Dubai Commercial Real Estate sector hits the stride in 2014

After being the glitzy winner to host an international event of World Expo 2020 on November, 2013, Emirate business sector started showing significant gains. Rising demand for office spaces in Dubai clearly indicated that companies and businessmen are concentrating to inaugurate and expand their work setups in the city. Experts predicted that this trend will continue to grow as the positive trends are being observed in economy and real estate sector across the city. With the inception of infrastructure projects like airport expansion, other logistic and transport projects like extension of the red line of Dubai Metro, sizable augmentation observed for warehouse and logistic units. It is expected that this emirate will be the “Crane Capital” again with lots of mega projects in the pipeline.

Expectations with Expo 2020 win

It is expected that aggressive market performance and Expo 2020 win in year 2013 will probably result in lot of optimism and growth. After identifying the rising economy and business opportunities confidence level of entrepreneurs show more confidence and started showing interest in expanding their setups. Moreover, they are feeling more satisfied and realized that strong potential of earning profits has minimized the risks of failures. At the moment market is showing high level of activity. Stability in office sector is observed after an extended duration of limited activity. Significant demand is expected for both medium to small units.

How does progressing economy affect on commercial office supply?

Progressing economy and booming business sector drastically affect on supply of commercial office space units in prime freezones. Especially, Dubai Internet city and Dubai Media City (TECOM A&B) started showing rapid depletion in vacant units. Rising demand of business units also made it possible to increase the rents to 29 percent AED 180 per square feet during Q3 of 2013 and first quarter of 2014. Secondly the falling supply level of units in centrally located freezones is provoking the need of more units in secondary locations like Dubai Health Care City and the International Media Production Freezone (IMPZ). Market analysis revealed demand for office space is equally rising for both primary and secondary locations. Besides this, rises in demand is also observed for centrally located submarkets like Business Bay and Downtown.

Dubai commercial real estate- rising trends in year 2014

The steady increase of occupancy levels of centrally located “Grade A” offices is expected to continue and experts predicted very low vacancy levels in office space at the end of this year. In addition to that it is also observed that The Department of Economic Development, documented 12 percent rise in the number of business licenses issued during the last quarter of year 2013. The positive sentiment of business sector and economy indicated the certain demand for office space in Dubai. The shortage in supply, push developers to construct projects in secondary locations like submarkets of Downtown Dubai and Business Bay. Liquid occupiers like banking sector are likely to avail this option. The rising demand of commercial properties in Dubai has generated an unofficial quota system among landlords as they are now considering working with both the sectors.

Expectations are there that market will acquire this trend because building owners are now strategically thinking about their assets. The optimism in the industrial sector is also showing rises in demand for the first quarter in 2014. The initial preparation for the event of Expo 2020 around Al Maktoum international Airport and Jebel Ali Freezone have resulted in the rise in demand of business space in this area. Rents for industrial units are also moving upward in Dubai Investment Park (DIP).

The rising economic confidence and positive trends of business and real estate sector have remarkably increased the demand of commercial and industrial units across the city. And necessitate expanding existing freezones in the city to execute the demand.

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Office Space in Dubai for your Small and Corporate Business

Every business venture needs an office space – whether it’s a start up or an expanding enterprise. Before you start looking for space, you should outline what you want you’re your business. If you’re just starting up and looking to keep costs down, then a virtual office will be most cost effective. Providing you with an office environment without having to lease office space, it offers you the advantage of a business address, infrastructure such as telephone, Internet and equipment. On the other hand, if you need a physical office space without the hassle of utility bills and office admin, then a serviced office is a good option. Giving you equipped space, it allows you to get your business up and running right away and upgrade as and when your business grows.

However, if you need a large office space in Dubai, then conventional offices spaces are the best option. Detail your requirement to make sure you locate the right Dubai commercial property. Ask yourself if you need individual offices or an open plan space. What meeting or pantry facilities will you need? Would you need parking for customers and staff? Finding the right office space in Dubai can have a huge impact on employee productivity and in turn the bottom line. As one of the world’s leading business hubs, Dubai offers small and big businesses a great selection of commercial real estate. With new businesses looking to establish a presence in Dubai and existing companies looking to expand their presence, Dubai commercial property is growing each day.

Dubai International Finance Centre, DIFC, is one of the world’s fastest and most attractive financial zones and home to some of the world’s biggest firms. Here are some of the best commercial real estate districts for established businesses and start ups. A prestigious address, DIFC offers some of the best office space in Dubai at Grade A towers such as Liberty House. Close to the metro, steps away from shops and restaurants and within easy access to Sheikh Zayed Road, DIFC offers commercial properties in Dubai that come with shell and core and fitted office spaces. Business Bay, an upcoming residential and commercial real estate cluster, is a visionary project featuring premium waterfront towers set amidst landscaped gardens and pristine surroundings. Some of the prominent towers in the community include The Prism and Al Manara. Offices are conveniently planned to suit the needs of modern businesses. Most towers offer state-of-the-art health clubs, gymnasiums, temperature-controlled pools and business centres. Another popular destination to explore commercial properties in Dubai is TECOM.

A free zone dedicated to information, communication, media and knowledge industries, TECOM is a vibrant district offering residential and fully equipped commercial office space in Dubai. Fitted to the highest standard, popular towers in TECOM include Grosvenor Business Tower and Executive Heights. Proximity to the metro and Sheikh Zayed Road add to the value of commercial real estate in TECOM. Dubai Marina is also a great location, given the competitive lease packages on Dubai commercial property on offer. Marina Plaza is a go-to address for Dubai commercial property in the Marina. One of the few commercial real estate buildings in the Marina, the tower offers fantastic views of the Marina and is located next to Marina Mall, just off Sheikh Zayed Road. Jebel Ali is another thriving commercial real estate community in Dubai. A port town known for its industries, Jebel Ali today is a much-sought after residential and commercial district. Home to 1000s of small, medium and big-level companies, Jebel Ali features magnificent high-rise residential apartments, luxury villas and penthouses alongside commercial properties in Dubai such as retail complexes, shopping malls and entertainment options. The Ibn Battuta Mall and the Emirates Golf Club are very close. The metro station is an added advantage, providing easy transportation services for residents and employees to various areas of Dubai. Buying or renting a space for your business is a huge decision, so consider the above before you zone in on a suitable Dubai commercial property.

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