centres to meet current demand. These malls are being constructed in Palm Jumeirah (The Pointe), Dubai Marina (Jumeirah Beach Village), and Motor City (The Ribbon).
Existing malls, such as Mall of the Emirates, The Dubai Mall, Dragon Mart, and Al Ghurair Centre, will be expanded, and pre-lets will likely account for the majority of new space.
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