Owing to a spike in demand, the occupier market in the UAE is still robust.

Owing to a spike in demand, the occupier market in the UAE is still robust.

Due in large part to higher demand from newly registered renters, the occupier market in Dubai and Abu Dhabi experienced robust activity in the first quarter.

Occupier activity in Dubai was robust in the first quarter. The overall number of rental registrations reached 46,850, up 35.8% from the previous year, according to figures from the Dubai Land Department. “An increase in new rental registrations of 51.1 percent, or 34,461, has been a major contributor to this headline surge. CBRE Middle East reported in its UAE Office Market Review for the first quarter of 2024 that the number of renewed contracts registered was 12,389, representing a 6.1 percent increase from the previous year.

The present occupier market characteristics in Dubai continue to attract multinational firms when compared to other global marketplaces. Free zone sites nonetheless account for a sizable amount of market activity despite a scarcity of supply. According to a commercial real estate services company, developers are speeding up upcoming projects in both free zone and non-free zone sites to satisfy growing demand.

It stated that “a wide range of sectors continue to drive demand in Dubai’s occupier market, with the financial services sector, specifically hedge funds and assets management firms, being notable sectors of demand.”

The UAE’s occupier market continued to see healthy levels of demand in the first quarter of this year, according to Taimur Khan, head of Research Mena in Dubai. This is mostly because of the nation’s robust economic growth, which continues to draw occupiers.

Although occupier demand is anticipated to stay strong over the next years, the scarcity of high-quality assets will probably impede future market activity. According to Khan, “strong performance across all segments is expected to be supported by the limited number of developments in the pipeline in both Abu Dhabi and Dubai.”

Going forward, we anticipate that premium assets—in particular, Prime and Grade A stock—will continue to beat the market because of the rising demand brought on the

Within this market sector, the average occupancy rate in Dubai grew from 90.1 percent to 91.3 percent in the first quarter of 2024. “Rental rate rises are being driven by the combination of rising occupancy levels and a dearth of high-quality inventory. The average rent for Prime, Grade A, Grade B, and Grade C climbed by 7.6%, 17.9%, 21.6%, and 16.8% in the first quarter of 2024, respectively.

The average annual rental rates for Prime Grade A, B, and C apartments were Dh255, Dh192, Dh162, and Dh131 per square foot as of the first quarter of 2024. We foresee sustained good performance in Dubai’s occupier market, given the restricted quantity of forthcoming constructions and the shortage of high-quality stock.

In the first quarter of 2024, the institutional-grade buildings in Abu Dhabi had an average occupancy rate of 94%, up from 92.5% the year before. “The rise in rental rates is still being supported by these higher occupancy levels. According to CBRE, the average growth rates for Prime, Grade A, and Grade B rents were 6.6%, 3.4%, and 9.7%, respectively, in the year ending in the first quarter of 2024.”

Dubai Real Estate Investment Opportunities are plentiful and varied, offering significant potential for investors. The top residential areas in Dubai for expats continue to see high demand due to their attractive amenities and lifestyle offerings. The Dubai commercial real estate growth is another key area of interest, driven by both local and international businesses. For those looking to invest in Dubai property, understanding the nuances of the market is crucial.

The demand for office space in Dubai is on the rise, particularly in luxury real estate sectors. Comparing free zone vs. non-free zone properties can help investors make informed decisions. Regularly updated Dubai real estate market insights provide valuable information on trends and opportunities.

The impact of economic growth on Dubai real estate cannot be overstated, as it continues to attract investors and businesses. Developers are focusing on high-quality real estate developments in Dubai to meet the rising demand for premium assets. The performance of Prime and Grade A stock is particularly noteworthy, with limited new supply expected to keep these segments strong.

Looking at upcoming real estate projects in Dubai, there is optimism about the future market performance. Meanwhile, the Abu Dhabi real estate market also shows positive trends, mirroring some of the dynamics seen in Dubai.

The ongoing trends in Dubai property rental are indicative of a robust market, driven by high occupancy rates and rising rental rates. Access to comprehensive real estate services in Dubai is essential for navigating this competitive landscape. Understanding the occupier market dynamics in the UAE provides a clearer picture of overall market health and opportunities.

Finally, tailored real estate investment strategies in Dubai can help investors maximize their returns in this vibrant market.

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