Commercial real estate in the UAE is considered one of the most prominent pillars of the Emirati real estate sector and the most developed and attractive to local and foreign investment. Especially with the great progress witnessed by the United Arab Emirates, which competes with major developed countries at all commercial, industrial, and technological levels.
- Commercial real estate varies between offices, warehouses, and lands allocated for commercial projects, malls, and large stores, in order to keep pace with the movement of the real estate market and meet the needs of customers and investors at varying prices according to the effects of supply and demand.
To know more details about commercial real estate in the UAE, the importance of investment, and the expectations of the real estate market around it, follow our next article, and through it you will learn about the factors affecting commercial real estate prices, its most important investment opportunities, and other prominent points on this topic.
Development of the commercial real estate market in the UAE
Experts in the real estate field expect the commercial real estate market in the UAE to grow at a compound rate of approximately 6% during the time period between 2022 and 2027.
- The commercial real estate sector witnessed a limited recession during the COVID-19 pandemic at the end of 2019, during 2012, and mid-2021, but the UAE real estate market quickly began to recover during the second half of 2021 and until 2023.
- The growth of the Emirati real estate market coincided with the UAE state’s support for the real estate sector and the provision of many legal facilities for buying and selling transactions, as well as providing the advantage of tax exemption, which encouraged increased investment in real estate in the Emirates.
The importance of investing in commercial real estate in the UAE and Abu Dhabi
The importance of investing in commercial real estate in the UAE– Abu Dhabi lies in the following:
- There are various options for commercial real estate for local clients and foreign investors available for sale or rent, including shops, warehouses, offices, and commercial lands.
- Tax-exempt features that typically imposed on real estate investment.
- Obtaining legal and financial facilities in the field of buying, selling, and renting commercial real estate.
- Achieving high short-term and long-term profitable investment returns.
Reasons for the high demand for commercial real estate in the UAE
The high demand for commercial real estate in the UAE is due to the following reasons:
- The increasing number of expatriates to the UAE for the purpose of work and investment.
- Financing facilities for commercial real estate projects.
- The tax exemption feature contributed to attracting large numbers of investors and starting the process of selling and renting real estate at prices suitable for all customer budgets.
- Security and stability witnessed by the United Arab Emirates.
- High-level infrastructure for commercial real estate.
Factors affecting commercial real estate prices in the UAE
A number of factors affect the prices of commercial real estate in the UAE, which are as follows:
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- The economic situation of the country.
- The geographical location of the commercial property.
- The status of commercial real estate, whether ready, under construction, or off plan.
- The property’s area, interior design, and decorations used in it.
- Building materials price fluctuations.
- Supply and demand interactions in the real estate market.
- Gross domestic product growth.
Investment opportunities in commercial real estate in the UAE
We have chosen for you the most important investment areas for commercial real estate in the Emirates, which are as follows:
Business Bay area in Dubai for commercial real estate
Business Bay offers many investment opportunities through its offers of shops, offices and warehouses available for sale and rent at varying prices. It is a distinguished place with its strategic location, its high-quality infrastructure, and the exquisite designs of its properties from the outside and inside, and this is what makes it a distinguished destination for investors of different nationalities.
Dubai Marina Commercial Real Estate Projects
The Dubai Marina area is considered one of the most prestigious real estate areas in Dubai, which provides a wide and distinctive range of commercial properties of various sizes and prices. Shops, offices, and restaurants for sale, rent, and profit from them in the long term.
Saadiyat Island real estate in Abu Dhabi
Saadiyat Island is widely known in Abu Dhabi as well as internationally in terms of the beauty and luxury of its commercial and residential properties. In addition to the splendor of the exterior architecture and interior design of the properties, which makes it a preferred destination for foreign investment for various projects of selling and renting stores, offices, and warehouses, and achieving high investment returns.
Expectations of the commercial real estate market in the UAE in the coming years
The commercial real estate market in the UAE is expected to grow at a compound rate of 6% during the period from 2022 to 2027. Real estate experts also expect the UAE real estate market to grow by 2.97% during the time period extending from 2023 to 2028. This, in turn, will affect fluctuations in the prices of buying, selling, and renting commercial real estate during the coming years.
Examples of successful commercial real estate in the UAE
There are many successful commercial real estate models in the Emirates, the most prominent of which are the following:
Jumeirah Village Circle commercial real estate
Jumeirah Village Circle is one of the most important real estate areas for commercial real estate investment, as it includes a variety of options for offices and stores with several different spaces and designs. Its properties are also distinguished by their proximity to service and entertainment facilities, which makes them a distinguished place to start local and foreign investment projects.
International City Dubai real estate
International City in Dubai receives great interest from investors and businessmen. Especially those who want to invest by purchasing many stores, malls, and offices and selling or renting them later at a higher price.
Al Reem Island Real Estate
Al Reem Island in Abu Dhabi provides distinctive offers of commercial properties designated for investment and designed according to international standards. It is a great example of the success of real estate investment opportunities, including stores, warehouses, and offices.
The best commercial properties for sale in Sharjah
There are many offers of commercial real estate available for sale in the Emirate of Sharjah, including the following:
Office for sale in Uptown Al Zahia
There is an office for sale in Sharjah in the Uptown Sharjah area and it has the following specifications:
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- Property location: Sharjah – Uptown.
- Property type: office.
- Property area: 818 square feet.
- Number of bathrooms: 1 bathroom.
Commercial land for sale in Sharjah
Commercial land is available for sale in Sharjah within the following specifications:
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- Property location: Sharjah – Al Madam.
- Property type: commercial land.
- Property area: 5166 square feet.
Here we have reached the conclusion of our article about commercial real estate in the UAE, the importance of investment, and real estate market expectations. We reviewed the most important information about the reality and growth of the UAE commercial real estate market, to serve as an illustrative guide for everyone who wants to start real estate investment in the United Arab Emirates and make profits through it.
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