The Government of the UAE and the Dubai authorities conduct a well-thought-out policy that is aimed at the continuous and consistent development of the national real estate market. The main feature of the current policy is its multifaceted orientation that involves expansion of all the sub-market components.
Nowadays, a special attention is paid to the establishment of the long-term partnership relations with the world’s leading technology companies. So, in practice, the Emirate of Dubai provides for the most favourable conditions for renting commercial spaces.
As of today, numerous tech heavyweights have their offices at the most modern commercial and industrial premises of the Dubai TECOM Group. Among them there are such well-known companies as Samsung, Huawei, Oracle, SAP, etc. These and other companies have a significant influence on the development strategy of the Dubai’s office property market.
The current average prices for the TECOM office space range from Dh175 to Dh200 per square foot. The exact price for each property unit usually depends on the type of the owner — whether it is leased directly from a master-developer or via a private developer.
It should be noted that the Dubai commercial premises have been enjoying a sustained demand among the major international companies already for a long time. That is why there was a certain shortage in the large vacant commercial space at the last several years. However, the situation is likely to be changed in the nearest future.
Recently, Dubai authorities have announced the launch of several mega-developments on the territory of the city. The two largest projects are the «ICD Brookfield Place» on the territory of the Dubai International Financial Centre Free Trade Zone (DIFC FTZ) and the «1 Central» at the Dubai World Trade Centre (DWTC).
These brand new office centres will provide the Grade A office space for international and locally operated companies and legal entities. Besides, the business-friendly organizational and legal structure will allow carrying different activities on the conditions of the dual licensing.
Nowadays the Grade A office premises are leased at the relatively stable prices around Dh350 per square foot (cf. Dh600 in 2008), and this is irrespective of the continuously increasing demand for the Dubai commercial space.
According to the annual “Market Update Report” released by the «CB Richard Ellis» (CBRE) American commercial real estate company, the Dubai real estate market will enjoy a certain growth in the first-hand of properties in 2017.
At the same time, the secondary real estate market remains under pressure and is characterised by the annual 12 per cent decline in rental values. This situation is primarily due to the continuous predominance of the multiple smaller office properties.
Specialists note that small offices ownership is considered to be a negative phenomenon on the real estate market as it adds certain complexities to the procedure of leasing large properties. However, it will be no more a problem for the new-built office premises.
Speaking about the residential premises, almost all the local developers, in contrary to office spaces, will focus on the mid-market buyers and investors offering smaller property units with lower construction costs.
So, the Dubai authorities together with the local developers have elaborated an efficient scheme of boosting the local real estate market and increasing the income from this profitable sector.
Thus, the Emirate of Dubai does not stop expanding its real estate market and welcomes all the international companies to open their offices and carry on businesses in the most business favourable environment.
