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The Enduring Allure Of Dubai As A Dynamic Business Hub Persists
During the second quarter of 2023, Dubai’s commercial real estate (CRE) market witnessed an extraordinary surge in sales transactions. Contributing to the emirate’s real estate sector achieving its highest-ever semi-annual sales in the first half of the year.
Compared to the same period in the previous year, the CRE market saw a significant increase of 22% in Q2. The total value of transactions experienced an astounding growth of 101%, amounting to Dh21.385 billion. Indicating the market’s robust expansion, as stated in the Commercial Property Market report by Behnam Bargh, the managing director of CRC, a real estate brokerage.
The office properties in Dubai showed a notable upturn, with transactions increasing by 49% compared to the previous year. Business Bay, Jumeirah Lake Towers, Jumeirah Village Circle, Barsha Heights, and Dubai Silicon Oasis emerged as the top communities for office sales during Q2 2023, reflecting the strong demand for commercial spaces in these areas.
Dubai retail sector also experienced substantial growth, with transactions increasing by 50% and transacted value rising remarkably by 94%. Despite a decline in commercial leasing transactions by 12% compared to the previous year, the demand for commercial real estate remained robust throughout Q2 2023, indicating significant interest and confidence from buyers in the market.
Dubai’s allure as a thriving business hub with a prime location and world-class infrastructure endures. Despite challenges in the leasing market, the commercial real estate sales market exhibited robust growth in Q2 2023. The surge in sales transactions and transacted values highlights the strong demand for commercial properties, making Dubai an attractive destination for investors and businesses seeking growth opportunities.
During Q2 2023, CRC Dubai observed a diverse profile of buyers, attracting both investors and end-users from various nationalities. The top countries of origin for buyers were India, Norway, and the UK, showcasing the international appeal and global investment interest in Dubai’s commercial real estate sector.
As per DLD, 60,440 sales transactions were recorded with a value of Dh177.3 billion in the first half of 2023. The total real estate transactions in Dubai for the first six months of the year, including registered real estate mortgages and grants, amounted to Dh252.7 billion, according to the report by DLD.
