Business Bay continues to dominate the list of Dubai’s most searched district for buying and renting office space in Dubai in the first quarter of 2014, revealed propertyfinder.ae, the UAE’s leading property portal. The website, which recently released their Q1 2014 report covering the latest real estate trends in the UAE, also noted a 35 and 55 percent quarter-on-quarter rise in sale and rental values respectively, of commercial property in Dubai.
“Whilst the top two locations for buying office space in Dubai, namely Business Bay and Jumeirah Lake Towers have not changed, we have seen a 15 percent increase in views of properties in these locations, quarter-on-quarter. In addition, DIFC, which placed 9th in Q4 2013, has moved up in popularity, securing third spot and a huge 45 percent hike in property views, over the same period. This year’s results are particularly interesting because they reflect a huge uptick in the rate of growth of the commercial real estate sector, which has been trailing behind the residential market in terms of pricing and investor and tenant interest,” commented Michael Lahyani, CEO and Founder of propertyfinder.ae.
With Dubai emerging as a go-to investment destination for the world’s wealthy and it being one of the world’s fastest growing premium property markets, international investors are driven to seek opportunities in the Emirate. Whilst Indian, British and Pakistani nationals account for majority of the foreign investment into the Dubai property sector, interest from other overseas markets is also growing. For instance, Chinese investors are ramping up their investment in the Middle East in order to diversify their asset base. In January this year, the government issued a law establishing the Dubai Investment Development Agency to boost Dubai’s reputation as an international business hub and attract investors to set up projects in the Emirate.
Adding that property values are expected to rise markedly in line with the improving investment climate and economic confidence in 2014, Lahyani said, “Office sale and rental prices are rising, providing strong capital returns and yields for investors. For instance, rents in Business Bay in Q1 2014 were 27 percent higher than those in Q1 2013 whilst leasing prices in Jumeirah Lake Towers rose by over 15 percent during the same period. With over 250,000 jobs estimated to be created within the next six years, more multinationals and start-ups are expected to establish offices and invest in expansion in Dubai. This is in turn likely to cause consumers to spend more and positively impact businesses.”
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